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 Bright Horizons Family Solutions Inc. (NYSE:BFAM). Bright Horizons Family Solutions Inc. (NYSE:BFAM), with a market capitalization of $7.004 billion, provides early education and childcare, back-up care, educational advisory, and other workplace solutions services. The one-month return of The Bright Horizons Family Solutions Inc. (NYSE:BFAM) was -5.62%, and its shares gained 16.48% of their value over the last 52 weeks. On June 20, 2025, Bright Horizons Family Solutions Inc. (NYSE:BFAM) stock closed at $122.33 per share.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Bright Horizons Family Solutions Inc. (NYSE:BFAM) in its Q1 2025 investor letter:
“Our preferences in the Consumer-oriented sectors lean toward value-oriented or specialty retailers, franchise models, or premium brands. Bright Horizons Family Solutions Inc. (NYSE:BFAM) provides early education and childcare services. Its share price advanced 15% after they reported a solid fourth quarter and gave encouraging guidance. Back-up care was the key driver, while full service has yet to fully rebound, though there have been green shoots in bigger cities aided by back-to-office trends.”
Young children smiling widely as they have lunch in a bright and fun educational center.
Bright Horizons Family Solutions Inc. (NYSE:BFAM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Bright Horizons Family Solutions Inc. (NYSE:BFAM) at the end of the first quarter, which was 30 in the previous quarter. In Q1 2025, Bright Horizons Family Solutions Inc.’s (NYSE:BFAM) revenue increased 7% to $666 million, and adjusted EPS grew 51% to $0.77 per share. While we acknowledge the potential of Bright Horizons Family Solutions Inc. (NYSE:BFAM) 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 Bright Horizons Family Solutions Inc. (NYSE:BFAM) and shared Artisan Mid Cap Fund’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 BFAM 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.
