TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The Strategy fell 7.72% (net) in the quarter compared to -6.35% for the Russell Midcap Growth Index. In the first quarter, markets navigated geopolitical tensions and economic resilience alongside temporary global tariffs. High oil prices and supply chain disruptions followed U.S. and Israeli involvement in Iran, prompting a shift to safer assets and a reevaluation of supply chains and energy dependencies. Central banks maintained steady policies despite energy-driven inflation. In this environment, the Strategy remains focused on disciplined management teams with durable competitive advantages. Please review the Strategy’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, TimesSquare Capital U.S. Mid Cap Growth Strategy highlighted Regal Rexnord Corporation (NYSE:RRX). Regal Rexnord Corporation (NYSE:RRX) is a leading industrial company that offers sustainable power solutions, transmission, and control motion products. On June 8, 2026, Regal Rexnord Corporation (NYSE:RRX) closed at $238.19 per share. One-month return of Regal Rexnord Corporation (NYSE:RRX) was 10.65%, and its shares gained 56.94% over the past 52 weeks. Regal Rexnord Corporation (NYSE:RRX) has a market capitalization of $15.86 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Regal Rexnord Corporation (NYSE:RRX) in its Q1 2026 investor letter:
“Many of our Industrial positions provide necessary business-to-business operational services, highly technical components, equipment enabling automation & efficiency improvements, or essential infrastructure services. Regal Rexnord Corporation (NYSE:RRX), a provider of power and control motion products, climbed 34% rising on the back of impressive contract wins for its data center power management solutions. Mixed results included a slight beat on earnings and a slight miss on revenue. Orders were, however, a standout, leaping 54% y/y with wins in the company’s new datacenter power management offering.”
Regal Rexnord Corporation (NYSE:RRX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 51 hedge fund portfolios held Regal Rexnord Corporation (NYSE:RRX) at the end of the first quarter, up from 40 in the previous quarter. Regal Rexnord Corporation (NYSE:RRX) Q1 2026 sales increase 4.3% and 1.6% on an organic basis compared to Q1 2025. While we acknowledge the risk and potential of Regal Rexnord Corporation (NYSE:RRX) 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 Regal Rexnord Corporation (NYSE:RRX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Regal Rexnord Corporation (NYSE:RRX) and shared Diamond Hill Select Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 2026 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.
