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 MYR Group Inc. (NASDAQ:MYRG), in the third quarter 2024 investor letter. MYR Group Inc. (NASDAQ:MYRG) is an electrical construction services provider that operates through Transmission and Distribution, and Commercial and Industrial segments. The one-month return of MYR Group Inc. (NASDAQ:MYRG) was 11.87%, and its shares gained 24.20% of their value over the last 52 weeks. On December 6, 2024, MYR Group Inc. (NASDAQ:MYRG) stock closed at $166.31 per share with a market capitalization of $2.681 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding MYR Group Inc. (NASDAQ:MYRG) in its Q3 2024 investor letter:
“Many of our Industrials positions provide necessary business-to-business operational services, highly technical components, equipment enabling automation & efficiency improvements, or essential infrastructure services. There was a -25% price retrenchment from MYR Group Inc. (NASDAQ:MYRG), a leading specialty contractor serving the electric utility infrastructure, commercial, and industrial construction markets. Its fiscal quarterly revenues and earnings were lower than anticipated, driven by a handful of delayed utility transmission & distribution projects. Those hiccups largely were caused by the end clients and its problematic projects are expected to be completed by year-end. Looking past its problem projects, MYR’s backlog increased at a healthy pace, and we added to our position on its weakness.”
A construction crew using a crane to install a new electric substation.
MYR Group Inc. (NASDAQ:MYRG) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held MYR Group Inc. (NASDAQ:MYRG) at the end of the third quarter which was 27 in the previous quarter. In the third quarter, MYR Group Inc. (NASDAQ:MYRG) generated $888 million in revenues, a decrease of 5.5% compared to Q3 2023. While we acknowledge the potential of MYR Group Inc. (NASDAQ:MYRG) 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 MYR Group Inc. (NASDAQ:MYRG) and shared the list of most undervalued small-cap stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.