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 The AZEK Company Inc. (NYSE:AZEK), in the second quarter 2024 investor letter. The AZEK Company Inc. (NYSE:AZEK), with a market capitalization of $6.498 billion, designs, manufactures, and distributes building products for industrial, commercial, and residential sectors. The one-month return of The AZEK Company Inc. (NYSE:AZEK) was 6.58%, and its shares gained 46.91% of their value over the last 52 weeks. On September 17, 2024, The AZEK Company Inc. (NYSE:AZEK) stock closed at $45.00 per share.
TimesSquare Capital Management U.S. Small Cap Growth Strategy stated the following regarding The AZEK Company Inc. (NYSE:AZEK) 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. The AZEK Company Inc. (NYSE:AZEK) designs and manufactures wood alternative building products for predominantly residential applications. A beat and raise quarter was eclipsed by news of an accounting restatement stemming from erroneous inventory accounting errors by a former employee. The misstatements overstated inventory values and understated costs of goods sold. Notably, there was no impact on revenues or cash. In addition, a negative update in June from a major distributor of pool supplies and equipment pressured stocks tied to high-ticket outdoor living. Together, these headwinds sent the stock down by -16%.”
A team of architects and engineers standing in front of a mid-construction commercial building.
The AZEK Company Inc. (NYSE:AZEK) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held The AZEK Company Inc. (NYSE:AZEK) at the end of the second quarter which was 36 in the previous quarter. In the fiscal third quarter 2024, The AZEK Company Inc.’s (NYSE:AZEK) net sales grew 12% year-over-year to $434 million. While we acknowledge the potential of The AZEK Company Inc. (NYSE:AZEK) 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 The AZEK Company Inc. (NYSE:AZEK) and shared stock picks of Jim Cramer that you shouldn’t miss. 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.