TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund returned -9.41% (gross) and -9.64% (net), compared to a -11.12% return for the Russell 2000 Growth Index. There was a broad positive sentiment in the market at the beginning of 2025. Expectations for a pro-business and soft regulatory environment lifted global markets in January. However, delays and uncertainties surrounding U.S. policies led to a significant downturn in March. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, TimesSquare Capital U.S. Small Cap Growth Strategy highlighted stocks such as Addus HomeCare Corporation (NASDAQ:ADUS). Addus HomeCare Corporation (NASDAQ:ADUS) offers personal care services to the elderly, chronically ill, disabled persons, and individuals who are at risk of hospitalization. The one-month return of Addus HomeCare Corporation (NASDAQ:ADUS) was 1.45%, and its shares lost 4.69% of their value over the last 52 weeks. On June 20, 2025, Addus HomeCare Corporation (NASDAQ:ADUS) stock closed at $113.79 per share, with a market capitalization of $2.094 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Addus HomeCare Corporation (NASDAQ:ADUS) in its Q1 2025 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. Addus HomeCare Corporation (NASDAQ:ADUS) provides in-home personal care services. Despite outpacing fourth quarter estimates, its shares sold off by -21% on fears of cuts to Medicaid tied to the House reconciliation process. Of note, Addus does not believe their patient demographic of older adults and/or individuals with disabilities will be the focus of cuts.”
A nurse providing hospice care in a home setting, reassuring a patient’s family members.
Addus HomeCare Corporation (NASDAQ:ADUS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Addus HomeCare Corporation (NASDAQ:ADUS) at the end of the first quarter, which was 18 in the previous quarter. In Q1 2025, Addus HomeCare Corporation (NASDAQ:ADUS) reported revenue of $337.7 million, an increase of 20.3% compared to Q1 2024. While we acknowledge the potential of Addus HomeCare Corporation (NASDAQ:ADUS) 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 undervalued AI stock set for massive gains.
In another article, we covered Addus HomeCare Corporation (NASDAQ:ADUS) and shared Polen US SMID Company Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of ADUS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
