TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter the fund returned -1.59% (gross) and -1.83% (net), compared to a -2.92% return for the Russell 2000 Growth Index. The equity markets performed well in the second quarter, as long as one held only a handful of the biggest, fastest-growing U.S. stocks. Despite profitability turning positive this quarter following negative or neutral results in previous quarters, momentum remained the most important component in the worldwide market. In addition, please check the fund’s top five holdings to know its best picks in 2024.
TimesSquare Capital Management U.S. Small Cap Growth Strategy highlighted stocks like Smartsheet Inc. (NYSE:SMAR) in the second quarter 2024 investor letter. Smartsheet Inc. (NYSE:SMAR) offers an enterprise platform to plan, capture, manage, automate, and report on work for teams and organizations. The one-month return of Smartsheet Inc. (NYSE:SMAR) was 4.12%, and its shares gained 26.24% of their value over the last 52 weeks. On September 17, 2024, Smartsheet Inc. (NYSE:SMAR) stock closed at $51.77 per share with a market capitalization of $7.193 billion.
TimesSquare Capital Management U.S. Small Cap Growth Strategy stated the following regarding Smartsheet Inc. (NYSE:SMAR) in its Q2 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 closely tie to increasing shares of corporate IT budgets. Smartsheet Inc. (NYSE:SMAR) offers an enterprise platform to plan, capture, manage, automate, and report on work for teams and organizations. They reported a strong quarter with upsides to revenues, subscriptions, and free cash flow. Smartsheet is simplifying its pricing model by collapsing creator and editor license types into a singular member license. Product innovation appears to be gaining traction with new user interfaces and Generative AI tools. These positive developments served to lift Smartsheet by 14%.”
An executive in suit presenting a large touch screen of the company’s cloud-based enterprise platform.
Smartsheet Inc. (NYSE:SMAR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held Smartsheet Inc. (NYSE:SMAR) at the end of the second quarter which was 51 in the previous quarter. While we acknowledge the potential of Smartsheet Inc. (NYSE:SMAR) 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 Smartsheet Inc. (NYSE:SMAR) and shared the list of best small-cap tech stocks to buy. In its Q2 2024 investor letter, Brown Capital Management Small Company Fund discussed Smartsheet Inc.’s (NYSE:SMAR) AI advantage, even in a slow market. 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.