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 Interactive Brokers Group, Inc. (NASDAQ:IBKR). Interactive Brokers Group, Inc. (NASDAQ:IBKR) is an automated electronic broker that provides trading, clearing, and custody services. On March 19, 2026, Interactive Brokers Group, Inc. (NASDAQ:IBKR) stock closed at $67.69 per share. One-month return of Interactive Brokers Group, Inc. (NASDAQ:IBKR) was -9.01%, and its shares gained 56.18% over the past 52 weeks. Interactive Brokers Group, Inc. (NASDAQ:IBKR) has a market capitalization of $115.086 billion.
TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Interactive Brokers Group, Inc. (NASDAQ:IBKR) in its fourth quarter 2025 investor letter:
“In the Financials sector, we tend to avoid banks facing credit deterioration or rising deposit costs, preferring asset managers, specialized insurance companies, or financial technology providers. Interactive Brokers Group, Inc. (NASDAQ:IBKR) offers custody and account services for hedge funds, mutual funds, exchange-traded funds, registered investment advisers, and individual investors. Third-quarter earnings surpassed Street estimates. The upside was driven by robust account growth, higher revenues, and lower expenses. December marked the thirteenth consecutive month with year-over-year account growth above 30%. Reflecting a broader market pullback, total client Daily Average Revenue Trades (DARTs) declined sequentially in December as volumes softened across equities, options, and futures. Despite this year-end dip, fourth-quarter DARTs comfortably surpassed Wall Street estimates. Shares of Interactive Brokers fell by -6% in the quarter.”
Interactive Brokers Group, Inc. (NASDAQ:IBKR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 81 hedge fund portfolios held Interactive Brokers Group, Inc. (NASDAQ:IBKR) at the end of the fourth quarter, up from 68 in the previous quarter. While we acknowledge the risk and potential of Interactive Brokers Group, Inc. (NASDAQ:IBKR) 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 Interactive Brokers Group, Inc. (NASDAQ:IBKR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Interactive Brokers Group, Inc. (NASDAQ:IBKR) and shared Hinde Group’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.
