TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter the fund returned 5.77% (net), compared to a 7.58% return for the Russell 2000 Growth Index. Despite a decline in many equity markets in January, they rebounded over the following two months, resulting in a robust 2024 first quarter. 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 Regal Rexnord Corporation (NYSE:RRX), in the first quarter 2024 investor letter. Regal Rexnord Corporation (NYSE:RRX) manufactures and sells industrial powertrain solutions, power transmission components, electric motors and electronic controls, air-moving products, and specialty electrical components and systems. The one-month return of Regal Rexnord Corporation (NYSE:RRX) was -6.11%, and its shares lost 5.38% of their value over the last 52 weeks. On June 20, 2024, Regal Rexnord Corporation (NYSE:RRX) stock closed at $140.40 per share with a market capitalization of $9.339 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Regal Rexnord Corporation (NYSE:RRX) in its first quarter 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. Regal Rexnord Corporation (NYSE:RRX) manufactures electric motors, electrical motion controls, power generation, and power transmission products. Its shares gained 22% despite reporting mixed fourth quarter results, with revenues slightly below expectation and better earnings. Notable strength was found in Aerospace & Defense, Data Centers, Medical, and Energy.”
A technician inspecting a specialized industrial machinery in an engineering lab.
Regal Rexnord Corporation (NYSE:RRX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Regal Rexnord Corporation (NYSE:RRX) at the end of the first quarter which was 33 in the previous quarter. While we acknowledge the potential of Regal Rexnord Corporation (NYSE:RRX) 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 Regal Rexnord Corporation (NYSE:RRX) and shared Diamond Hill Capital Mid Cap Strategy’s views on the company. 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.
