TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” second-quarter investor letter. A copy of the same can be downloaded here. 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. Given the Magnificent Seven’s superior performance, differences in growth and value among large caps were downplayed. There wasn’t much style diversity between mid-caps, small caps, or outside the U.S. In the second quarter, the strategy returned -2.94% (gross) and -3.14% (net) while the Russell Midcap Growth Index returned -3.21%. 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 Monolithic Power Systems, Inc. (NASDAQ:MPWR), in the second quarter 2024 investor letter. Monolithic Power Systems, Inc. (NASDAQ:MPWR) is a semiconductor-based power electronics solutions provider. The one-month return of Monolithic Power Systems, Inc. (NASDAQ:MPWR) was -2.69%, and its shares appreciated 86.97% of their value over the last 52 weeks. On September 12, 2024, Monolithic Power Systems, Inc. (NASDAQ:MPWR) stock closed at $895.91 per share with a market capitalization of $43.677 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Monolithic Power Systems, Inc. (NASDAQ:MPWR) in its Q2 2024 investor letter:
“Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, systems that improve productivity or efficiency for their clients, and others that closely tie to increasing shares of corporate IT budgets. In April, several semiconductor companies—notably the industry bellwether Taiwan Semiconductor—lowered their outlook given the weakness in the automotive end markets. That pressured the broader semiconductor ecosystem, including Monolithic Power Systems, Inc. (NASDAQ:MPWR), which designs, develops, and markets high-performance power management semiconductors. Because we continue to see long-term opportunities for Monolithic, we used that weakness to add to our position. Its shares later recovered, and subsequently Monolithic reported better-than-expected revenues and earnings. The company saw order increases related to data center spending, market share gains, and a large pipeline of new designs. That led Monolithic to increase its forward guidance and its shares climbed by 21%.”
An engineer examining a DC to DC integrated circuit board, looking for any flaws.
Monolithic Power Systems, Inc. (NASDAQ:MPWR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Monolithic Power Systems, Inc. (NASDAQ:MPWR) at the end of the second quarter which was 41 in the previous quarter. With Q2 2024 revenue of $507.4 million, Monolithic Power Systems, Inc. (NASDAQ:MPWR) posted another record quarter, surpassing expectations. While we acknowledge the potential of Monolithic Power Systems, Inc. (NASDAQ:MPWR) 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 Monolithic Power Systems, Inc. (NASDAQ:MPWR) and shared Carillon Eagle Mid Cap Growth Fund’s views on the company. 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.
