Regal Rexnord Corp.’s (RRX) Management Reiterated Forward Guidance. Here’s Why

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned 11.28% (gross) and 11.02% (net), compared to the Russell 2000 Growth Index by 11.97%. Equities posted double-digit returns in the second quarter as global economic activity measures lifted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, TimesSquare Capital Small Cap Growth Strategy highlighted stocks such as Regal Rexnord Corporation (NYSE:RRX). Regal Rexnord Corporation (NYSE:RRX) is a global manufacturer of industrial powertrain solutions, power transmission components, electric motors and electronic controls, air-moving products, and specialty electrical components and systems.  The one-month return of Regal Rexnord Corporation (NYSE:RRX) was -0.45%, and its shares lost 6.53% of their value over the last 52 weeks. On September 11, 2025, Regal Rexnord Corporation (NYSE:RRX) stock closed at $144.93 per share, with a market capitalization of $9.62 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Regal Rexnord Corporation (NYSE:RRX) in its second quarter 2025 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) manufactures automation sub-systems, industrial powertrain solutions, power transmission components, and air moving products. Its share price rose 28% on the heels of its first quarter, which stood in stark contrast to the market’s lowered expectations and a reduced outlook. Most of the revenue upside came from the Power Efficiency Solutions segment. Management reiterated forward guidance as they have not seen any evidence of a demand slowdown and believe they are well positioned to navigate the impact of tariffs.”

Regal Rexnord Corporation (RRX): Among Billionaire Ken Fisher’s Industrial Stock Picks with Huge Upside Potential

Regal Rexnord Corporation (NYSE:RRX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Regal Rexnord Corporation (NYSE:RRX) at the end of the second quarter, which was 38 in the previous quarter. While we acknowledge the risk and potential 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 Large Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.