TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” first-quarter investor letter. A copy of the letter can be downloaded here. In the first quarter, the strategy returned 11.72% (gross) and 11.49% (net) compared to 9.50% for the Russell Midcap Growth Index. The first-quarter performance was barbelled, particularly for U.S. small- to mid-cap equities. The best-performing stocks were those with the highest quality (return on equity) or low valuations (price/earnings). Stocks with higher risk (beta) or stocks with hyper-growth expectations were also rewarded. 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 RenaissanceRe Holdings Ltd. (NYSE:RNR), in the first quarter 2024 investor letter. RenaissanceRe Holdings Ltd. (NYSE:RNR) is a reinsurance and insurance products provider. The one-month return of RenaissanceRe Holdings Ltd. (NYSE:RNR) was -1.92%, and its shares gained 20.37% of their value over the last 52 weeks. On June 21, 2024, RenaissanceRe Holdings Ltd. (NYSE:RNR) stock closed at $224.27 per share with a market capitalization of $11.859 billion.
TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding RenaissanceRe Holdings Ltd. (NYSE:RNR) in its first quarter 2024 investor letter:
“Earnings for RenaissanceRe Holdings outstripped expectations as RenaissanceRe Holdings Ltd. (NYSE:RNR) showed better rates of underwriting, higher fee income, and increased investment income—all of which also exceeded levels of industry peers. Pricing also appeared to remain strong for this year and into 2025, and the result lifted RenRe’s shares by 20%.”
A top-view of a large city skyline, exemplifying the power and the protection of a reinsurance company.
RenaissanceRe Holdings Ltd. (NYSE:RNR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held RenaissanceRe Holdings Ltd. (NYSE:RNR) at the end of the first quarter which was 35 in the previous quarter. While we acknowledge the potential of RenaissanceRe Holdings Ltd. (NYSE:RNR) 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.
We discussed RenaissanceRe Holdings Ltd. (NYSE:RNR) in another article and shared the list of ridiculously cheap stocks to buy and hold for the long term. In the Q4 2023 investor letter, TimesSquare Capital Management discussed RenaissanceRe Holdings Ltd. (NYSE:RNR), which declined by 1% due to lower-than-expected premium growth. In addition, please check out our hedge fund investor letters Q1 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.
