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 Robinhood Markets, Inc. (NASDAQ:HOOD). Robinhood Markets, Inc. (NASDAQ:HOOD) is a US-based financial services company that provides a trading platform for stocks, exchange-traded funds, American depository receipts, options, gold, and cryptocurrencies. On June 30, 2026, Robinhood Markets, Inc. (NASDAQ:HOOD) closed at $100.28 per share. One-month return of Robinhood Markets, Inc. (NASDAQ:HOOD) was 21.04%, and its shares gained 2.35% over the past 52 weeks. Robinhood Markets, Inc. (NASDAQ:HOOD) has a market capitalization of $90.30 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Robinhood Markets, Inc. (NASDAQ:HOOD) in its Q1 2026 investor letter:
“In the Financials sector, we tend to avoid banks experiencing credit deterioration or rising deposit costs, preferring asset managers, specialized insurance companies, or financial technology providers. Robinhood Markets, Inc. (NASDAQ:HOOD) operates a financial services platform enabling users to invest in stocks, exchange-traded funds, American depository receipts, and cryptocurrency. In the latest results, core earnings were weaker due to lower net revenue, resulting in a -39% pullback. Management struck a constructive tone on the 2026 outlook and expects revenue growth to continue to exceed expense growth. We had trimmed back the position prior to Q4 earnings.”
Robinhood Markets, Inc. (NASDAQ:HOOD) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 84 hedge fund portfolios held Robinhood Markets, Inc. (NASDAQ:HOOD) at the end of the first quarter, up from 83 in the previous quarter. In Q1 2026, Robinhood Markets, Inc. (NASDAQ:HOOD) reported revenue of $1.1 billion, up 15% year-over-year. While we acknowledge the risk and potential of Robinhood Markets, Inc. (NASDAQ:HOOD) 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 Robinhood Markets, Inc. (NASDAQ:HOOD) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Robinhood Markets, Inc. (NASDAQ:HOOD) and shared Grow Funds’ insights 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
