TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. At the beginning of 2025, a general sense of optimism prevailed among businesses and markets. The expectations for a pro-business atmosphere with reduced regulatory burdens boosted global markets in January. However, in February, delays and uncertainties surrounding U.S. policies led to a more cautious market response, culminating in a significant decline in March. In this environment, the strategy returned -3.29% (gross) and -3.48% (net) while the Russell Midcap Growth Index returned -7.12%. 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. Mid Cap Growth Strategy highlighted stocks such as The Allstate Corporation (NYSE:ALL). The Allstate Corporation (NYSE:ALL) is an insurance company that provides property and casualty and other insurance products. The one-month return of The Allstate Corporation (NYSE:ALL) was -3.38%, and its shares gained 20.35% of their value over the last 52 weeks. On June 18, 2025, The Allstate Corporation (NYSE:ALL) stock closed at $195.67 per share, with a market capitalization of $51.817 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding The Allstate Corporation (NYSE:ALL) in its Q1 2025 investor letter:
“In the Financials sector we tend to avoid banks that face credit deterioration or rising deposit costs, preferring either asset managers, specialized insurance companies, or financial technology providers. On the plus side there was an 8% gain from The Allstate Corporation (NYSE:ALL), which provides personal property and casualty insurance, life insurance, as well as retirement and investment products. Revenues and earnings were higher than anticipated, propelled by underlying loss ratio beats across Homeowners and Auto insurance as well as lower than expected catastrophe losses. Notably, the company highlighted that it expects policies-in-force to grow in 2025. As its shares climbed, we trimmed our position.”
An experienced property and casualty insurance agent at a client’s home, explaining the benefits of the company’s homeowners’ insurance policies.
The Allstate Corporation (NYSE:ALL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held The Allstate Corporation (NYSE:ALL) at the end of the first quarter, which was 71 in the previous quarter. While we acknowledge the potential of The Allstate Corporation (NYSE:ALL) 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 The Allstate Corporation (NYSE:ALL) and shared the list of best insurance stocks to buy according to hedge funds. 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 ALL 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.
