TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the strategy returned -1.35% (gross) and -1.56% (net) compared to 8.14% for the Russell Midcap Growth Index. In the fourth quarter, the U.S. small to mid-cap growth equities with the greatest valuation (P/E), lowest quality (return on equity), or highest risk (beta or volatility) provided the strongest gains. In this environment, the portfolio’s fourth-quarter performance fell short of the Russell Midcap® Growth Index, resulting in poor performance for the year. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, TimesSquare Capital Management U.S. Focus Growth Strategy emphasized stocks such as O’Reilly Automotive, Inc. (NASDAQ:ORLY). O’Reilly Automotive, Inc. (NASDAQ:ORLY) is a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories. The one-month return of O’Reilly Automotive, Inc. (NASDAQ:ORLY) was 9.32%, and its shares gained 29.02% of their value over the last 52 weeks. On April 3, 2025, O’Reilly Automotive, Inc. (NASDAQ:ORLY) stock closed at $1,441.89 per share with a market capitalization of $82.535 billion.
TimesSquare Capital Management U.S. Focus Growth Strategy stated the following regarding O’Reilly Automotive, Inc. (NASDAQ:ORLY) in its Q4 2024 investor letter:
“Our preferences in the Consumer-oriented sectors lean toward value-oriented or specialty retailers, franchise models, or premium brands. O’Reilly Automotive, Inc. (NASDAQ:ORLY) is a specialty retailer of aftermarket auto parts and accessories. While professional repair shop sales continue to be strong, broad-based consumer pressures resulted in a soft demand environment for the do-it-yourself category. Its 3% return lagged the index return of 8%. We trimmed the position over the quarter.”
A mechanic working on a car in an auto shop, skillfully replacing the aftermarket parts.
O’Reilly Automotive, Inc. (NASDAQ:ORLY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held O’Reilly Automotive, Inc. (NASDAQ:ORLY) at the end of the fourth quarter compared to 41 in the third quarter. While we acknowledge the potential of O’Reilly Automotive, Inc. (NASDAQ:ORLY) 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.
We covered O’Reilly Automotive, Inc. (NASDAQ:ORLY) in another article, where we shared the list of top stocks to buy according to Akre Capital Management. In addition, please check out our hedge fund investor letters Q4 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.