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 Five Below, Inc. (NASDAQ:FIVE), in the first quarter 2024 investor letter. Five Below, Inc. (NASDAQ:FIVE) is a US-based specialty value retailer. The one-month return of Five Below, Inc. (NASDAQ:FIVE) was -19.92%, and its shares lost 43.72% of their value over the last 52 weeks. On June 27, 2024, Five Below, Inc. (NASDAQ:FIVE) stock closed at $110.62 per share with a market capitalization of $6.092 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Five Below, Inc. (NASDAQ:FIVE) in its first quarter 2024 investor letter:
“Slipping by -15% was Five Below, Inc. (NASDAQ:FIVE), a discount retailer focused on teens and pre-teens with most goods priced less than $5. Though revenues were in line with expectations, earnings were below as the company needed to increase expenses to offset in-store losses. Those efforts to mitigate that shrinkage should provide longer-term benefits, though it may not be until later in the year that Five Below’s shares reflect that.”
A family happily shopping for everyday items in a specialty retail store.
Five Below, Inc. (NASDAQ:FIVE) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Five Below, Inc. (NASDAQ:FIVE) at the end of the first quarter which was 33 in the previous quarter. Five Below, Inc.’s (NASDAQ:FIVE) sales climbed by 11.8% to $811.9 million in the first quarter of 2024 from $726.2 million in the first quarter of 2023. While we acknowledge the potential of Five Below, Inc. (NASDAQ:FIVE) 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 Five Below, Inc. (NASDAQ:FIVE) in another article and shared Wasatch U.S. Select Strategy’s views on the company. In the Q4 2023 investor letter, TimesSquare Capital U.S. Mid Cap Growth Strategy reported that Five Below, Inc. (NASDAQ:FIVE) had increased by 32%. 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.
