TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter the fund returned 6.50% (gross) and 6.24% (net), compared to an 8.41% return for the Russell 2000 Growth Index. Global markets performed fairly in the third quarter, with the majority of credit and stock markets reporting returns in the mid- to high single-digit range. Energy costs decreased and economic activity indicators remained steady, but recent increases in Middle East tensions started to reverse that. Smaller or value-oriented stocks in developed economies yielded higher returns in the equity space, whereas emerging markets saw the opposite trend. Beta was one of the most powerful variables in global equities this quarter, following a poor first half of 2024. In addition, please check the fund’s top five holdings to know its best picks in 2024.
TimesSquare Capital U.S. Small Cap Growth Strategy highlighted stocks like Boot Barn Holdings, Inc. (NYSE:BOOT) in the third quarter 2024 investor letter. Boot Barn Holdings, Inc. (NYSE:BOOT) is a lifestyle retail chain that offers western and work-related footwear, apparel, and accessories. The one-month return of Boot Barn Holdings, Inc. (NYSE:BOOT) was 9.94%, and its shares gained 100.47% of their value over the last 52 weeks. On December 5, 2024, Boot Barn Holdings, Inc. (NYSE:BOOT) stock closed at $148.57 per share with a market capitalization of $4.535 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Boot Barn Holdings, Inc. (NYSE:BOOT) in its Q3 2024 investor letter:
“Our preferences in the Consumer-oriented sectors lean toward value-oriented or specialty retailers, franchise models, premium brands, or support services for other consumer companies. Kicking in a 30% gain was Boot Barn Holdings, Inc. (NYSE:BOOT), a leader in a highly fragmented retail segment focused on western and work footwear, apparel, and accessories. Boot Barn’s recent revenues and earnings not only exceeded expectations, but also showed the first sequential improvement in two years. All segments improved and management expects that momentum to continue, so it increased its guidance for 2025. Later in the quarter, management pre-announced better-than-expected in-stores and online sales, and we trimmed our position on the further price appreciation.”
A farmer standing in a sun-drenched field wearing overalls and a rugged pair of western-style boots.
Boot Barn Holdings, Inc. (NYSE:BOOT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Boot Barn Holdings, Inc. (NYSE:BOOT) at the end of the third quarter which was 23 in the previous quarter. In the fiscal second quarter of 2025, Boot Barn Holdings, Inc.’s (NYSE:BOOT) net sales increased 13.7% year-over-year to $426 million. While we acknowledge the potential of Boot Barn Holdings, Inc. (NYSE:BOOT) 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 Boot Barn Holdings, Inc. (NYSE:BOOT) and shared SouthernSun Small Cap Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.