TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” third-quarter investor letter. A copy of the letter can be downloaded here. Within equities, smaller or value-oriented stocks in developed economies yielded higher, whereas emerging markets saw the opposite trend. In the third quarter, the strategy returned 4.96% (gross) and 4.75% (net) while the Russell Midcap Growth Index returned 6.54%. 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 Floor & Decor Holdings, Inc. (NYSE:FND), in the third quarter 2024 investor letter. Floor & Decor Holdings, Inc. (NYSE:FND) is a multi-channel specialty retailer of hard surface flooring and related accessories. The one-month return of Floor & Decor Holdings, Inc. (NYSE:FND) was 5.43%, and its shares gained 8.99% of their value over the last 52 weeks. On December 6, 2024, Floor & Decor Holdings, Inc. (NYSE:FND) stock closed at $109.92 per share with a market capitalization of $11.787 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Floor & Decor Holdings, Inc. (NYSE:FND) in its Q3 2024 investor letter:
Our preferences in the Consumer-oriented sectors lean toward value-oriented or specialty retailers, franchise models, or premium brands. Floor & Decor Holdings, Inc. (NYSE:FND) is a specialty retailer of hard surface flooring and accessories. The company posted mixed results for the second quarter. While earnings and gross margins exceeded consensus estimates, revenues and same store sales fell short. Despite its struggles on the residential side, Floor & Decor is making great progress with professional customers by generating record sales in its Spartan commercial division. Management has decided to temporarily reduce their store growth ambitions due to the interest rate environment. Investors reacted positively to these developments as the stock price lifted by 25%.
An overhead view of a website displaying the multiple options of flooring products available for purchase.
Floor & Decor Holdings, Inc. (NYSE:FND) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Floor & Decor Holdings, Inc. (NYSE:FND) at the end of the third quarter which was 34 in the previous quarter. While we acknowledge the potential of Floor & Decor Holdings, Inc. (NYSE:FND) 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 Floor & Decor Holdings, Inc. (NYSE:FND) and shared Giverny Capital Asset Management’s views on the company. 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.