TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The Strategy fell 7.72% (net) in the quarter compared to -6.35% for the Russell Midcap Growth Index. In the first quarter, markets navigated geopolitical tensions and economic resilience alongside temporary global tariffs. High oil prices and supply chain disruptions followed U.S. and Israeli involvement in Iran, prompting a shift to safer assets and a reevaluation of supply chains and energy dependencies. Central banks maintained steady policies despite energy-driven inflation. In this environment, the Strategy remains focused on disciplined management teams with durable competitive advantages. Please review the Strategy’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, TimesSquare Capital U.S. Mid Cap Growth Strategy highlighted Take-Two Interactive Software, Inc. (NASDAQ:TTWO). Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is a leading American interactive entertainment solutions company. On June 30, 2026, Take-Two Interactive Software, Inc. (NASDAQ:TTWO) closed at $249.98 per share, reflecting a market capitalization of $46.41 billion. Take-Two Interactive Software, Inc. (NASDAQ:TTWO) posted a one-month return of 15.84%, and its shares gained 4.37% over the past 52 weeks.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Take-Two Interactive Software, Inc. (NASDAQ:TTWO) in its Q1 2026 investor letter:
“For the Communication Services sector, we prefer to invest in media and services companies that are either well placed from an advertising perspective for their target audience or that provide differentiated services. Take-Two Interactive Software, Inc. (NASDAQ:TTWO) develops, publishes, and markets interactive entertainment, including titles such as Grand Theft Auto, LA Noire, Max Payne, Midnight Club, and Red Dead Redemption. Its shares sold off -23% amid speculation that Google’s launch of Project Genie will affect game-developing companies. In our research, we determined that Genie does not pose a threat and believe the most important aspect is each company’s intellectual property. Take-Two’s fiscal third-quarter results give us confidence, and management reiterated that Grand Theft Auto 6 will launch in November. We added to the position on weakness.”
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 77 hedge fund portfolios held Take-Two Interactive Software, Inc. (NASDAQ:TTWO) at the end of the first quarter, compared to 78 in the previous quarter. Take-Two Interactive Software, Inc.’s (NASDAQ:TTWO) GAAP net revenue increased 6% to $1.68 billion in the fourth quarter of fiscal year 2026, while cost of revenue declined 5% to $741 million. While we acknowledge the risk and potential of Take-Two Interactive Software, Inc. (NASDAQ:TTWO) 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 Take-Two Interactive Software, Inc. (NASDAQ:TTWO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Take-Two Interactive Software, Inc. (NASDAQ:TTWO) and shared the list of most promising metaverse stocks to buy. In addition, please check out our hedge fund investor letters Q1 2026 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.
