TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy returned 3.70% (gross) and 3.45% (net) in the fourth quarter compared to a 1.22% return for the Russell 2000 Growth Index. In 2025, the strategy returned 6.91% (gross) and 5.85% (net) compared to 13.01% 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 amid 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. Small Cap Growth Strategy highlighted JFrog Ltd. (NASDAQ:FROG) as one of its notable contributors. Incorporated in 2008, JFrog Ltd. (NASDAQ:FROG) is a technology company that provides a software supply chain platform to enable secure software delivery and management across teams. On April 1, 2026, JFrog Ltd. (NASDAQ:FROG) closed at $48.46 per share. One-month return of JFrog Ltd. (NASDAQ:FROG) was 17.91%, and its shares gained 56.12% over the past 52 weeks. JFrog Ltd. (NASDAQ:FROG) has a market capitalization of $5.8 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding JFrog Ltd. (NASDAQ:FROG) in its fourth quarter 2025 investor letter:
“Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, systems that improve productivity or efficiency for their clients, and others that are growing their shares of corporate IT budgets. Lastly was JFrog Ltd. (NASDAQ:FROG), the portfolio’s strongest performer this quarter. JFrog manages the software supply chain and enables organizations to securely deliver software updates across their enterprises. Demand for security increased following the recent NPM supply chain attack. JFrog’s security add-on—which secures open-source packages before organizations onboard them—has seen significant pipeline growth, driving a 32% rally in its shares.”
JFrog Ltd. (NASDAQ:FROG) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 50 hedge fund portfolios held JFrog Ltd. (NASDAQ:FROG) at the end of the fourth quarter, compared to 52 in the previous quarter. In Q4 2025, JFrog Ltd. (NASDAQ:FROG) reported revenue of $145.3 million, marking an increase of 25% year over year. While we acknowledge the risk and potential of JFrog Ltd. (NASDAQ:FROG) 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 JFrog Ltd. (NASDAQ:FROG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered JFrog Ltd. (NASDAQ:FROG) and shared the list of stocks that could 10X over the next 5 years. 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.
