TimesSquare Capital Management, an equity investment management company, released its “U.S. SMID Cap Growth Strategy” third-quarter investor letter. The same can be downloaded here. In the third quarter, the U.S. SMID Cap Growth Composite fell -2.65% (gross) and -2.89% (net) compared to the Russell 2500 Growth Index’s -6.84% decline. This quarter, the small-to-mid-cap growth stocks that performed better had lower betas or higher returns on equity. Stocks that lacked short-term earnings or had exorbitant valuations (as measured by price/earnings) were penalized. In the third quarter, the portfolio beat the Russell 2500 Growth Index in this setting. In addition, please check the fund’s top five holdings to know its best picks in 2023.
TimesSquare Capital U.S. SMID Cap Growth Strategy highlighted stocks like Phreesia, Inc. (NYSE:PHR) in the third quarter 2023 investor letter. Headquartered in Wilmington, Delaware, Phreesia, Inc. (NYSE:PHR) is an integrated SaaS-based software and payment platform provider for the healthcare sector. On December 26, 2023, Phreesia, Inc. (NYSE:PHR) stock closed at $22.73 per share. One-month return of Phreesia, Inc. (NYSE:PHR) was 43.05%, and its shares lost 29.74% of their value over the last 52 weeks. Phreesia, Inc. (NYSE:PHR) has a market capitalization of $1.265 billion.
TimesSquare Capital U.S. SMID Cap Growth Strategy made the following comment about Phreesia, Inc. (NYSE:PHR) in its Q3 2023 investor letter:
“Our preferences among Health Care stocks are those companies providing novel therapies for unmet needs that deserve premium pricing, or specialized service providers. There also were challenges for Phreesia, Inc. (NYSE:PHR), a cloud-based platform for practice management and electronic health records. The company’s recent revenues were as anticipated although its earnings bested expectations. Some investors believed a meaningful portion of the revenues were pulled forward from future periods or doubted that revenues will grow at a fast enough pace to meet Phreesia’s 2025 targets; that pressured its shares by -40% this quarter. From our evaluations and discussions with the company, we found the current revenue growth was steadily increasing and that the company was preparing both new products and price increases.”
A female doctor using the latest healthcare IT technology in her medical practice.
Phreesia, Inc. (NYSE:PHR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Phreesia, Inc. (NYSE:PHR) at the end of third quarter which was 20 in the previous quarter.
We discussed Phreesia, Inc. (NYSE:PHR) in another article and shared Conestoga Capital Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q3 2023 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.
