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 stocks like Netskope, Inc. (NASDAQ:NTSK). Netskope, Inc. (NASDAQ:NTSK) is a leading cybersecurity company that offers security, networking, and analytics solutions to the largest enterprises and mid-sized companies. On April 1, 2026, Netskope, Inc. (NASDAQ:NTSK) stock closed at $8.37 per share. One-month return of Netskope, Inc. (NASDAQ:NTSK) was -27.72%, and YTD its shares lost 52.28%. Netskope, Inc. (NASDAQ:NTSK) has a market capitalization of $3.35 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Netskope, Inc. (NASDAQ:NTSK) 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. A recent IPO, the cybersecurity company providing security, networking, and analytics solutions Netskope, Inc. (NASDAQ:NTSK) is a leader in modern security and networking for the cloud and AI era. Shares of Netskope sold off with other software and cybersecurity names during the quarter and declined by -23%, though we continued adding to our holdings.”
Netskope, Inc. (NASDAQ:NTSK) is not on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 27 hedge fund portfolios held Netskope, Inc. (NASDAQ:NTSK) at the end of the fourth quarter, compared to 44 in the previous quarter. While we acknowledge the risk and potential of Netskope, Inc. (NASDAQ:NTSK) 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 Netskope, Inc. (NASDAQ:NTSK) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Netskope, Inc. (NASDAQ:NTSK) and shared a list of overlooked tech stocks to buy. Baron Global Opportunity Fund increased its investment in Netskope, Inc. (NASDAQ:NTSK) during Q4 2025 because of its potential to generate long-term value. 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.
