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 CeriBell, Inc. (NASDAQ:CBLL). CeriBell, Inc. (NASDAQ:CBLL) is medical technology company specializing in developing a novel and point-of-care EEG platform. On April 1, 2026, CeriBell, Inc. (NASDAQ:CBLL) closed at $18.50 per share. One-month return of CeriBell, Inc. (NASDAQ:CBLL) was 3.41%, and its shares lost 1.23% over the past 52 weeks. CeriBell, Inc. (NASDAQ:CBLL) has a market capitalization of $696.36 million.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding CeriBell, Inc. (NASDAQ:CBLL) 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. The share price of CeriBell, Inc. (NASDAQ:CBLL), a leader in portable electroencephalogram (EEG) technology, surged 91% after reporting inline financial results and elevating its sales outlook for the remainder of its fiscal year. The recent FDA clearance for the company’s Clarity algorithm for neonates significantly broadens Ceribell’s total addressable markets and is expected to enable an earlier-than-anticipated neonatal launch.”
CeriBell, Inc. (NASDAQ:CBLL) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 20 hedge fund portfolios held CeriBell, Inc. (NASDAQ:CBLL) at the end of the fourth quarter, up from 12 in the previous quarter. While we acknowledge the risk and potential of CeriBell, Inc. (NASDAQ:CBLL) 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 CeriBell, Inc. (NASDAQ:CBLL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered CeriBell, Inc. (NASDAQ:CBLL) and shared the list of most promising small-cap stocks according to Wall Street analysts. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.
