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 Wyndham Hotels & Resorts, Inc. (NYSE:WH), in the third quarter 2024 investor letter. Wyndham Hotels & Resorts, Inc. (NYSE:WH) is a hotel franchisor under the Wyndham brand. The one-month return of Wyndham Hotels & Resorts, Inc. (NYSE:WH) was 6.21%, and its shares gained 30.08% of their value over the last 52 weeks. On December 5, 2024, Wyndham Hotels & Resorts, Inc. (NYSE:WH) stock closed at $101.88 per share with a market capitalization of $7.925 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Wyndham Hotels & Resorts, Inc. (NYSE:WH) in its Q3 2024 investor letter:
“New to the strategy was Wyndham Hotels & Resorts, Inc. (NYSE:WH), one of the world’s largest hotel franchising companies with a variety of midscale or economy brands and partners. Operating in secondary or tertiary markets, Wyndham focuses on leisure travelers in spots with sparse competition. Its franchise model limits the need for capital spending or significant debt.”
A traveler walking along a white-sand beach, a luxury resort in the background.
Wyndham Hotels & Resorts, Inc. (NYSE:WH) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Wyndham Hotels & Resorts, Inc. (NYSE:WH) at the end of the third quarter which was 26 in the previous quarter. Year-to-date, Wyndham Hotels & Resorts, Inc. (NYSE:WH) generated over $265 million in adjusted free cash flow and returned nearly $380 million to shareholders. While we acknowledge the potential of Wyndham Hotels & Resorts, Inc. (NYSE:WH) 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 Wyndham Hotels & Resorts, Inc. (NYSE:WH) and shared cheap travel stocks to buy according to analysts. 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.