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 Loar Holdings Inc. (NYSE:LOAR) in its Q2 2024 investor letter. Loar Holdings Inc. (NYSE:LOAR) designs, manufactures, and markets aerospace and defense components. The one-month return of Loar Holdings Inc. (NYSE:LOAR) was 9.94%, and its shares gained 28.77% of their value over the last 3 months. On September 17, 2024, Loar Holdings Inc. (NYSE:LOAR) stock closed at $76.95 per share with a market capitalization of $6.903 billion.
TimesSquare Capital Management U.S. Small Cap Growth Strategy stated the following regarding Loar Holdings Inc. (NYSE:LOAR) 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. New to the portfolio this quarter is Loar Holdings Inc. (NYSE:LOAR), a designer and manufacturer of aerospace and defense components for aircraft. We purchased this stock as part of its Initial Public Offering early in the quarter. This company encompasses 16 brands they have acquired over the past 12 years.”
A huge in-process machining center producing parts for aircraft and aerospace systems.
Loar Holdings Inc. (NYSE:LOAR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Loar Holdings Inc. (NYSE:LOAR) at the end of the second quarter which was 0 in the previous quarter. While we acknowledge the potential of Loar Holdings Inc. (NYSE:LOAR) 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 Loar Holdings Inc. (NYSE:LOAR) and shared NCG Small Cap Strategy’s views on the company. Baron Small Cap Fund initiated a position in Loar Holdings Inc. (NYSE:LOAR) during 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.
