TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the strategy returned 3.90% (gross) and 3.69% (net) compared to 6.54% for the Russell Midcap Growth Index. The third quarter was stable for global markets, with most equity and credit markets achieving mid-to-high single-digit returns. Economic activity showed consistency, and energy prices fell; however, rising tensions in the Middle East have recently started to change this situation. In addition, please check the fund’s top five holdings to know its best picks in 2024.
TimesSquare Capital U.S. Focus Growth Strategy highlighted stocks like O’Reilly Automotive, Inc. (NASDAQ:ORLY) in the third quarter 2024 investor letter. O’Reilly Automotive, Inc. (NASDAQ:ORLY) is a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories. The one-month return of O’Reilly Automotive, Inc. (NASDAQ:ORLY) was 7.04%, and its shares gained 27.73% of their value over the last 52 weeks. On November 27, 2024, O’Reilly Automotive, Inc. (NASDAQ:ORLY) stock closed at $1,244.01 per share with a market capitalization of $71.818 billion.
TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding O’Reilly Automotive, Inc. (NASDAQ:ORLY) in its Q3 2024 investor letter:
“O’Reilly Automotive, Inc. (NASDAQ:ORLY), a specialty retailer of aftermarket auto parts and accessories, rose 9%. The company reported weaker-than-expected second quarter results, which management attributed to a soft demand environment. Wet spring weather and budget-conscious consumers impacted the do-it-yourself segment. However, their professional mechanic/do-it-for-me business was stable and in line with Street estimates. O’Reilly has reduced variable costs without sacrificing service levels.”
A mechanic working on a car in an auto shop, skillfully replacing the aftermarket parts.
O’Reilly Automotive, Inc. (NASDAQ:ORLY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held O’Reilly Automotive, Inc. (NASDAQ:ORLY) at the end of the third quarter which was 52 in the previous quarter. While we acknowledge the potential of O’Reilly Automotive, Inc. (NASDAQ:ORLY) 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 O’Reilly Automotive, Inc. (NASDAQ:ORLY) and shared Wells Fargo’s top growth stocks and the stocks with the highest consensus EPS growth estimates. ClearBridge Large Cap Value Strategy initiated a position in O’Reilly Automotive, Inc. (NASDAQ:ORLY) during Q3 2024, considering its favorable valuation. 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.