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 ServiceTitan, Inc. (NASDAQ:TTAN). ServiceTitan, Inc. (NASDAQ:TTAN) is an American cloud-based software company that provides solutions for connecting and managing a range of business workflows. On June 29, 2026, ServiceTitan, Inc. (NASDAQ:TTAN) closed at $70.20 per share. One-month return of ServiceTitan, Inc. (NASDAQ:TTAN) was -6.41%, and its shares lost 35.75% over the past 52 weeks. ServiceTitan, Inc. (NASDAQ:TTAN) has a market capitalization of $6.69 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding ServiceTitan, Inc. (NASDAQ:TTAN) in its Q1 2026 investor letter:
“ServiceTitan, Inc. (NASDAQ:TTAN) provides an end-to-end cloud-based software platform to connect and manage a range of business workflows for trade-based businesses. Its shares declined by -40% as investors sold everything software-related. The company has been gaining traction in new markets, supported by recent enterprise wins and increased adoption of its Pro products and AI virtual agents, with contract sizes doubling. Fiscal fourth quarter results were solid, with overall subscription revenues above the street. There was continued strength in Pro products, commercial, and roofing. Qualitative commentary from management suggests an accelerating growth potential as AI usage revenues ramp, and that is not baked into guidance.”
ServiceTitan, Inc. (NASDAQ:TTAN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 44 hedge fund portfolios held ServiceTitan, Inc. (NASDAQ:TTAN) at the end of the first quarter, compared to 48 in the previous quarter. While we acknowledge the risk and potential of ServiceTitan, Inc. (NASDAQ:TTAN) 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 ServiceTitan, Inc. (NASDAQ:TTAN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered ServiceTitan, Inc. (NASDAQ:TTAN) and shared Osterweis Opportunity Fund’s 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.
