TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” third-quarter investor letter. A copy of the letter can be downloaded here. Within equities, smaller or value-oriented stocks in developed economies yielded higher, whereas emerging markets saw the opposite trend. In the third quarter, the strategy returned 4.96% (gross) and 4.75% (net) while the Russell Midcap Growth Index returned 6.54%. 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 Elastic N.V. (NYSE:ESTC) in the third quarter 2024 investor letter. Elastic N.V. (NYSE:ESTC) is a search artificial intelligence (AI) company provides hosted and managed solutions designed to run in hybrid, public or private clouds, and multi-cloud environments. The one-month return of Elastic N.V. (NYSE:ESTC) was 23.37%, and its shares lost 5.33% of their value over the last 52 weeks. On December 6, 2024, Elastic N.V. (NYSE:ESTC) stock closed at $110.98 per share with a market capitalization of $11.5 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Elastic N.V. (NYSE:ESTC) in its Q3 2024 investor letter:
“Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, systems that improve productivity or efficiency for their clients, and others that are growing their shares of corporate IT budgets. Elastic N.V. (NYSE:ESTC) is a data analytics supplier. Its shares dropped -33% for the month after they reported mixed fiscal first quarter results and lowered their revenue outlook due to lower new customer commitments. Management views its salesforce reorganization as deserving part of the blame.”
A group of software engineers working in an open, futuristic office.
Elastic N.V. (NYSE:ESTC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Elastic N.V. (NYSE:ESTC) at the end of the third quarter which was 58 in the previous quarter. Elastic N.V’s. (NYSE:ESTC) total revenue for the fiscal second quarter was $365 million, which was up 18% year-over-year. While we acknowledge the potential of Elastic N.V. (NYSE:ESTC) 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 Elastic N.V. (NYSE:ESTC) and shared AI news that broke the internet. 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.