TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the strategy returned 0.08% (gross) and -0.13% (net) compared to -3.21% for the Russell Midcap Growth Index. The equity markets performed well in the second quarter, as long as one held only a small number of the biggest, fastest-growing U.S. stocks (i.e., the Magnificent Seven). In addition, please check the fund’s top five holdings to know its best picks in 2024.
TimesSquare Capital Management U.S. Focus Growth Strategy highlighted stocks like Palo Alto Networks, Inc. (NASDAQ:PANW) in the second quarter 2024 investor letter. Palo Alto Networks, Inc. (NASDAQ:PANW) is a global cybersecurity solutions provider. The one-month return of Palo Alto Networks, Inc. (NASDAQ:PANW) was -0.44%, and its shares gained 39.03% of their value over the last 52 weeks. On September 11, 2024, Palo Alto Networks, Inc. (NASDAQ:PANW) stock closed at $341.77 per share with a market capitalization of $111.28 billion.
TimesSquare Capital Management U.S. Focus Growth Strategy stated the following regarding Palo Alto Networks, Inc. (NASDAQ:PANW) in its Q2 2024 investor letter:
“Our cybersecurity holdings were also beneficial to the strategy this quarter. The global provider of network and cloud-based cybersecurity systems, Palo Alto Networks, Inc. (NASDAQ:PANW), chipped in with a 19% return. Its revenues and earnings were higher than anticipated as Palo Alto shifted its marketing strategy to emphasize larger platform contracts.”
A cutting-edge computer lab full of IT experts monitoring the security of multiple systems.
Palo Alto Networks, Inc. (NASDAQ:PANW) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held Palo Alto Networks, Inc. (NASDAQ:PANW) at the end of the second quarter which was 78 in the previous quarter. In the fiscal fourth quarter, Palo Alto Networks, Inc.’s (NASDAQ:PANW) total revenue increased 12% year-over-year to $2.19 billion, exceeding expectations. While we acknowledge the potential of Palo Alto Networks, Inc. (NASDAQ:PANW) 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 Palo Alto Networks, Inc. (NASDAQ:PANW) and shared the list of AI stocks Billionaire Stanley Druckenmiller is buying and selling. In addition, please check out our hedge fund investor letters Q2 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.
