TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter the fund returned 6.50% (gross) and 6.24% (net), compared to an 8.41% return for the Russell 2000 Growth Index. Global markets performed fairly in the third quarter, with the majority of credit and stock markets reporting returns in the mid- to high single-digit range. Energy costs decreased and economic activity indicators remained steady, but recent increases in Middle East tensions started to reverse that. Smaller or value-oriented stocks in developed economies yielded higher returns in the equity space, whereas emerging markets saw the opposite trend. Beta was one of the most powerful variables in global equities this quarter, following a poor first half of 2024. In addition, please check the fund’s top five holdings to know its best picks in 2024.
TimesSquare Capital U.S. Small Cap Growth Strategy highlighted stocks like JFrog Ltd. (NASDAQ:FROG), in the second quarter 2024 investor letter. Incorporated in 2008, JFrog Ltd. (NASDAQ:FROG) provides an end-to-end hybrid software supply chain platform. The one-month return of JFrog Ltd. (NASDAQ:FROG) was -0.32%, and its shares gained 4.13% of their value over the last 52 weeks. On December 5, 2024, JFrog Ltd. (NASDAQ:FROG) stock closed at $31.00 per share with a market capitalization of $3.458 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding JFrog Ltd. (NASDAQ:FROG) in its Q3 2024 investor letter:
“Another detractor was JFrog Ltd. (NASDAQ:FROG), which provides systems to manage and speed the release of software updates from developers to users. Although results were in line with earlier projections, JFrog’s management reduced guidance for the rest of 2024. The caution arose from longer sales cycles among clients, who grew more concerned about the macroeconomic environment. After speaking with the company’s management, we were encouraged that the underlying business trends remained strong. While there were delays in signing new contracts, those were not cancellations. Still, JFrog’s shares retreated by -23% and we trimmed our position.”
A corporate executive standing in front of a large monitor, demonstrating the DevOps package repository.
JFrog Ltd. (NASDAQ:FROG) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held JFrog Ltd. (NASDAQ:FROG) at the end of the third quarter which was 33 in the previous quarter. In the third quarter JFrog Ltd. (NASDAQ:FROG) reported $109.1 million in revenues, up 23% year-over-year. While we acknowledge the potential of JFrog Ltd. (NASDAQ:FROG) 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 JFrog Ltd. (NASDAQ:FROG) and shared TimesSquare Capital Management U.S. Small Cap Growth Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.