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 Victory Capital Holdings, Inc. (NASDAQ:VCTR), in the second quarter 2024 investor letter. Victory Capital Holdings, Inc. (NASDAQ:VCTR) is an asset management company that offers investment advisory, fund administration, fund compliance, fund transfer agent, fund distribution, and other management services. The one-month return of Victory Capital Holdings, Inc. (NASDAQ:VCTR) was 3.66%, and its shares gained 62.40% of their value over the last 52 weeks. On September 16, 2024, Victory Capital Holdings, Inc. (NASDAQ:VCTR) stock closed at $53.39 per share with a market capitalization of $3.53 billion.
TimesSquare Capital Management U.S. Small Cap Growth Strategy stated the following regarding Victory Capital Holdings, Inc. (NASDAQ:VCTR) in its Q2 2024 investor letter:
“In the Financials sector we tend to avoid banks that face credit deterioration or rising deposit costs, preferring asset managers, niche insurance companies, and niche fintech providers. Victory Capital Holdings, Inc. (NASDAQ:VCTR) operates as an asset management company. During the quarter, the company announced a memorandum of understanding to acquire the U.S. asset management operations of Amundi in exchange for a 26% economic interest in Victory and a 15-year distribution partnership agreement. Amundi brings $104 billion of assets under management and the distribution partnership will broaden Victory’s international ambitions. This deal, which is expected to close at the end of 2024, was well received by the market as its stock price was lifted by 13%.”
An experienced financial analyst working on a laptop in a modern office setting.
Victory Capital Holdings, Inc. (NASDAQ:VCTR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Victory Capital Holdings, Inc. (NASDAQ:VCTR) at the end of the second quarter which was 22 in the previous quarter. While we acknowledge the potential of Victory Capital Holdings, Inc. (NASDAQ:VCTR) 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 Victory Capital Holdings, Inc. (NASDAQ:VCTR) and shared Merion Road Capital Management’s views on the company. Victory Capital Holdings, Inc. (NASDAQ:VCTR) contributed to the performance of TimesSquare Capital Management U.S. Small Cap Growth Strategy in the previous quarter as well. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
