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 Driven Brands Holdings Inc. (NASDAQ:DRVN) in the second quarter 2024 investor letter. Headquartered in Charlotte, North Carolina, Driven Brands Holdings Inc. (NASDAQ:DRVN) offers automotive services to retail and commercial customers. The one-month return of Driven Brands Holdings Inc. (NASDAQ:DRVN) was 2.47%, and its shares gained 8.13% of their value over the last 52 weeks. On September 17, 2024, Driven Brands Holdings Inc. (NASDAQ:DRVN) stock closed at $14.50 per share with a market capitalization of $2.379 billion.
TimesSquare Capital Management U.S. Small Cap Growth Strategy stated the following regarding Driven Brands Holdings Inc. (NASDAQ:DRVN) in its Q2 2024 investor letter:
“Many of our Industrial positions provide necessary business-to-business operational services, highly technical components, automation & efficiency improvements, or essential infrastructure services. Driven Brands Holdings Inc. (NASDAQ:DRVN) provides automotive services including paint, collision, glass, repair, car wash, oil change, and maintenance services. Their first quarter profits and earnings beat consensus estimates while revenues on slowing same store comparisons in the car wash and glass business. These results were overshadowed by the sudden news of their CFO leaving the company for an opportunity with a private enterprise that is based closer to his family home in Colorado. We decided to liquidate Driven Brands, which lost -29% from its share price during the quarter.”
A busy auto service bay with technicians servicing a car.
Driven Brands Holdings Inc. (NASDAQ:DRVN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Driven Brands Holdings Inc. (NASDAQ:DRVN) at the end of the second quarter which was 23 in the previous quarter. In the second quarter, Driven Brands Holdings Inc. (NASDAQ:DRVN) revenue was $612 million, up 1% from Q2 2023. While we acknowledge the potential of Driven Brands Holdings Inc. (NASDAQ:DRVN) 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 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.
