TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter the fund returned 6.50% (gross) and 6.24% (net), compared to an 8.41% return for the Russell 2000 Growth Index. Global markets performed fairly in the third quarter, with the majority of credit and stock markets reporting returns in the mid- to high single-digit range. Energy costs decreased and economic activity indicators remained steady, but recent increases in Middle East tensions started to reverse that. Smaller or value-oriented stocks in developed economies yielded higher returns in the equity space, whereas emerging markets saw the opposite trend. Beta was one of the most powerful variables in global equities this quarter, following a poor first half of 2024. In addition, please check the fund’s top five holdings to know its best picks in 2024.
TimesSquare Capital U.S. Small Cap Growth Strategy highlighted stocks like EMCOR Group, Inc. (NYSE:EME) in the third quarter 2024 investor letter. Headquartered in Norwalk, Connecticut, EMCOR Group, Inc. (NYSE:EME) offers construction and facilities, building, and industrial services. The one-month return of EMCOR Group, Inc. (NYSE:EME) was -0.12%, and its shares gained 139.15% of their value over the last 52 weeks. On December 5, 2024, EMCOR Group, Inc. (NYSE:EME) stock closed at $513.52 per share with a market capitalization of $23.62 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding EMCOR Group, Inc. (NYSE:EME) in its Q3 2024 investor letter:
“Leaving the strategy this quarter was EMCOR Group, Inc. (NYSE:EME), which provides construction and operational services for mechanical and electrical systems to a broad range of commercial, industrial, utility, and institutional customers. It had been one of the steadiest gainers and contributors this year, though the stock’s market capitalization grew past the upper limit for the strategy.”
A construction site featuring a large concrete foundation poured by the cement manufacturing company.
EMCOR Group, Inc. (NYSE:EME) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held EMCOR Group, Inc. (NYSE:EME) at the end of the third quarter which was 45 in the previous quarter. In the third quarter, EMCOR Group, Inc. (NYSE:EME) generated revenues of $3.7 billion, which represents growth of 15.3% year over year. While we acknowledge the potential of EMCOR Group, Inc. (NYSE:EME) 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 EMCOR Group, Inc. (NYSE:EME) and shared Louis Navellier’s topstock picks heading into 2025. In addition, please check out our hedge fund investor letters Q3 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.