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 Hamilton Lane Incorporated (NASDAQ:HLNE). Hamilton Lane Incorporated (NASDAQ:HLNE) is a private equity and venture capital firm. The one-month return of Hamilton Lane Incorporated (NASDAQ:HLNE) was -17.36%, and its shares gained 16.97% of their value over the last 52 weeks. On June 20, 2025, Hamilton Lane Incorporated (NASDAQ:HLNE) stock closed at $136.69 per share, with a market capitalization of $7.32 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Hamilton Lane Incorporated (NASDAQ:HLNE) 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. Hamilton Lane Inc. is an alternative asset management firm. Earnings exceeded estimates stemming from solid expense discipline and higher incentive fees. Fundraising came in slightly below expectations. While its shares edged forward by 1% over the quarter, we opportunistically added to the position. Hamilton Lane is well positioned to benefit from growing secular demand for private asset investment strategies.
Hamilton Lane Incorporated (NASDAQ:HLNE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held Hamilton Lane Incorporated (NASDAQ:HLNE) at the end of the first quarter, which was 22 in the previous quarter. During fiscal Q4 2025, Hamilton Lane Incorporated’s (NASDAQ:HLNE) AUM reached at $138 million, up 11% year-over-year. While we acknowledge the potential of Hamilton Lane Incorporated (NASDAQ:HLNE) 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 HLNE 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.
