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 Verisk Analytics, Inc. (NASDAQ:VRSK). Verisk Analytics, Inc. (NASDAQ:VRSK) offers data analytics solutions to the insurance markets. The one-month return of Verisk Analytics, Inc. (NASDAQ:VRSK) was -4.37%, and its shares gained 25.89% of their value over the last 52 weeks. On April 4, 2025, Verisk Analytics, Inc. (NASDAQ:VRSK) stock closed at $284.99 per share with a market capitalization of $39.977 billion.
TimesSquare Capital Management U.S. Focus Growth Strategy stated the following regarding Verisk Analytics, Inc. (NASDAQ:VRSK) in its Q4 2024 investor letter:
“Verisk Analytics, Inc. (NASDAQ:VRSK) provides data analytics and technology services to the insurance market. These include predictive and decision support solutions. Their third quarter surpassed projections for revenue, profits, and earnings. Notable areas of revenue growth were in Underwriting and Claims. This company continues to make headway on its customer-centric approach to new product development. Some examples include its Future Reforms product a data visualization tool for managing major policy updates) and an expanded Executive Insights report (adding commercial auto coverage to current personal auto and general liability insurance in the first half of 2025). We added to the position over the quarter, which gained only 3%.”
An engineer using the latest predictive analytics software to formulate solutions.
Verisk Analytics, Inc. (NASDAQ:VRSK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Verisk Analytics, Inc. (NASDAQ:VRSK) at the end of the fourth quarter which was 42 in the previous quarter. In the fourth quarter, Verisk Analytics, Inc. (NASDAQ:VRSK) generated $736 million in revenues, representing an increase of 8.6% from Q4 2023. While we acknowledge the potential of Verisk Analytics, Inc. (NASDAQ:VRSK) 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 Verisk Analytics, Inc. (NASDAQ:VRSK) in another article, where we shared the list of best consulting stocks to buy according to hedge funds. 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.