Is TPG (TPG) Positioned to Benefit from Surging Demand for Illiquid Alternative Investments?

TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the strategy returned -1.35% (gross) and -1.56% (net) compared to 8.14% for the Russell Midcap Growth Index. In the fourth quarter, the U.S. small to mid-cap growth equities with the greatest valuation (P/E), lowest quality (return on equity), or highest risk (beta or volatility) provided the strongest gains. In this environment, the portfolio’s fourth-quarter performance fell short of the Russell Midcap® Growth Index, resulting in poor performance for the year. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, TimesSquare Capital Management U.S. Focus Growth Strategy emphasized stocks such as TPG Inc. (NASDAQ:TPG). Based in Fort Worth, Texas, TPG Inc. (NASDAQ:TPG) is an alternative asset manager. The one-month return of TPG Inc. (NASDAQ:TPG) was -11.85%, and its shares lost 9.39% of their value over the last 52 weeks. On April 4, 2025, TPG Inc. (NASDAQ:TPG) stock closed at $40.99 per share with a market capitalization of $15.145 billion.

TimesSquare Capital Management U.S. Focus Growth Strategy stated the following regarding TPG Inc. (NASDAQ:TPG) in its Q4 2024 investor letter:

“New to the strategy this quarter is TPG Inc. (NASDAQ:TPG), an alternative asset management firm. Their acquisition of Angelo Gordon adds diversified credit and real estate to TPG’s private equity platform. They are well positioned to benefit from growing investor demand for illiquid alternative investments.”

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TPG Inc. (NASDAQ:TPG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held TPG Inc. (NASDAQ:TPG) at the end of the fourth quarter which was 20 in the previous quarter. While we acknowledge the potential of TPG Inc. (NASDAQ:TPG) 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 covered TPG Inc. (NASDAQ:TPG) in another article, where we shared AI news and ratings investors probably missed. In addition, please check out our hedge fund investor letters Q4 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.