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 Treace Medical Concepts, Inc. (NASDAQ:TMCI), in the second quarter 2024 investor letter. Treace Medical Concepts, Inc. (NASDAQ:TMCI) is a US-based medical technology company. The one-month return of Treace Medical Concepts, Inc. (NASDAQ:TMCI) was -17.30%, and its shares lost 63.87% of their value over the last 52 weeks. On September 17, 2024, Treace Medical Concepts, Inc. (NASDAQ:TMCI) stock closed at $5.21 per share with a market capitalization of $324.012 million.
TimesSquare Capital Management U.S. Small Cap Growth Strategy stated the following regarding Treace Medical Concepts, Inc. (NASDAQ:TMCI) in its Q2 2024 investor letter:
“Our preferences among Health Care stocks are those companies providing novel therapies for unmet needs that deserve premium pricing, or specialized service providers. Treace Medical Concepts, Inc. (NASDAQ:TMCI) designs and manufactures medical devices offering an innovative approach to corrective bunion surgery. While the first quarter earnings were solid, they surprised investors by reducing forward revenue guidance due to competitive dynamics driven by knock-off medical devices. This disappointed us and other investors. We decided to exit the position which lost -60% while held during the quarter.”
A surgeon in an operating room with an orthopeadic medical device ready for use in bunion treatment.
Treace Medical Concepts, Inc. (NASDAQ:TMCI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Treace Medical Concepts, Inc. (NASDAQ:TMCI) at the end of the second quarter which was 20 in the previous quarter. In the second quarter, Treace Medical Concepts, Inc. (NASDAQ:TMCI) reported $44.5 million in revenues, representing a 6% year-over-year increase. While we acknowledge the potential of Treace Medical Concepts, Inc. (NASDAQ:TMCI) 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 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.