TimesSquare Capital Management, an equity investment management company, released its “U.S. Small/Mid Cap Growth Strategy” fourth-quarter investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy outperformed the Russell 2500 Growth Index and returned 6.03% (gross), and the index return was 4.72%. For the full year, the strategy return was -25.06% (gross) compared to a -26.21% return for the benchmark. The relative weakness in the Information Technology and Energy sectors in the quarter was offset by strength in the Financials, Consumer Discretionary, Health Care, and Industrials sectors. In addition, please check the fund’s top five holdings to know its best picks in 2022.
TimesSquare U.S. Small/Mid Cap Growth Strategy highlighted stocks like Paylocity Holding Corporation (NASDAQ:PCTY) in its Q4 2022 investor letter. Headquartered in Schaumburg, Illinois, Paylocity Holding Corporation (NASDAQ:PCTY) is a software company that provides cloud-based human capital management and payroll software solutions. On March 22, 2023, Paylocity Holding Corporation (NASDAQ:PCTY) stock closed at $177.17 per share. One-month return of Paylocity Holding Corporation (NASDAQ:PCTY) was -13.62%, and its shares lost 15.06% of their value over the last 52 weeks. Paylocity Holding Corporation (NASDAQ:PCTY) has a market capitalization of $9.881 billion.
TimesSquare U.S. Small/Mid Cap Growth Strategy made the following comment about Paylocity Holding Corporation (NASDAQ:PCTY) in its Q4 2022 investor letter:
“Some industry influences in the Information Technology sector weighed on our relative performance, such as the market preference for hardware over software. That included this quarter’s greatest detractor, Paylocity Holding Corporation (NASDAQ:PCTY). A provider of cloud-based payroll and human capital management software for medium-sized organizations, Paylocity reported revenues, earnings, and forward guidance that were higher than anticipated. The company won new clients, which combined with cross selling and higher employment levels at existing clients added to Paylocity’s growth. However, it seemed that Paylocity was caught by negative market sentiment for either employment-related stocks or high growth software, and its shares retreated by -19%. That was counter to our view on its fundamentals, so we added to Paylocity on that weakness.”
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Paylocity Holding Corporation (NASDAQ:PCTY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Paylocity Holding Corporation (NASDAQ:PCTY) at the end of the fourth quarter which was 32 in the previous quarter.
We discussed Paylocity Holding Corporation (NASDAQ:PCTY) in another article and shared Wasatch Small Cap Core Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q4 2022 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.
