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 Vertex, Inc. (NASDAQ:VERX), in the second quarter 2024 investor letter. Vertex, Inc. (NASDAQ:VERX) offers enterprise tax technology solutions for retail trade, wholesale trade, and manufacturing industries. The one-month return of Vertex, Inc. (NASDAQ:VERX) was 1.09%, and its shares gained 69.50% of their value over the last 52 weeks. On September 17, 2024, Vertex, Inc. (NASDAQ:VERX) stock closed at $36.12 per share with a market capitalization of $5.617 billion.
TimesSquare Capital Management U.S. Small Cap Growth Strategy stated the following regarding Vertex, Inc. (NASDAQ:VERX) in its Q2 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 closely tie to increasing shares of corporate IT budgets. Vertex, Inc. (NASDAQ:VERX) provides enterprise tax technology solutions for retail trade, wholesale trade, and manufacturing industries. Its stock gained 14% after reporting solid results, with revenues and profits ahead of estimates as their customer success and cross-selling efforts are paying dividends. Management maintained full-year guidance.”
A finance executive overseeing the implementation of a tax solution.
Vertex, Inc. (NASDAQ:VERX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held Vertex, Inc. (NASDAQ:VERX) at the end of the second quarter which was 22 in the previous quarter. Vertex, Inc.’s (NASDAQ:VERX) second quarter revenue was $161.1 million, up 15.3% year-over-year. While we acknowledge the potential of Vertex, Inc. (NASDAQ:VERX) 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 Vertex, Inc. (NASDAQ:VERX) and shared TimesSquare Capital U.S. Small Cap Growth Strategy’s views on the company in the previous quarter. 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.
