Polen Capital, an investment management company, released its fourth-quarter investor letter for “Polen 5Perspectives Small Mid Growth Strategy”. A copy of the letter can be downloaded here. The Polen 5Perspectives Small-Mid Growth Composite Portfolio returned -0.1% gross and -0.3% net of fees in the fourth quarter of 2025, compared to a 0.3% return of the Russell 2500 Growth Index. Following double-digit returns in 2Q and 3Q, SMID caps concluded the year with a 0.3% return in 4Q. Biotech stood out as a major performer during the quarter, expanding beyond the AI theme. The name of the Strategy changed from Polen U.S. SMID Cap Growth to Polen 5Perspectives Small Mid Growth, to emphasize the significance of the 5 viewpoints framework and the influence of perspective in investing. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Polen 5Perspectives Small Mid Growth Strategy highlighted Rocket Lab Corporation (NASDAQ:RKLB). Rocket Lab Corporation (NASDAQ:RKLB) is an end-to-end space company that provides launch services and space systems solutions. On March 17, 2026, Rocket Lab Corporation (NASDAQ:RKLB) stock closed at $78.59 per share. One-month return of Rocket Lab Corporation (NASDAQ:RKLB) was 5.60%, and its shares gained 318.48% over the past 52 weeks. Rocket Lab Corporation (NASDAQ:RKLB) has a market capitalization of $44.6 billion.

Polen 5Perspectives Small Mid Growth Strategy stated the following regarding Rocket Lab Corporation (NASDAQ:RKLB) in its fourth quarter 2025 investor letter:

"Rocket Lab Corporation (NASDAQ:RKLB) is an end-to-end space company which engages in the development of rocket launch and control systems for the space and defense industries. The company operates in two primary segments: Launch Services and Space Systems. Launch Services provides rides into orbit for small satellites with their Electron rocket. Space Systems designs and manufactures spacecraft components, satellite buses, and offers mission operations and other space solutions. The stock was up nearly 50% in the quarter on a strong set of earnings results and a growing backlog. While we initiated a position later in the quarter, the lack of exposure for the better part of the period meant the stock represented a detractor to relative performance."

Rocket Lab Corporation (NASDAQ:RKLB) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 45 hedge fund portfolios held Rocket Lab Corporation (NASDAQ:RKLB) at the end of the fourth quarter, up from 34 in the previous quarter. Rocket Lab Corporation (NASDAQ:RKLB) delivered $$180 million in revenue for the fourth quarter of 2025, an increase of 36% year over year. While we acknowledge the potential of Rocket Lab Corporation (NASDAQ:RKLB) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Rocket Lab Corporation (NASDAQ:RKLB) and shared a list of top-performing companies. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.