TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy returned -3.55% (gross) and -3.76% (net) in the fourth quarter compared to a -3.70% return for the Russell Midcap Growth Index. In 2025, the strategy returned 14.84% (gross) and 13.88% (net) compared to 8.66% for the index. Global equity markets ended the quarter on a positive note, with Europe leading, followed by Emerging Markets. In most markets, large caps outperformed small caps. The trade truce between the United States and China was prolonged for an additional year, but global geopolitical concerns, whether related to tariffs or not, persisted. Third-quarter GDP exceeded expectations, but consumer caution persists due to ongoing labor-market softening, influencing the Fed’s decision on interest rate cuts. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, TimesSquare Capital U.S. Focus Growth Strategy highlighted stocks like O’Reilly Automotive, Inc. (NASDAQ:ORLY). O’Reilly Automotive, Inc. (NASDAQ:ORLY) is a leading US-based automotive parts retailer. On March 19, 2026, O’Reilly Automotive, Inc. (NASDAQ:ORLY) stock closed at $87.91 per share. One-month return of O’Reilly Automotive, Inc. (NASDAQ:ORLY) was -5.98%, and its shares lost 1.53% over the past 52 weeks. O’Reilly Automotive, Inc. (NASDAQ:ORLY) has a market capitalization of $73.55 billion.
TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding O’Reilly Automotive, Inc. (NASDAQ:ORLY) in its fourth quarter 2025 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. O’Reilly Automotive, Inc. (NASDAQ:ORLY), a specialty retailer of aftermarket auto parts and accessories, lost -15%. Third quarter results featured better-than-expected revenues, same-store sales, and earnings; however operating expenses were higher. Do-it-for-me professional mechanic sales trends were positive while do-it-yourself (DIY) saw lower transaction levels. Management commented on tariff-driven price increases taking effect and affecting DIY.”
O’Reilly Automotive, Inc. (NASDAQ:ORLY) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 69 hedge fund portfolios held O’Reilly Automotive, Inc. (NASDAQ:ORLY) at the end of the fourth quarter, compared to 75 in the previous quarter. While we acknowledge the risk and potential of O’Reilly Automotive, Inc. (NASDAQ:ORLY) 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 O’Reilly Automotive, Inc. (NASDAQ:ORLY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered O’Reilly Automotive, Inc. (NASDAQ:ORLY) and shared Aristotle Core Equity Fund’s views on the company. In addition, please check out our hedge fund investor letters Q4 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.
