TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” second-quarter investor letter. A copy of the same can be downloaded here. The equity markets performed well in the second quarter, as long as one held only a small number of the biggest, fastest-growing U.S. stocks. Given the Magnificent Seven’s superior performance, differences in growth and value among large caps were downplayed. There wasn’t much style diversity between mid-caps, small caps, or outside the U.S. In the second quarter, the strategy returned -2.94% (gross) and -3.14% (net) while the Russell Midcap Growth Index returned -3.21%. 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 GFL Environmental Inc. (NYSE:GFL), in the second quarter 2024 investor letter. GFL Environmental Inc. (NYSE:GFL) offers non-hazardous solid waste management and environmental services. The one-month return of GFL Environmental Inc. (NYSE:GFL) was -2.21%, and its shares gained 19.25% of their value over the last 52 weeks. On September 12, 2024, GFL Environmental Inc. (NYSE:GFL) stock closed at $40.26 per share with a market capitalization of $15.159 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding GFL Environmental Inc. (NYSE:GFL) in its Q2 2024 investor letter:
“Many of our Industrials positions provide necessary business-to-business operational services, highly technical components, automation & efficiency improvements, or essential infrastructure services. Shares in GFL Environmental Inc. (NYSE:GFL) picked up by 13%. Late in the quarter, an activist investor renewed its call for a strategic review of all options, including a private sale for this handler of non-hazardous waste, soil remediation, and other environmental services. In our discussions with GFL’s management, we believe such a transaction is unrealistic, though we did trim our position following that price run.”
An excavator at a landfill site operating amidst a pile of solid waste.
GFL Environmental Inc. (NYSE:GFL) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held GFL Environmental Inc. (NYSE:GFL) at the end of the second quarter which was 31 in the previous quarter. GFL Environmental Inc. (NYSE:GFL) generated $2.06 billion in revenues in the second quarter, up 11.1% year-over-year, excluding the impact of the solid waste divestitures. While we acknowledge the potential of GFL Environmental Inc. (NYSE:GFL) 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 GFL Environmental Inc. (NYSE:GFL) and shared the list of biggest waste management companies in the world. 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.
