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 FormFactor, Inc. (NASDAQ:FORM) in its Q2 2024 investor letter. FormFactor, Inc. (NASDAQ:FORM) manufactures and sells probe cards, analytical probes, probe stations, metrology systems, thermal systems, and cryogenic systems to semiconductor companies and scientific institutions. The one-month return of FormFactor, Inc. (NASDAQ:FORM) was -15.10%, and its shares gained 27.86% of their value over the last 52 weeks. On September 17, 2024, FormFactor, Inc. (NASDAQ:FORM) stock closed at $43.14 per share with a market capitalization of $3.339 billion.
TimesSquare Capital Management U.S. Small Cap Growth Strategy stated the following regarding FormFactor, Inc. (NASDAQ:FORM) 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. FormFactor, Inc. (NASDAQ:FORM) offers probe cards to test semiconductors. Its shares jumped 33% on the combination of a solid quarter along with second quarter guidance well ahead of Street projections. This stems from high bandwidth memory (HBM) and as well as foundry & logic demand for probe cards. HBM is fueled by AI spending while foundry & logic is tied to new microprocessor design ramps.”
A technician soldering a cryogenic amplifier in a laboratory environment.
FormFactor, Inc. (NASDAQ:FORM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held FormFactor, Inc. (NASDAQ:FORM) at the end of the second quarter which was 19 in the previous quarter. In the second quarter, FormFactor, Inc. (NASDAQ:FORM) reported $197.5 million in revenues a 17% increase from Q1 2024 and a 26.7% increase from Q2 2023. While we acknowledge the potential of FormFactor, Inc. (NASDAQ:FORM) 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 FormFactor, Inc. (NASDAQ:FORM) and shared Madison Small Cap Fund’s views on the company. 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.