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 OneStream, Inc. (NASDAQ:OS), in the third quarter 2024 investor letter. OneStream, Inc. (NASDAQ:OS) develops corporate performance management software solutions. The one-month return of OneStream, Inc. (NASDAQ:OS) was -4.67%, and its shares gained 8.14% of their value over the last three months. On December 5, 2024, OneStream, Inc. (NASDAQ:OS) stock closed at $30.33 per share with a market capitalization of $6.36 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding OneStream, Inc. (NASDAQ:OS) in its Q3 2024 investor letter:
“Moving in the other direction was the 37% gain from our new position in OneStream, Inc. (NASDAQ:OS), a software developer of cloud-based enterprise systems that streamlines corporate financial reporting and forecasting. Added to the strategy on its IPO and later purchases, its subscription business has retention rates of nearly 100% as it continues to displace legacy providers—often in situations where OneStream singularly took the place of several incumbent systems. Other current clients, such as Walmart, have expanded their OneStream use with its newer machine learning modules.”
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OneStream, Inc. (NASDAQ:OS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held OneStream, Inc. (NASDAQ:OS) at the end of the third quarter which was 0 in the previous quarter. While we acknowledge the potential of OneStream, Inc. (NASDAQ:OS) 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 OneStream, Inc. (NASDAQ:OS) and shared the list of most promising new technology stocks according to hedge funds. 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.