TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter the fund returned -1.59% (gross) and -1.83% (net), compared to a -2.92% return for the Russell 2000 Growth Index. The equity markets performed well in the second quarter, as long as one held only a handful of the biggest, fastest-growing U.S. stocks. Despite profitability turning positive this quarter following negative or neutral results in previous quarters, momentum remained the most important component in the worldwide market. In addition, please check the fund’s top five holdings to know its best picks in 2024.
TimesSquare Capital Management U.S. Small Cap Growth Strategy highlighted stocks like ESAB Corporation (NYSE:ESAB), in the second 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 3.25%, and its shares gained 46.52% of their value over the last 52 weeks. On September 17, 2024, ESAB Corporation (NYSE:ESAB) stock closed at $103.81 per share with a market capitalization of $6.274 billion.
TimesSquare Capital Management U.S. Small Cap Growth Strategy stated the following regarding ESAB Corporation (NYSE:ESAB) in its Q2 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) is engaged in the formulation, development, manufacture, and supply of consumables and equipment for cutting, joining, and welding metals. The first quarter was solid with revenues, margins, and earnings all ahead of Street projections. ESAB also outperformed welding peers in terms of volume and pricing. Its -15% pullback was largely related to the negative second quarter preannouncement of a more North American-focused competitor with larger automotive and machinery exposure that we believe is less applicable to ESAB.”
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, 17 hedge fund portfolios held ESAB Corporation (NYSE:ESAB) at the end of the second quarter which was 26 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 Alphyn Capital Management’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 Q2 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.