TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” third-quarter investor letter. A copy of the letter can be downloaded here. Within equities, smaller or value-oriented stocks in developed economies yielded higher, whereas emerging markets saw the opposite trend. In the third quarter, the strategy returned 4.96% (gross) and 4.75% (net) while the Russell Midcap Growth Index returned 6.54%. 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 DoorDash, Inc. (NASDAQ:DASH) in the third quarter 2024 investor letter. DoorDash, Inc. (NASDAQ:DASH) is a commerce platform that connects merchants, consumers, and independent contractors. The one-month return of DoorDash, Inc. (NASDAQ:DASH) was 2.02%, and its shares gained 75.84% of their value over the last 52 weeks. On December 6, 2024, DoorDash, Inc. (NASDAQ:DASH) stock closed at $178.48 per share with a market capitalization of $74.14 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding DoorDash, Inc. (NASDAQ:DASH) in its Q3 2024 investor letter:
“Our preferences in the Consumer-oriented sectors lean toward value-oriented or specialty retailers, franchise models, or premium brands. DoorDash, Inc. (NASDAQ:DASH), an online food delivery platform and logistics provider, climbed 31%. We had begun building our initial position in DoorDash in May-June timeframe and ramped up the position size prior to the second quarter earnings report that was released in August. DoorDash delivered broad-based positive results versus street expectations.”
A shot of a delivery driver zooming down a busy street, symbolizing the company’s quick and efficient delivery services.
DoorDash, Inc. (NASDAQ:DASH) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 73 hedge fund portfolios held DoorDash, Inc. (NASDAQ:DASH) at the end of the third quarter which was 67 in the previous quarter. While we acknowledge the potential of DoorDash, Inc. (NASDAQ:DASH) 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 DoorDash, Inc. (NASDAQ:DASH) and shared Morgan Stanley’s top cyclical stocks for an economic recovery. TimesSquare Capital U.S. Mid Cap Growth Strategy initiated a position in DoorDash, Inc. (NASDAQ:DASH) during Q2 2024. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.