TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter the fund returned -1.59% (gross) and -1.83% (net), compared to a -2.92% return for the Russell 2000 Growth Index. The equity markets performed well in the second quarter, as long as one held only a handful of the biggest, fastest-growing U.S. stocks. Despite profitability turning positive this quarter following negative or neutral results in previous quarters, momentum remained the most important component in the worldwide market. In addition, please check the fund’s top five holdings to know its best picks in 2024.
TimesSquare Capital Management U.S. Small Cap Growth Strategy highlighted stocks like JFrog Ltd. (NASDAQ:FROG), in the second quarter 2024 investor letter. Incorporated in 2008, JFrog Ltd. (NASDAQ:FROG) provides an end-to-end hybrid software supply chain platform. The one-month return of JFrog Ltd. (NASDAQ:FROG) was 3.57%, and its shares gained 6.15% of their value over the last 52 weeks. On September 17, 2024, JFrog Ltd. (NASDAQ:FROG) stock closed at $28.12 per share with a market capitalization of $3.105 billion.
TimesSquare Capital Management U.S. Small Cap Growth Strategy stated the following regarding JFrog Ltd. (NASDAQ:FROG) in its Q2 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 closely tie to increasing shares of corporate IT budgets. JFrog Ltd. (NASDAQ:FROG) supplies end-to-end hybrid software supply chain services. We initially trimmed the position in advance of its first quarter earnings report due to elevated Street expectations. We then used its -15% share price weakness as an opportunity to add back somewhat to JFrog.”
A corporate executive standing in front of a large monitor, demonstrating the DevOps package repository.
JFrog Ltd. (NASDAQ:FROG) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held JFrog Ltd. (NASDAQ:FROG) at the end of the second quarter which was 40 in the previous quarter. In the second quarter JFrog Ltd. (NASDAQ:FROG) reported $103 million in revenues, up 22% year-over-year. While we acknowledge the potential of JFrog Ltd. (NASDAQ:FROG) 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 JFrog Ltd. (NASDAQ:FROG) and shared Next Century Growth Small Cap Strategy’s views on the company in the previous quarter. JFrog Ltd. (NASDAQ:FROG) contributed to the performance of TimesSquare Capital U.S. Small Cap Growth Strategy in the previous quarter. In addition, please check out our hedge fund investor letters Q2 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.