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 MVB Financial Corp. (NASDAQ:MVBF), in the second quarter 2024 investor letter. MVB Financial Corp. (NASDAQ:MVBF) is a bank holding company for MVB Bank, Inc that offers financial services to individuals and corporate clients. The one-month return of MVB Financial Corp. (NASDAQ:MVBF) was 5.61%, and its shares lost 5.00% of their value over the last 52 weeks. On September 17, 2024, MVB Financial Corp. (NASDAQ:MVBF) stock closed at $20.89 per share with a market capitalization of $270.97 million.
TimesSquare Capital Management U.S. Small Cap Growth Strategy stated the following regarding MVB Financial Corp. (NASDAQ:MVBF) 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. MVB Financial Corp. (NASDAQ:MVBF) provides financial services to individuals and corporate clients. Its first quarter earnings fell short of expectations and that caused its stock to pull back by -16%. Management has been focusing on de-risking the balance sheet and more profitable growth, which led to declining loan balances. Non-interest expenses were above forecasts, driven by continued investment in its back office and infrastructure. Of note, asset quality remains solid and deposit growth was strong.”
A customer using a mobile banking app at home to securely transfer money.
MVB Financial Corp. (NASDAQ:MVBF) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 2 hedge fund portfolios held MVB Financial Corp. (NASDAQ:MVBF) at the end of the second quarter which was 4 in the previous quarter. While we acknowledge the potential of MVB Financial Corp. (NASDAQ:MVBF) 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 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.