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 Certara, Inc. (NASDAQ:CERT), in the second quarter 2024 investor letter. Certara, Inc. (NASDAQ:CERT) offers software products and technology-enabled services to customers for bio-simulation in drug discovery, preclinical and clinical research, regulatory submissions, and market access. The one-month return of Certara, Inc. (NASDAQ:CERT) was -16.73%, and its shares lost 24.81% of their value over the last 52 weeks. On September 16, 2024, Certara, Inc. (NASDAQ:CERT) stock closed at $10.70 per share with a market capitalization of $1.722 billion.
TimesSquare Capital Management U.S. Small Cap Growth Strategy stated the following regarding Certara, Inc. (NASDAQ:CERT) in its Q2 2024 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. Certara, Inc. (NASDAQ:CERT) provides products and technology-enabled services to its customers for bio simulation in drug discovery, clinical research, and regulatory submission. First quarter revenues outpaced estimates, driven by better-than-expected performance in both software and services. Bookings however fell short and that led to a -22% selloff. Biotech funding and clinical trial starts have continued to improve. Thus, we decided to add to the position on weakness.”
A Biote-certified practitioner examining a patient’s blood sample under a microscope.
Certara, Inc. (NASDAQ:CERT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held Certara, Inc. (NASDAQ:CERT) at the end of the second quarter which was 13 in the previous quarter. The second quarter revenue of Certara, Inc. (NASDAQ:CERT) grew 3% to $93.3 million. While we acknowledge the potential of Certara, Inc. (NASDAQ:CERT) 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 Certara, Inc. (NASDAQ:CERT) and shared the list of best medical AI companies. Certara, Inc. (NASDAQ:CERT) detracted from the performance of The London Company Small Cap Strategy during Q2 2024. 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.