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 MVB Financial Corp. (NASDAQ:MVBF). MVB Financial Corp. (NASDAQ:MVBF) is a bank holding company for MVB Bank, Inc, that offers financial services to individuals and corporate clients. The one-month return of MVB Financial Corp. (NASDAQ:MVBF) was 7.85%, and its shares gained 12.85% of their value over the last 52 weeks. On June 20, 2025, MVB Financial Corp. (NASDAQ:MVBF) stock closed at $20.46 per share, with a market capitalization of $265.872 million.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding MVB Financial Corp. (NASDAQ:MVBF) 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 or specialized insurance companies. MVB Financial Corp. (NASDAQ:MVBF), a provider of financial services to individuals and corporate clients, dropped -16%. In the fourth quarter, higher expenses and lower net interest income were partially offset by higher fees and a lower loan loss reserve provision. The bank improved their capital position through a sale leaseback transaction that included four branches. That capped a year in which they poured resources into building risk management and compliance controls amid heightened regulatory scrutiny for Banking-as-a-Service banks. MVB shrank its balance sheet given uncertainty over potential changes to deposit rules and exited its crypto line of business.”
A customer using a mobile banking app at home to securely transfer money.
MVB Financial Corp. (NASDAQ:MVBF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 4 hedge fund portfolios held MVB Financial Corp. (NASDAQ:MVBF) at the end of the first quarter, which was 3 in the previous quarter. While we acknowledge the potential of MVB Financial Corp. (NASDAQ:MVBF) 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 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 MVBF 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.
