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 Hexcel Corporation (NYSE:HXL), in the second quarter 2024 investor letter. Hexcel Corporation (NYSE:HXL) manufactures carbon fibers, structural reinforcements, honeycomb structures, resins, and composite materials and parts for commercial aerospace, space and defense, and industrial applications. The one-month return of Hexcel Corporation (NYSE:HXL) was -4.63%, and its shares lost 10.50% of their value over the last 52 weeks. On September 17, 2024, Hexcel Corporation (NYSE:HXL) stock closed at $60.70 per share with a market capitalization of $4.962 billion.
TimesSquare Capital Management U.S. Small Cap Growth Strategy stated the following regarding Hexcel Corporation (NYSE:HXL) in its Q2 2024 investor letter:
“Many of our Industrial positions provide necessary business-to-business operational services, highly technical components, automation & efficiency improvements, or essential infrastructure services. Hexcel Corporation (NYSE:HXL) develops and manufactures composites for use in commercial aerospace, space, defense, and industrial applications. Early in the quarter, the company announced its long-time CEO would retire and the recent CEO of Spirit AeroSystems would take his place. We are not enthusiastic about the selection and have a negative view of his tenure at Spirit. Therefore, we decided to sell out of our position which tumbled -12% while held in the quarter.”
An engineer inspecting the assembly of an aircraft wing, intricately designed components in the background.
Hexcel Corporation (NYSE:HXL) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Hexcel Corporation (NYSE:HXL) at the end of the second quarter which was 28 in the previous quarter. While we acknowledge the potential of Hexcel Corporation (NYSE:HXL) 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 Hexcel Corporation (NYSE:HXL) and shared Heartland Value Fund’s views on the company. TimesSquare Capital U.S. Mid Cap Growth Strategy trimmed Hexcel Corporation (NYSE:HXL) in the previous quarter due to its below-expected earnings. 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.