TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” second-quarter investor letter. A copy of the same can be downloaded here. The equity markets performed well in the second quarter, as long as one held only a small number of the biggest, fastest-growing U.S. stocks. Given the Magnificent Seven’s superior performance, differences in growth and value among large caps were downplayed. There wasn’t much style diversity between mid-caps, small caps, or outside the U.S. In the second quarter, the strategy returned -2.94% (gross) and -3.14% (net) while the Russell Midcap Growth Index returned -3.21%. In addition, please check the fund’s top five holdings to know its best picks in 2024.
TimesSquare Capital U.S. Mid Cap Growth Strategy highlighted stocks like HashiCorp, Inc. (NASDAQ:HCP) in the second quarter 2024 investor letter. HashiCorp, Inc. (NASDAQ:HCP) is a company that offers multi-cloud infrastructure automation solutions. The one-month return of HashiCorp, Inc. (NASDAQ:HCP) was 0.12%, and its shares gained 34.25% of their value over the last 52 weeks. On September 12, 2024, HashiCorp, Inc. (NASDAQ:HCP) stock closed at $33.79 per share with a market capitalization of $6.856 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding HashiCorp, Inc. (NASDAQ:HCP) in its Q2 2024 investor letter:
“Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, systems that improve productivity or efficiency for their clients, and others that closely tie to increasing shares of corporate IT budgets. There was a 25% gain from HashiCorp, Inc. (NASDAQ:HCP), which provides a suite of cloud infrastructure tools for development, automation, connectivity, and security. During the quarter, the company agreed to a cash acquisition offer from IBM.”
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HashiCorp, Inc. (NASDAQ:HCP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held HashiCorp, Inc. (NASDAQ:HCP) at the end of the second quarter which was 34 in the previous quarter. While we acknowledge the potential of HashiCorp, Inc. (NASDAQ:HCP) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed HashiCorp, Inc. (NASDAQ:HCP) and shared the list of best small-cap tech stocks to buy. In addition, please check out our hedge fund investor letters Q2 2024 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.
