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 Certara, Inc. (NASDAQ:CERT), in the third quarter 2024 investor letter. Certara, Inc. (NASDAQ:CERT) offers software products and technology-enabled services to customers for bio-simulation in drug discovery, preclinical and clinical research, regulatory submissions, and market access. The one-month return of Certara, Inc. (NASDAQ:CERT) was -1.36%, and its shares lost 33.78% of their value over the last 52 weeks. On December 5, 2024, Certara, Inc. (NASDAQ:CERT) stock closed at $10.66 per share with a market capitalization of $1.751 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Certara, Inc. (NASDAQ:CERT) in its Q3 2024 investor letter:
“Our preferences among Health Care stocks are those companies providing novel therapies for unmet needs that deserve premium pricing, or specialized service providers. Pulling back by -15% was regarding Certara, Inc. (NASDAQ:CERT), which develops biosimulation technology that facilitates development and regulatory approvals for new medicines. Certara’s revenues and earnings each fell shy of expectations because some of Certara’s large biopharma clients had been cautious with recent spending. While Certara’s management reaffirmed its guidance for the remainder of the year—implying that spending may catch up in the next quarter, we grew increasingly concerned that biopharma spending could deteriorate. Hence, we trimmed the position.”
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Certara, Inc. (NASDAQ:CERT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Certara, Inc. (NASDAQ:CERT) at the end of the third quarter which was 11 in the previous quarter. The third quarter revenue of Certara, Inc. (NASDAQ:CERT) grew 11% year-over-year to $94.8 million. While we acknowledge the potential of Certara, Inc. (NASDAQ:CERT) 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 Certara, Inc. (NASDAQ:CERT) and shared The London Company Small Cap Strategy’s views on the company in the previous quarter. TimesSquare Capital Management U.S. Small Cap Growth Strategy increased its holdings in Certara, Inc. (NASDAQ:CERT) in the previous quarter anticipating continued improvement in biotech funding and clinical trials. 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.