Here’s What Backed TimesSquare Capital U.S. Small Cap Growth Strategy’s Addition of SiTime Corporation (SITM)

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned 2.26% (gross) and 2.01% (net), compared to the Russell 2000 Growth Index’s 12.19% return. During the quarter, all asset classes except fixed income outside the U.S. posted positive returns. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, TimesSquare Capital U.S. Small Cap Growth Strategy highlighted stocks such as SiTime Corporation (NASDAQ:SITM). SiTime Corporation (NASDAQ:SITM) designs and develops solutions for silicon timing systems. The one-month return of SiTime Corporation (NASDAQ:SITM) was -9.13%, and its shares gained 44.21% of their value over the last 52 weeks. On January 5, 2026, SiTime Corporation (NASDAQ:SITM) stock closed at $333.03 per share, with a market capitalization of $8.692 billion.

TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding SiTime Corporation (NASDAQ:SITM) in its third quarter 2025 investor letter:

“Rebounding from weakness earlier in the year, contributing to results was the relatively new holding, SiTime Corporation (NASDAQ:SITM) that designs micro-electro-mechanical systems (MEMS) timing chips, such as oscillators and resonators, for electronic components. SiTime is the dominant market leader for MEMS timing chips, which are rapidly displacing quartz-based systems in high-performance processors. We initiated the position at the end of June and continued buying in July during SiTime’s share price weakness with a view that sales momentum from new design wins was accelerating. Subsequently, SiTime reported better-than-expected revenues and earnings that supported our evaluations, though when the initial price reaction was weak, we bought additional shares. Later in the quarter, as SiTime’s price increased by 39%, we trimmed back the position’s weight.”

In another article, we covered SiTime Corporation (NASDAQ:SITM) and shared the list of best semiconductor stocks to buy heading into 2026. In addition, please check out our hedge fund investor letters Q3 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.