TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” third-quarter investor letter. A copy of the same can be downloaded here. In the quarter the fund returned -3.67% (net), compared to -7.32% return for the Russell 2000 Growth Index. Year-to-date the fund returned 11.56% (net) compared to 9.59% return for the index. The third quarter saw a decline in global equities markets, but they remained positive YTD. Value has generally outperformed Growth, as demonstrated by the style factors and market indexes. In addition, please check the fund’s top five holdings to know its best picks in 2023.
TimesSquare Capital U.S. Small Cap Growth Strategy highlighted stocks like Treace Medical Concepts, Inc. (NASDAQ:TMCI) in the third quarter 2023 investor letter. Headquartered in Ponte Vedra, Florida, Treace Medical Concepts, Inc. (NASDAQ:TMCI) is a medical technology company. On December 6, 2023, Treace Medical Concepts, Inc. (NASDAQ:TMCI) stock closed at $8.91 per share. One-month return of Treace Medical Concepts, Inc. (NASDAQ:TMCI) was -10.90%, and its shares lost 62.81% of their value over the last 52 weeks. Treace Medical Concepts, Inc. (NASDAQ:TMCI) has a market capitalization of $549.532 million.
TimesSquare Capital U.S. Small Cap Growth Strategy made the following comment about Treace Medical Concepts, Inc. (NASDAQ:TMCI) in its Q3 2023 investor letter:
“We also exited our position in the developer of medical equipment to treat obstructive sleep apnea, Inspire Medical Systems. The new anti-obesity medicines led to a market belief that a decline in obesity rates will cause a decline in sleep apnea diagnoses and thus lower sales volumes for Inspire. However, that view is not supported by our discussions with doctors, nor by the high demand and long wait times for Inspire’s devices. Nevertheless, there is some correlation between obesity levels and sleep apnea. Given that this cloud will take several quarters to dissipate, we sold our position that was down -33% during the partial quarter. There were similar challenges for Treace Medical Concepts, Inc. (NASDAQ:TMCI), an orthopedic medical device company focused on treating bunions. The market seemed concerned about the pace of Treace’s quarterly sales, a slippage in its average selling price (ASP) for devices, and a wave of obesity treatments lessening the need for orthopedic devices. In our view, Treace should see a reacceleration of sales later this year, higher demand for more complex devices will lift its ASP, and podiatrists note that obesity does not drive the occurrence of bunions. Thus, as its shares pulled back by -49% we added to our position.”
An orthopedic surgeon performing a surgery while using ankle plating systems.
Treace Medical Concepts, Inc. (NASDAQ:TMCI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Treace Medical Concepts, Inc. (NASDAQ:TMCI)at the end of third quarter which was 18 in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2023 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.
