TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” first-quarter investor letter. A copy of the letter can be downloaded here. The first quarter’s performance for US small to mid-cap stocks was barbelled. In the first quarter, the strategy returned 10.16% (gross) and 9.95% (net) while the Russell Midcap Growth Index returned 9.50%. 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 NICE Ltd. (NASDAQ:NICE), in the first quarter 2024 investor letter. NICE Ltd. (NASDAQ:NICE) is a cloud platform provider for AI-driven digital business solutions. The one-month return of NICE Ltd. (NASDAQ:NICE) was -8.11%, and its shares lost 18.31% of their value over the last 52 weeks. On June 27, 2024, NICE Ltd. (NASDAQ:NICE) stock closed at $168.69 per share with a market capitalization of $10.705 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding NICE Ltd. (NASDAQ:NICE) in its first quarter 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 closely tied to increasing shares of corporate IT budgets. The cloud-based contact center software and compliance systems provider NICE Ltd. (NASDAQ:NICE) posted a 31% share price gain. NICE’s revenues and earnings outstripped expectations and management’s initial fiscal year guidance was also better than expected. The company was winning new business and seeing adoption of its GenAI tools among its customers.”
A data scientist sitting in front of a monitor to review the performance of AI-driven digital business solutions.
NICE Ltd. (NASDAQ:NICE) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held NICE Ltd. (NASDAQ:NICE) at the end of the first quarter which was 26 in the previous quarter. In the first quarter of 2024, NICE Ltd. (NASDAQ:NICE) reported $659 million in total revenues, which reflects the high end of the guidance range and represents a 15% increase from Q1 2023. While we acknowledge the potential of NICE Ltd. (NASDAQ:NICE) 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 discussed NICE Ltd. (NASDAQ:NICE) in another article and shared Vulcan Value Partners’ views on the company. In addition, please check out our hedge fund investor letters Q1 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.
