TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” third-quarter investor letter. A copy of the letter can be downloaded here. Within equities, smaller or value-oriented stocks in developed economies yielded higher, whereas emerging markets saw the opposite trend. In the third quarter, the strategy returned 4.96% (gross) and 4.75% (net) while the Russell Midcap Growth Index returned 6.54%. 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 Regal Rexnord Corporation (NYSE:RRX), in the third quarter 2024 investor letter. Regal Rexnord Corporation (NYSE:RRX) is a global manufacturer of industrial powertrain solutions, power transmission components, electric motors and electronic controls, air-moving products, and specialty electrical components and systems. The one-month return of Regal Rexnord Corporation (NYSE:RRX) was -3.32%, and its shares gained 30.64% of their value over the last 52 weeks. On December 6, 2024, Regal Rexnord Corporation (NYSE:RRX) stock closed at $170.45 per share with a market capitalization of $11.29 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Regal Rexnord Corporation (NYSE:RRX) in its Q3 2024 investor letter:
“Regal Rexnord Corporation (NYSE:RRX) specializes in motion control systems, climate solutions, and similar mechanical components for a variety of end markets. Their shares were up 23% despite a mixed earnings report. While their second quarter was strong, management lowered guidance to account for a softer second half ramp in the Automation & Motion Control segment, though that was generally expected by investors heading into the quarter. Aerospace, data center, and medical markets all remain solid.”
A technician inspecting a specialized industrial machinery in an engineering lab.
Regal Rexnord Corporation (NYSE:RRX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Regal Rexnord Corporation (NYSE:RRX) at the end of the third quarter which was 32 in the previous quarter. While we acknowledge the potential of Regal Rexnord Corporation (NYSE:RRX) 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 Regal Rexnord Corporation (NYSE:RRX) and shared Diamond Hill Mid Cap Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.