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 Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI). Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) is a US-based retailer of closeout merchandise and excess inventory. On April 1, 2026, Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) closed at $91.24 per share. One-month return of Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) was -16.47%, and its shares lost 22.32% over the past 52 weeks. Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) has a market capitalization of $5.6 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) 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. While Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) saw a -15% return, we have been increasing our position in the specialty retailer for closeouts, excess inventory, and salvage merchandise. Revenues were slightly below expectations as consumers shifted to even lower-priced store inventory, though Ollie’s managed costs and reported better-than-expected earnings. Membership in Ollie’s Army loyalty club grew as did the number of Ollie’s stores, which we believe bodes well for its 2026 results.”
Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 39 hedge fund portfolios held Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) at the end of the fourth quarter, up from 38 in the previous quarter. In Q4 2025, Ollie’s Bargain Outlet Holdings, Inc.’s (NASDAQ:OLLI) net sales increased 17% year-over-year to $779 million, driven by new store openings and comparable store sales growth. While we acknowledge the risk and potential of Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) 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 Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) and shared the list of best mid-cap consumer defensive stocks to buy. 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.
