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 such as EMCOR Group, Inc. (NYSE:EME). Headquartered in Norwalk, Connecticut, EMCOR Group, Inc. (NYSE:EME) offers electrical and mechanical construction and facilities, building, and industrial services. The one-month return of EMCOR Group, Inc. (NYSE:EME) was -7.56%, and its shares gained 90.14% of their value over the last 52 weeks. On March 19, 2026, EMCOR Group, Inc. (NYSE:EME) stock closed at $751.33 per share, with a market capitalization of $33.634 billion.
TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding EMCOR Group, Inc. (NYSE:EME) in its fourth quarter 2025 investor letter:
“Many of our Industrial positions provide necessary business-to-business operational services, highly technical components, equipment enabling automation & efficiency improvements, or essential infrastructure services. EMCOR Group, Inc. (NYSE:EME) provides electrical, mechanical, construction, and facilities services. Although the company’s third-quarter revenues and earnings outpaced sell-side projections, the results were overshadowed by very strong performance from a key competitor during the same quarter, which led to a -6% pullback.”
EMCOR Group, Inc. (NYSE:EME) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 65 hedge fund portfolios held EMCOR Group, Inc. (NYSE:EME) at the end of the fourth quarter, up from 58 in the previous quarter. In Q4 2025, EMCOR Group, Inc. (NYSE:EME) generated revenues of $4.5 billion, which represents 19.7% growth form Q4 2024. While we acknowledge the risk and potential of EMCOR Group, Inc. (NYSE:EME) 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 EMCOR Group, Inc. (NYSE:EME) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered EMCOR Group, Inc. (NYSE:EME) and shared a list of best performing S&P 500 stocks in the last 5 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.
