TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy returned -3.55% (gross) and -3.76% (net) in the fourth quarter compared to a -3.70% return for the Russell Midcap Growth Index. In 2025, the strategy returned 14.84% (gross) and 13.88% (net) compared to 8.66% 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 due to 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. Focus Growth Strategy highlighted stocks like HubSpot, Inc. (NYSE:HUBS). HubSpot, Inc. (NYSE:HUBS) is a software company that offers a cloud-based customer relationship management (CRM) platform for businesses. On March 19, 2026, HubSpot, Inc. (NYSE:HUBS) stock closed at $262.32 per share. One-month return of HubSpot, Inc. (NYSE:HUBS) was 12.34%, and its shares lost 56.73% over the past 52 weeks. HubSpot, Inc. (NYSE:HUBS) has a market capitalization of $13.82 billion.
TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding HubSpot, Inc. (NYSE:HUBS) in its fourth quarter 2025 investor letter:
“Among the wide variety of Information Technology companies, we prefer critical systems providers, specialized component designers, systems that improve client productivity or efficiency, and others that are growing their share of corporate IT budgets. HubSpot, Inc. (NYSE:HUBS), a cloud-based customer relationship management platform provider, dropped by -14%. The company delivered a beat-and-raise quarter, but elevated expectations following its September Analyst Day—where it disclosed 25% year-on-year growth in net new annualized recurring revenues for the first half of 2025—led investors to anticipate near-term revenue acceleration. This improvement is expected to materialize gradually rather than immediately. In our subsequent meeting with the company, their CEO expressed confidence in sustained core growth levers, including platform consolidation, multi-hub adoption, and strong upmarket momentum.”
HubSpot, Inc. (NYSE:HUBS) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 56 hedge fund portfolios held HubSpot, Inc. (NYSE:HUBS) at the end of the fourth quarter, compared to 63 in the previous quarter. While we acknowledge the risk and potential of HubSpot, Inc. (NYSE:HUBS) 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 HubSpot, Inc. (NYSE:HUBS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered HubSpot, Inc. (NYSE:HUBS) and shared the list of best stocks to buy and hold for the next 2 years. 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.
