TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy returned 3.70% (gross) and 3.45% (net) in the fourth quarter compared to a 1.22% return for the Russell 2000 Growth Index. In 2025, the strategy returned 6.91% (gross) and 5.85% (net) compared to 13.01% for the index. Global equity markets ended the quarter on a positive note, with Europe leading, followed by Emerging Markets. In most markets, large caps outperformed small caps. The trade truce between the United States and China was prolonged for an additional year, but global geopolitical concerns, whether related to tariffs or not, persisted. Third-quarter GDP exceeded expectations, but consumer caution persists amid ongoing labor-market softening, influencing the Fed’s decision on interest-rate cuts. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, TimesSquare Capital U.S. Small Cap Growth Strategy highlighted stocks like ABIVAX Société Anonyme (NASDAQ:ABVX). ABIVAX Société Anonyme (NASDAQ:ABVX) is a French clinical-stage biotechnology company that focuses on developing treatments for bowel diseases. On April 1, 2026, ABIVAX Société Anonyme (NASDAQ:ABVX) closed at $114.97 per share. One-month return of ABIVAX Société Anonyme (NASDAQ:ABVX) was -2.01%, and its shares gained 1,885.66% over the past 52 weeks. ABIVAX Société Anonyme (NASDAQ:ABVX) has a market capitalization of $9.11 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding ABIVAX Société Anonyme (NASDAQ:ABVX) in its fourth quarter 2025 investor letter:
“Our preferences among Health Care stocks are those companies providing novel therapies for unmet needs that command premium pricing, or specialized service providers. That includes the biopharma developer of treatments for bowel diseases, ABIVAX Société Anonyme (NASDAQ:ABVX). We first purchased Abivax in the summer, after it reported strong clinical trial results for its obefazimod treatment to address ulcerative colitis in a longer-lasting manner with fewer side effects than current medicines. Toward the end of the year, there was speculation that Abivax was in the acquisition crosshairs of a larger pharmaceutical company, and we trimmed our position as it rose by 58%.”
ABIVAX Société Anonyme (NASDAQ:ABVX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 57 hedge fund portfolios held ABIVAX Société Anonyme (NASDAQ:ABVX) at the end of the fourth quarter, up from 56 in the previous quarter. While we acknowledge the risk and potential of ABIVAX Société Anonyme (NASDAQ:ABVX) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ABIVAX Société Anonyme (NASDAQ:ABVX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered ABIVAX Société Anonyme (NASDAQ:ABVX) and shared the list of best performing stocks in the last 12 months. In addition, please check out our hedge fund investor letters Q4 2025 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.
