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 Ross Stores, Inc. (NASDAQ:ROST) as one of its leading contributors. Ross Stores, Inc. (NASDAQ:ROST) is a US-based off-price retail apparel and home fashion store operator. On June 29, 2026, Ross Stores, Inc. (NASDAQ:ROST) stock closed at $208.83 per share. One-month return of Ross Stores, Inc. (NASDAQ:ROST) was -6.70%, and its shares gained 60.68% over the past 52 weeks. Ross Stores, Inc. (NASDAQ:ROST) has a market capitalization of $66.99 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Ross Stores, Inc. (NASDAQ:ROST) in its Q1 2026 investor letter:
“Our preferences in the Consumer-oriented sectors lean toward value-oriented or specialty retailers, franchise models, premium brands, or support services for other consumer companies. Ross Stores, Inc. (NASDAQ:ROST) saw its shares advance 21% over the quarter after reporting outstanding results. Execution across marketing, customer engagement, new brands, and the store experience demonstrates that their off-price/value-focused model is resonating.”
Ross Stores, Inc. (NASDAQ:ROST) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 83 hedge fund portfolios held Ross Stores, Inc. (NASDAQ:ROST) at the end of the first quarter, up from 71 in the previous quarter. While we acknowledge the risk and potential of Ross Stores, Inc. (NASDAQ:ROST) 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 Ross Stores, Inc. (NASDAQ:ROST) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Ross Stores, Inc. (NASDAQ:ROST) and shared billionaire Steven Cohen’s top dividend stock picks. In addition, please check out our hedge fund investor letters Q1 2026 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.
