TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter the fund returned -1.59% (gross) and -1.83% (net), compared to a -2.92% return for the Russell 2000 Growth Index. The equity markets performed well in the second quarter, as long as one held only a handful of the biggest, fastest-growing U.S. stocks. Despite profitability turning positive this quarter following negative or neutral results in previous quarters, momentum remained the most important component in the worldwide market. In addition, please check the fund’s top five holdings to know its best picks in 2024.
TimesSquare Capital Management U.S. Small Cap Growth Strategy highlighted stocks like Credo Technology Group Holding Ltd (NASDAQ:CRDO), in the second quarter 2024 investor letter. Credo Technology Group Holding Ltd (NASDAQ:CRDO) is a high-speed connectivity solutions provider for optical and electrical Ethernet applications. The one-month return of Credo Technology Group Holding Ltd (NASDAQ:CRDO) was -13.25%, and its shares gained 83.48% of their value over the last 52 weeks. On September 16, 2024, Credo Technology Group Holding Ltd (NASDAQ:CRDO) stock closed at $27.76 per share with a market capitalization of $4.61 billion.
TimesSquare Capital Management U.S. Small Cap Growth Strategy stated the following regarding Credo Technology Group Holding Ltd (NASDAQ:CRDO) 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. Credo Technology Group Holding Ltd (NASDAQ:CRDO), a supplier of high-speed connectivity solutions, surged ahead by 51%. The company reported inline April quarter results and management’s July quarter guidance met expectations; AI spending is a growth driver.”
An engineer in a cleanroom testing and tweaking an integrated circuit.
Credo Technology Group Holding Ltd (NASDAQ:CRDO) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Credo Technology Group Holding Ltd (NASDAQ:CRDO) at the end of the second quarter which was 27 in the previous quarter. In the most recent quarter, Credo Technology Group Holding Ltd (NASDAQ:CRDO) reported $59.7 million in revenues and non-GAAP gross margin of 62.9%. While we acknowledge the potential of Credo Technology Group Holding Ltd (NASDAQ:CRDO) 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 Credo Technology Group Holding Ltd (NASDAQ:CRDO) and shared Carillon Scout Small Cap Fund’s views on the company. 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.
