TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the strategy returned -1.35% (gross) and -1.56% (net) compared to 8.14% for the Russell Midcap Growth Index. In the fourth quarter, the U.S. small to mid-cap growth equities with the greatest valuation (P/E), lowest quality (return on equity), or highest risk (beta or volatility) provided the strongest gains. In this environment, the portfolio’s fourth-quarter performance fell short of the Russell Midcap® Growth Index, resulting in poor performance for the year. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, TimesSquare Capital Management U.S. Focus Growth Strategy emphasized stocks such as Chemed Corporation (NYSE:CHE). Chemed Corporation (NYSE:CHE) is a company that offers hospice and palliative care services. The one-month return of Chemed Corporation (NYSE:CHE) was 0.10%, and its shares lost 4.13% of their value over the last 52 weeks. On April 4, 2025, Chemed Corporation (NYSE:CHE) stock closed at $597.34 per share with a market capitalization of $8.743 billion.
TimesSquare Capital Management U.S. Focus Growth Strategy stated the following regarding Chemed Corporation (NYSE:CHE) in its Q4 2024 investor letter:
“We also exited Chemed Corporation (NYSE:CHE), which operates through the VITAS and Roto-Rooter segments. VITAS offers hospice and palliative care services. Roto-Rooter includes plumbing, drain cleaning, and water restoration. While results from VITAS were in line with expectations, Roto-Rooter missed due to lower call volumes. Although the company’s VITAS business is well positioned for future growth, their Roto-Rooter business has poor visibility and that led us to sell out of stock, which retreated by -13% during the time it was held in the quarter.”
A close-up of an experienced nurse administering hospice and palliative care.
Chemed Corporation (NYSE:CHE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Chemed Corporation (NYSE:CHE) at the end of the fourth quarter which was 27 in the previous quarter. While we acknowledge the potential of Chemed Corporation (NYSE:CHE) 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.
We covered Chemed Corporation (NYSE:CHE) in another article, where we shared TimesSquare Capital U.S. Focus Growth Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.