TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter the fund returned 6.50% (gross) and 6.24% (net), compared to an 8.41% return for the Russell 2000 Growth Index. Global markets performed fairly in the third quarter, with the majority of credit and stock markets reporting returns in the mid- to high single-digit range. Energy costs decreased and economic activity indicators remained steady, but recent increases in Middle East tensions started to reverse that. Smaller or value-oriented stocks in developed economies yielded higher returns in the equity space, whereas emerging markets saw the opposite trend. Beta was one of the most powerful variables in global equities this quarter, following a poor first half of 2024. In addition, please check the fund’s top five holdings to know its best picks in 2024.
TimesSquare Capital U.S. Small Cap Growth Strategy highlighted stocks like Clearwater Analytics Holdings, Inc. (NYSE:CWAN) in the Q3 2024 investor letter. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is a technology company that develops and provides a Software-as-a-Service (SaaS) solution. The one-month return of Clearwater Analytics Holdings, Inc. (NYSE:CWAN) was -6.14%, and its shares gained 55.53% of their value over the last 52 weeks. On December 5, 2024, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) stock closed at $29.94 per share with a market capitalization of $7.404 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Clearwater Analytics Holdings, Inc. (NYSE:CWAN) in its Q3 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 are growing their shares of corporate IT budgets. We trimmed our position in Clearwater Analytics Holdings, Inc. (NYSE:CWAN) as its shares climbed by 35%. A cloud-based investment accounting and analytics provider to insurers, asset managers, and corporate treasury departments, Clearwater’s revenues and earnings exceeded expectations. Margins and levels of annual recurring revenue each improved as Clearwater saw high levels of cross selling of its expanded product line to existing clients. That led management to lift guidance for the rest of 2024.”
A wide shot of a large financial data center.
Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Clearwater Analytics Holdings, Inc. (NYSE:CWAN) at the end of the third quarter which was 20 in the previous quarter. Clearwater Analytics Holdings, Inc.’s (NYSE:CWAN) revenue for the third quarter was $115.8 million, representing a 22.4% year-on-year increase. While we acknowledge the potential of Clearwater Analytics Holdings, Inc. (NYSE:CWAN) 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 Clearwater Analytics Holdings, Inc. (NYSE:CWAN) and shared Polen Global SMID Company Growth’s views on the company. 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.