TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter the fund returned 6.50% (gross) and 6.24% (net), compared to an 8.41% return for the Russell 2000 Growth Index. Global markets performed fairly in the third quarter, with the majority of credit and stock markets reporting returns in the mid- to high single-digit range. Energy costs decreased and economic activity indicators remained steady, but recent increases in Middle East tensions started to reverse that. Smaller or value-oriented stocks in developed economies yielded higher returns in the equity space, whereas emerging markets saw the opposite trend. Beta was one of the most powerful variables in global equities this quarter, following a poor first half of 2024. In addition, please check the fund’s top five holdings to know its best picks in 2024.
TimesSquare Capital U.S. Small Cap Growth Strategy highlighted stocks like Cactus, Inc. (NYSE:WHD), in the third quarter 2024 investor letter. Cactus, Inc. (NYSE:WHD) designs and manufactures pressure control and spoolable pipes. The one-month return of Cactus, Inc. (NYSE:WHD) was -1.53%, and its shares gained 59.53% of their value over the last 52 weeks. On December 5, 2024, Cactus, Inc. (NYSE:WHD) stock closed at $66.19 per share with a market capitalization of $5.27 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Cactus, Inc. (NYSE:WHD) in its Q3 2024 investor letter:
“Often the Energy sector moves in lockstep with the underlying commodity prices. Here we aim to find companies that either are low-cost exploration and production companies with high yielding fields, or specialized service providers. Gaining 14% was Cactus, Inc. (NYSE:WHD), a provider of onshore wellhead and pressure control equipment for oil drilling. Initially, Cactus benefited from the perception that the outcome of the U.S. Presidential election might bolster drilling activity. In addition, we expect stronger fundamentals in the near-term–Cactus’s non-U.S. operations were growing to become a larger portion of overall revenues—though we trimmed the position on its rise.”
An oil and gas engineer looking at a production tree, inspecting its pressure control equipment.
Cactus, Inc. (NYSE:WHD) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Cactus, Inc. (NYSE:WHD) at the end of the third quarter which was 12 in the previous quarter. In the third quarter, Cactus, Inc. (NYSE:WHD) generated $293 million in revenues, up 1% sequentially. While we acknowledge the potential of Cactus, Inc. (NYSE:WHD) 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 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.