TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” first-quarter investor letter. A copy of the letter can be downloaded here. The first quarter’s performance for US small to mid-cap stocks was barbelled. In the first quarter, the strategy returned 10.16% (gross) and 9.95% (net) while the Russell Midcap Growth Index returned 9.50%. 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 Hexcel Corporation (NYSE:HXL), in the first quarter 2024 investor letter. Hexcel Corporation (NYSE:HXL) manufactures carbon fibers, structural reinforcements, honeycomb structures, resins, and composite materials and parts for commercial aerospace, space and defense, and industrial applications. The one-month return of Hexcel Corporation (NYSE:HXL) was -7.62%, and its shares lost 16.31% of their value over the last 52 weeks. On June 27, 2024, Hexcel Corporation (NYSE:HXL) stock closed at $63.62 per share with a market capitalization of $5.288 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Hexcel Corporation (NYSE:HXL) in its first quarter 2024 investor letter:
“Many of our Industrials positions provide necessary business-to-business operational services, highly technical components, automation & efficiency improvements, or essential infrastructure services. Hexcel Corporation (NYSE:HXL) also saw a -1% return, though here we trimmed our position. Hexcel manufactures composite materials for aerospace, commercial and industrial uses worldwide; this quarter its revenues and earnings fell short of expectations. There was weakness from its largest segment, Commercial Aerospace, which felt the near-term issues surrounding Boeing’s lower production levels. When Hexcel’s shares rebounded after the market’s initial negative reaction, we trimmed our position because we want to see stronger order growth later in 2024 before making it larger in the strategy.”
An engineer inspecting the assembly of an aircraft wing, intricately designed components in the background.
Hexcel Corporation (NYSE:HXL) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Hexcel Corporation (NYSE:HXL) at the end of the first quarter which was 27 in the previous quarter. While we acknowledge the potential of Hexcel Corporation (NYSE:HXL) 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.
We discussed Hexcel Corporation (NYSE:HXL) in another article and shared the list of stocks insiders are buying. TimesSquare Capital U.S. Mid Cap Growth Strategy commented on Hexcel Corporation (NYSE:HXL) in its q4 2023 investor letter. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
