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 Insmed Incorporated (NASDAQ:INSM). Insmed Incorporated (NASDAQ:INSM) is a biopharmaceutical company focusing on developing therapies for patients with serious and rare diseases. On June 30, 2026, Insmed Incorporated (NASDAQ:INSM) closed at $106.62 per share, reflecting a market capitalization of $23.11 billion. Insmed Incorporated (NASDAQ:INSM) posted a one-month return of 2.66%, and its shares gained 8.53% over the past 52 weeks.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Insmed Incorporated (NASDAQ:INSM) in its Q1 2026 investor letter:
“Our preferences among Health Care stocks are those companies providing novel therapies for unmet needs that command premium pricing, or specialized service providers. Insmed Incorporated (NASDAQ:INSM), a developer of therapies for patients with serious and rare diseases, dropped -6%. The launch of Brinsupri is well ahead of expectations. That medication received FDA approval last summer as the first treatment for non-cystic fibrosis bronchiectasis, a chronic lung disease. Management also noted that Arikayce sales were below the Street. That prescription antibiotic is used to treat refractory Mycobacterium avium complex lung disease. In our view, Brunsupri is their primary driver, with expectations of $1 billion in sales for 2026. We added to the position.”
Insmed Incorporated (NASDAQ:INSM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 67 hedge fund portfolios held Insmed Incorporated (NASDAQ:INSM) at the end of the first quarter, compared to 75 in the previous quarter. While we acknowledge the risk and potential of Insmed Incorporated (NASDAQ:INSM) 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 Insmed Incorporated (NASDAQ:INSM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Insmed Incorporated (NASDAQ:INSM) and shared the list of best AI-powered healthcare stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q1 2026 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.
