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 FormFactor, Inc. (NASDAQ:FORM) in its Q3 2024 investor letter. FormFactor, Inc. (NASDAQ:FORM) manufactures and sells probe cards, analytical probes, probe stations, metrology systems, thermal systems, and cryogenic systems to semiconductor companies and scientific institutions. The one-month return of FormFactor, Inc. (NASDAQ:FORM) was -2.52%, and its shares gained 9.70% of their value over the last 52 weeks. On December 5, 2024, FormFactor, Inc. (NASDAQ:FORM) stock closed at $41.04 per share with a market capitalization of $3.18 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding FormFactor, Inc. (NASDAQ:FORM) in its Q3 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 growing their shares of corporate IT budgets. Nearly all stocks in the semiconductor sphere retreated this month, which affected FormFactor, Inc. (NASDAQ:FORM), a manufacturer of consumable interfaces between semiconductors and testing equipment. The company’s management indicated that there might be some end market absorption of current inventory in high memory bandwidth chips, though expected overall demand to remain stable. That weakened its share price by -24%.”
A technician soldering a cryogenic amplifier in a laboratory environment.
FormFactor, Inc. (NASDAQ:FORM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held FormFactor, Inc. (NASDAQ:FORM) at the end of the third quarter which was 28 in the previous quarter. FormFactor, Inc. (NASDAQ:FORM) recorded its highest-ever Q3 revenues of $207.9 million, $2.9 million over the higher end of its estimate range. While we acknowledge the potential of FormFactor, Inc. (NASDAQ:FORM) 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 FormFactor, Inc. (NASDAQ:FORM) and shared trending AI stocks on latest analyst ratings and news. FormFactor, Inc. (NASDAQ:FORM) contributed to the TimesSquare Capital Management U.S. Small Cap Growth Strategy’s performance in the previous quarter by surging 33% due to strong quarterly results and positive future outlook. 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.