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 Warby Parker Inc. (NYSE:WRBY), in the second quarter 2024 investor letter. Warby Parker Inc. (NYSE:WRBY) offers wide range of eyewear products includes eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. The one-month return of Warby Parker Inc. (NYSE:WRBY) was 10.55%, and its shares gained 21.27% of their value over the last 52 weeks. On September 17, 2024, Warby Parker Inc. (NYSE:WRBY) stock closed at $14.88 per share with a market capitalization of $1.798 billion.
TimesSquare Capital Management U.S. Small Cap Growth Strategy stated the following regarding Warby Parker Inc. (NYSE:WRBY) in its Q2 2024 investor letter:
“Our preferences in the Consumer-oriented sectors lean toward value-oriented or specialty retailers, franchise models, or premium brands. Warby Parker Inc. (NYSE:WRBY), a specialty retailer of eyewear products, rose 18%. Its first quarter results surpassed expectations with strength in single-vision glasses and a return to growth in its digital channel due to recent marketing efforts. Additionally, forward revenue and profits expectations were increased.”
A woman wearing a stylish pair of eyeglasses walking through a shopping center.
Warby Parker Inc. (NYSE:WRBY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Warby Parker Inc. (NYSE:WRBY) at the end of the second quarter which was 27 in the previous quarter. Warby Parker Inc.’s (NYSE:WRBY) net revenue increased 13.3% to $188.2 million in the second quarter and gross margin to approximately 56%. While we acknowledge the potential of Warby Parker Inc. (NYSE:WRBY) 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.