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 Sprout Social, Inc. (NASDAQ:SPT), in the second quarter 2024 investor letter. Sprout Social, Inc. (NASDAQ:SPT) designs, develops, and operates a web-based social media management platform. The one-month return of Sprout Social, Inc. (NASDAQ:SPT) was -17.85%, and its shares lost 43.44% of their value over the last 52 weeks. On September 16, 2024, Sprout Social, Inc. (NASDAQ:SPT) stock closed at $27.93 per share with a market capitalization of $1.594 billion.
TimesSquare Capital Management U.S. Small Cap Growth Strategy stated the following regarding Sprout Social, Inc. (NASDAQ:SPT) in its Q2 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 closely tie to increasing shares of corporate IT budgets. Sprout Social, Inc. (NASDAQ:SPT) designs, develops, and operates a web-based social media management platform. The combination of lackluster first quarter results and lower forward guidance disappointed investors. We decided to liquidate the position which suffered a -53% decline while held during the quarter.”
A marketing manager in a boardroom making decisions about the company’s social media management platform.
Sprout Social, Inc. (NASDAQ:SPT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held Sprout Social, Inc. (NASDAQ:SPT) at the end of the second quarter which was 22 in the previous quarter. The Sprout Social, Inc.’s (NASDAQ:SPT) second quarter revenue was $99.4 million, up 25% year-over-year. While we acknowledge the potential of Sprout Social, Inc. (NASDAQ:SPT) 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 Sprout Social, Inc. (NASDAQ:SPT) and shared Wasatch Small Cap Growth Strategy’s views on the company. Sprout Social, Inc. (NASDAQ:SPT) detracted from the performance of Columbia Acorn Fund in Q2 2024. 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.
