TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” third-quarter investor letter. A copy of the same can be downloaded here. In the quarter the fund returned -3.67% (net), compared to -7.32% return for the Russell 2000 Growth Index. Year-to-date the fund returned 11.56% (net) compared to 9.59% return for the index. The third quarter saw a decline in global equities markets, but they remained positive YTD. Value has generally outperformed Growth, as demonstrated by the style factors and market indexes. In addition, please check the fund’s top five holdings to know its best picks in 2023.
TimesSquare Capital U.S. Small Cap Growth Strategy highlighted stocks like Allegro MicroSystems, Inc. (NASDAQ:ALGM) in the third quarter 2023 investor letter. Headquartered in Manchester, New Hampshire, Allegro MicroSystems, Inc. (NASDAQ:ALGM) manufactures and markets sensor integrated circuits (ICs) and application-specific analog power ICs. On December 6, 2023, Allegro MicroSystems, Inc. (NASDAQ:ALGM) stock closed at $26.32 per share. One-month return of Allegro MicroSystems, Inc. (NASDAQ:ALGM) was 5.87%, and its shares lost 19.26% of their value over the last 52 weeks. Allegro MicroSystems, Inc. (NASDAQ:ALGM) has a market capitalization of $5.066 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy made the following comment about Allegro MicroSystems, Inc. (NASDAQ:ALGM) in its Q3 2023 investor letter:
“Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, and systems that improve productivity or efficiency for their clients. One blemish in the sector was Allegro MicroSystems, Inc. (NASDAQ:ALGM), which develops semiconductor magnetic sensors and power management chips. In July, we trimmed our position as its shares rallied ahead of its quarterly report. Then in August, Allegro reported better-than-anticipated results and increased its near-term guidance. However, on the earnings call its management seemed more cautious with the outlook, especially related to volatility for its sales in China, and Allegro’s shares pulled back by -30%. Speaking with management later, we gained a better sense of short-term concerns with China—that comprise less than a quarter of Allegro’s business—and the expected rebound, so we added back to our position.”
A technician operating a robotic arm on a production line of semiconductor chips.
Allegro MicroSystems, Inc. (NASDAQ:ALGM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Allegro MicroSystems, Inc. (NASDAQ:ALGM)at the end of third quarter which was 26 in the previous quarter.
We discussed Allegro MicroSystems, Inc. (NASDAQ:ALGM) in another article and shared the list of best LiDAR stocks to buy. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 25 Best Bourbons in the World
- 12 Most Advanced Countries in Missile Technology
- 12 Most Expensive Coffees in the World
Disclosure: None. This article is originally published at Insider Monkey.
