TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter the fund returned 5.77% (net), compared to a 7.58% return for the Russell 2000 Growth Index. Despite a decline in many equity markets in January, they rebounded over the following two months, resulting in a robust 2024 first quarter. 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 Vertex, Inc. (NASDAQ:VERX), in the first 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 2.34%, and its shares gained 82.01% of their value over the last 52 weeks. On June 20, 2024, Vertex, Inc. (NASDAQ:VERX) stock closed at $34.49 per share with a market capitalization of $5.35 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Vertex, Inc. (NASDAQ:VERX) in its first quarter 2024 investor letter:
“Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, and systems that improve productivity or efficiency for their clients. Vertex, Inc. (NASDAQ:VERX) supplies tax technology solutions for retail, communications, leasing, retail trade, technology, and manufacturing industries. This company reported strong fourth quarter results with total revenues, cloud subscription revenue, annualized recurring revenues, and profits ahead of Street projections. Full year 2024 guidance was also well ahead of expectations. These factors boosted its shares by 18%.”
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, 22 hedge fund portfolios held Vertex, Inc. (NASDAQ:VERX) at the end of the first quarter which was 15 in the previous quarter. 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 the list of fastest growing fintech companies in 2024. In the third quarter 2023 investor letter, TimesSquare Capital U.S. Small Cap Growth Strategy commented on Vertex, Inc. (NASDAQ:VERX), noting that the stock rose due to better-than-anticipated results. In addition, please check out our hedge fund investor letters Q1 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.
