TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter the fund returned 5.77% (net), compared to a 7.58% return for the Russell 2000 Growth Index. Despite a decline in many equity markets in January, they rebounded over the following two months, resulting in a robust 2024 first quarter. 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 ESAB Corporation (NYSE:ESAB), in the first quarter 2024 investor letter. ESAB Corporation (NYSE:ESAB) is a fabrication technology and gas control solutions company. The one-month return of ESAB Corporation (NYSE:ESAB) was -7.11%, and its shares gained 52.36% of their value over the last 52 weeks. On June 20, 2024, ESAB Corporation (NYSE:ESAB) stock closed at $96.32 per share with a market capitalization of $5.82 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding ESAB Corporation (NYSE:ESAB) in its first quarter 2024 investor letter:
“Many of our Industrial positions provide necessary business-to-business operational services, highly technical components, automation & efficiency improvements, or essential infrastructure services. ESAB Corporation (NYSE:ESAB), a fabrication technology and gas control solutions provider, jumped 28% and we trimmed on this strength. Its products include welding equipment, consumables, gas control equipment, digital solutions, and robotics. The company reported another quarter of better-than-expected results, with organic growth in sales and an expanding profit margin. Initial 2024 guidance appears to be conservative from our perspective.”
A welder wearing protective gear and goggles, completing a welding job in a modern factory.
ESAB Corporation (NYSE:ESAB) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held ESAB Corporation (NYSE:ESAB) at the end of the first quarter which was 23 in the previous quarter. While we acknowledge the potential of ESAB Corporation (NYSE:ESAB) 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 ESAB Corporation (NYSE:ESAB) and shared Diamond Hill Select Strategy’s views on the company. ESAB Corporation (NYSE:ESAB) contributed to the performance of TimesSquare Capital U.S. Small Cap Growth Strategy in the previous quarter. 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.
