TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the strategy returned 3.90% (gross) and 3.69% (net) compared to 6.54% for the Russell Midcap Growth Index. The third quarter was stable for global markets, with most equity and credit markets achieving mid-to-high single-digit returns. Economic activity showed consistency, and energy prices fell; however, rising tensions in the Middle East have recently started to change this situation. In addition, please check the fund’s top five holdings to know its best picks in 2024.
TimesSquare Capital U.S. Focus Growth Strategy highlighted stocks like Teradyne, Inc. (NASDAQ:TER), in the third quarter 2024 investor letter. Teradyne, Inc. (NASDAQ:TER) manufactures and distributes automated test systems and robotics products. The one-month return of Teradyne, Inc. (NASDAQ:TER) was -1.27%, and its shares gained 16.53% of their value over the last 52 weeks. On November 27, 2024, Teradyne, Inc. (NASDAQ:TER) stock closed at $108.09 per share with a market capitalization of $17.604 billion.
TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Teradyne, Inc. (NASDAQ:TER) in its Q3 2024 investor letter:
“Teradyne, Inc. (NASDAQ:TER) develops and manufactures automated test systems and robotics products worldwide. Solid second quarter results were driven by higher spending levels in computer and memory. Mobile, auto, and industrial spending remained soft. Management’s forward guidance was weaker-than-expected and that caused their stock to sell off by -10%.”
A robotic arm holding an optical component as it is being manufactured in a high-tech facility.
Teradyne, Inc. (NASDAQ:TER) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Teradyne, Inc. (NASDAQ:TER) at the end of the third quarter which was 41 in the previous quarter. In the third quarter, Teradyne, Inc.’s (NASDAQ:TER) sales totaled $737 million, which was at the top end of projected guidance. While we acknowledge the potential of Teradyne, Inc. (NASDAQ:TER) 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 Teradyne, Inc. (NASDAQ:TER) and shared the list of most promising robotics stocks according to hedge funds. Teradyne, Inc. (NASDAQ:TER) contributed positively to the performance of TimesSquare Capital Management’s U.S. Focus Growth Strategy 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.