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 Addus HomeCare Corporation (NASDAQ:ADUS), in the third quarter 2024 investor letter. Addus HomeCare Corporation (NASDAQ:ADUS) offers personal care services to elderly, chronically ill, disabled persons, and individuals who are at risk of hospitalization. The one-month return of Addus HomeCare Corporation (NASDAQ:ADUS) was -5.73%, and its shares gained 31.11% of their value over the last 52 weeks. On December 5, 2024, Addus HomeCare Corporation (NASDAQ:ADUS) stock closed at $120.27 per share with a market capitalization of $2.181 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Addus HomeCare Corporation (NASDAQ:ADUS) in its Q3 2024 investor letter:
“Our preferences among Health Care stocks are those companies providing novel therapies for unmet needs that deserve premium pricing, or specialized service providers. Here we benefited from the 14% return from Addus HomeCare Corporation (NASDAQ:ADUS), a comprehensive provider of non-clinical home and community-based care services. Its revenues and earnings edged ahead of expectations following strong revenues from its personal care and home health operations, which offset lower hospice activities.”
A nurse providing hospice care in a home setting, reassuring a patient’s family members.
Addus HomeCare Corporation (NASDAQ:ADUS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Addus HomeCare Corporation (NASDAQ:ADUS) at the end of the third quarter which was 29 in the previous quarter. Addus HomeCare Corporation’s (NASDAQ:ADUS) total revenue for the third quarter of 2024 was $289.8 million, an increase of 7% from previous year’s quarter. While we acknowledge the potential of Addus HomeCare Corporation (NASDAQ:ADUS) 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 Addus HomeCare Corporation (NASDAQ:ADUS) and shared TimesSquare Capital Management U.S. Small Cap Growth Strategy’s views on the company in the previous quarter. 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.