TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” third-quarter investor letter. A copy of the letter can be downloaded here. Within equities, smaller or value-oriented stocks in developed economies yielded higher, whereas emerging markets saw the opposite trend. In the third quarter, the strategy returned 4.96% (gross) and 4.75% (net) while the Russell Midcap Growth Index returned 6.54%. In addition, please check the fund’s top five holdings to know its best picks in 2024.
TimesSquare Capital U.S. Mid Cap Growth Strategy highlighted stocks like Synopsys, Inc. (NASDAQ:SNPS), in the third quarter 2024 investor letter. Synopsys, Inc. (NASDAQ:SNPS) offers electronic design automation software products used to design and test integrated circuits. The one-month return of Synopsys, Inc. (NASDAQ:SNPS) was -8.59%, and its shares lost 10.33% of their value over the last 52 weeks. On December 9, 2024, Synopsys, Inc. (NASDAQ:SNPS) stock closed at $508.49 per share with a market capitalization of $78.364 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Synopsys, Inc. (NASDAQ:SNPS) in its Q3 2024 investor letter:
“Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, systems that improve productivity or efficiency for their clients, and others that are growing their shares of corporate IT budgets. Synopsys, Inc. (NASDAQ:SNPS) supplies electronic design automation software products used to design and test integrated circuits. Despite reporting solid fiscal third quarter earnings, management’s continued conservative guidance caused its stock to slide by -13%. We decided to exit the position in recognition of its elevated market capitalization.”
A close-up of a tech engineer soldering a modern system-on-chip circuit board in a laboratory setting.
Synopsys, Inc. (NASDAQ:SNPS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held Synopsys, Inc. (NASDAQ:SNPS) at the end of the third quarter which was 53 in the previous quarter. While we acknowledge the potential of Synopsys, Inc. (NASDAQ:SNPS) 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 Synopsys, Inc. (NASDAQ:SNPS) and shared Columbia Threadneedle Global Technology Growth Strategy’s views on the company. 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.