TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter the fund returned 6.50% (gross) and 6.24% (net), compared to an 8.41% return for the Russell 2000 Growth Index. Global markets performed fairly in the third quarter, with the majority of credit and stock markets reporting returns in the mid- to high single-digit range. Energy costs decreased and economic activity indicators remained steady, but recent increases in Middle East tensions started to reverse that. Smaller or value-oriented stocks in developed economies yielded higher returns in the equity space, whereas emerging markets saw the opposite trend. Beta was one of the most powerful variables in global equities this quarter, following a poor first half of 2024. 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 Vaxcyte, Inc. (NASDAQ:PCVX) in the Q3 2024 investor letter. Vaxcyte, Inc. (NASDAQ:PCVX) is a clinical-stage biotechnology vaccine company that focuses on developing novel protein vaccines to prevent or treat bacterial infectious diseases. The one-month return of Vaxcyte, Inc. (NASDAQ:PCVX) was -9.97%, and its shares gained 61.35% of their value over the last 52 weeks. On December 6, 2024, Vaxcyte, Inc. (NASDAQ:PCVX) stock closed at $91.45 per share with a market capitalization of $11.63 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Vaxcyte, Inc. (NASDAQ:PCVX) in its Q3 2024 investor letter:
“Vaxcyte, Inc. (NASDAQ:PCVX) (developer of vaccines) and Insmed Incorporated (developer of treatments for various pulmonary diseases). Vaxcyte’s lead pneumococcal vaccine candidate recently reported positive clinical data across a wider range of pneumonia types than current treatments. That created significant potential for Vaxcyte to take share within a multi-billion-dollar market, and we began to build a position.”
A research scientist in a laboratory holding a vial of a biotechnology drug.
Vaxcyte, Inc. (NASDAQ:PCVX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held Vaxcyte, Inc. (NASDAQ:PCVX) at the end of the third quarter which was 37 in the previous quarter. While we acknowledge the potential of Vaxcyte, Inc. (NASDAQ:PCVX) 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 Vaxcyte, Inc. (NASDAQ:PCVX) and shared Carillon Eagle Small Cap Growth Fund’s views on the company. Baron Health Care Fund initiated a position in Vaxcyte, Inc. (NASDAQ:PCVX) during Q3 2024. In addition, please check out our hedge fund investor letters Q3 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.