TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the strategy returned 0.08% (gross) and -0.13% (net) compared to -3.21% for the Russell Midcap Growth Index. The equity markets performed well in the second quarter, as long as one held only a small number of the biggest, fastest-growing U.S. stocks (i.e., the Magnificent Seven). In addition, please check the fund’s top five holdings to know its best picks in 2024.
TimesSquare Capital Management U.S. Focus Growth Strategy highlighted stocks like Teradyne, Inc. (NASDAQ:TER), in the second quarter 2024 investor letter. Teradyne, Inc. (NASDAQ:TER) manufactures automated test systems and robotics products. The one-month return of Teradyne, Inc. (NASDAQ:TER) was 0.10%, and its shares gained 28.37% of their value over the last 52 weeks. On September 10, 2024, Teradyne, Inc. (NASDAQ:TER) stock closed at $125.37 per share with a market capitalization of $20.457 Billion.
TimesSquare Capital Management U.S. Focus Growth Strategy stated the following regarding Teradyne, Inc. (NASDAQ:TER) in its Q2 2024 investor letter:
“One holding that seems to have reached a positive inflection point for earnings was Teradyne, Inc. (NASDAQ:TER), a leading producer of testing and measurement equipment for semiconductors and other complex electronic systems. Teradyne’s revenues and earnings outpaced forecasts, driven by higher volumes of semiconductor testing equipment, especially for high-bandwidth memory chips. Management’s guidance for the rest of 2024 was higher than expected, which increased our confidence that Teradyne can continue growing into 2025. For this quarter, its shares gained 31%.”
An engineer in a cleanroom testing and tweaking an integrated circuit.
Teradyne, Inc. (NASDAQ:TER) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Teradyne, Inc. (NASDAQ:TER) at the end of the second quarter which was 34 in the previous quarter. While we acknowledge the potential of Teradyne, Inc. (NASDAQ:TER) 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 Teradyne, Inc. (NASDAQ:TER) and shared the list of worst performing AI stocks of last week. In addition, please check out our hedge fund investor letters Q2 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.
