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 Smartsheet Inc. (NYSE:SMAR) in the first quarter 2024 investor letter. Smartsheet Inc. (NYSE:SMAR) offers an enterprise platform to plan, capture, manage, automate, and report on work for teams and organizations. The one-month return of Smartsheet Inc. (NYSE:SMAR) was 3.93%, and its shares gained 7.79% of their value over the last 52 weeks. On June 20, 2024, Smartsheet Inc. (NYSE:SMAR) stock closed at $41.24 per share with a market capitalization of $5.705 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Smartsheet Inc. (NYSE:SMAR) 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. Smartsheet Inc. (NYSE:SMAR) offers a cloud-based platform for work management. The company reported solid fourth quarter results that beat the Street across revenues, operating income, free cash flow, and earnings. Gross revenue retention remained stable at 96%. While Smartsheet is still in the early day of ramping their AI offerings, management noted strong initial feedback on their first two features. Initial fiscal 2025 guidance was mixed. While earnings and free cash flow are projected to rise, management is conservatively embedding a worsening outlook for its small-to-mid-sized business customers and that caused a -19% slide in its stock.”
An executive in suit presenting a large touch screen of the company’s cloud-based enterprise platform.
Smartsheet Inc. (NYSE:SMAR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Smartsheet Inc. (NYSE:SMAR) at the end of the first quarter which was 52 in the previous quarter. Smartsheet Inc. (NYSE:SMAR) generated the first-quarter revenue of $263 million, up 20% year-over-year. While we acknowledge the potential of Smartsheet Inc. (NYSE:SMAR) 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 Smartsheet Inc. (NYSE:SMAR) and shared Carillon Eagle Small Cap Growth Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 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.
