TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” first-quarter investor letter. A copy of the letter can be downloaded here. The first quarter’s performance for US small to mid-cap stocks was barbelled. In the first quarter, the strategy returned 10.16% (gross) and 9.95% (net) while the Russell Midcap Growth Index returned 9.50%. 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 Elastic N.V. (NYSE:ESTC), in the first quarter 2024 investor letter. Elastic N.V. (NYSE:ESTC) provides hosted and managed solutions designed to run in hybrid, public or private clouds, and multi-cloud environments. The one-month return of Elastic N.V. (NYSE:ESTC) was 10.29%, and its shares gained 78.98% of their value over the last 52 weeks. On June 27, 2024, Elastic N.V. (NYSE:ESTC) stock closed at $114.76 per share with a market capitalization of $11.673 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Elastic N.V. (NYSE:ESTC) in its first quarter 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 are closely tied to increasing shares of corporate IT budgets. Pulling back by -11% was Elastic N.V. (NYSE:ESTC), which develops enterprise-wide search and analytical services for a diverse set of uses. While Elastic’s revenues and earnings exceeded expectations, the recent sales growth for its cloud-based offerings missed elevated expectations. That segment can vary quarter to quarter, and its search tools are being adopted for building AI applications.”
A group of software engineers working in an open, futuristic office.
Elastic N.V. (NYSE:ESTC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held Elastic N.V. (NYSE:ESTC) at the end of the first quarter which was 45 in the previous quarter. The total revenue of Elastic N.V. (NYSE:ESTC) in the first quarter was $335 million, an increase of 20% year-over-year. While we acknowledge the potential of Elastic N.V. (NYSE:ESTC) 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 discussed Elastic N.V. (NYSE:ESTC) in another article and shared the list of best growth stocks to invest in for the next 5 years. In addition, please check out our hedge fund investor letters Q1 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.
