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 Cintas Corporation (NASDAQ:CTAS). Headquartered in Cincinnati, Ohio, Cintas Corporation (NASDAQ:CTAS) provides corporate identity uniforms and related business services. The one-month return of Cintas Corporation (NASDAQ:CTAS) was -5.12%, and its shares gained 12.39% of their value over the last 52 weeks. On April 4, 2025, Cintas Corporation (NASDAQ:CTAS) stock closed at $190.33 per share with a market capitalization of $76.853 billion.
TimesSquare Capital Management U.S. Focus Growth Strategy stated the following regarding Cintas Corporation (NASDAQ:CTAS) in its Q4 2024 investor letter:
“Many of our Industrial positions provide necessary business-to-business operational services, highly technical components, equipment enabling automation & efficiency improvements, or essential infrastructure services. Cintas Corporation (NASDAQ:CTAS), a supplier of corporate identity uniforms and facilities services, dropped -11%. We trimmed the position ahead of their fiscal second earnings report. While earnings were above estimates and revenues were in line, there was a pullback in organic growth. Uniforms were steady, however, First Aid and Fire product sales slowed.”
A corporate office with staff members wearing company branded uniforms.
Cintas Corporation (NASDAQ:CTAS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held Cintas Corporation (NASDAQ:CTAS) at the end of the fourth quarter which was 48 in the previous quarter. In the third quarter of fiscal 2025, Cintas Corporation’s (NASDAQ:CTAS) revenue increased 8.4% to $2.61 billion. While we acknowledge the potential of Cintas Corporation (NASDAQ:CTAS) 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 Cintas Corporation (NASDAQ:CTAS) in another article, where we shared the list of stock Jim Cramer discussed recently. 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.