TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The broad-based downturn in US equities underperformed overseas markets in the first quarter. In this negative environment, the strategy outperformed the index in the first quarter. The strategy returned 2.42% (gross) and 2.20% (net) compared to a -7.12% return for the Russell Midcap Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, TimesSquare Capital U.S. Focus Growth Strategy highlighted stocks such as CrowdStrike Holdings, Inc. (NASDAQ:CRWD). CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a global cybersecurity solutions provider. The one-month return of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) was 16.94%, and its shares gained 26.98% of their value over the last 52 weeks. On May 16, 2025, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) stock closed at $439.26 per share with a market capitalization of $109.408 billion.
TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its Q1 2025 investor letter:
“In a volatile quarter, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) ended with a 3% gain. A cloud-based endpoint security provider that secures a range of devices, endpoints, and cloud environments, CrowdStrike climbed in the first half of the quarter on a wave of optimism for software companies as beneficiaries of lower cost to implement AI, which could lead to broader AI adoption among organizations. We trimmed our position during that period. CrowdStrike’s shares then retreated following its report of better-than-anticipated results coupled with a less-optimistic outlook as some one-time costs remain related to last year’s outage. Given the transitional nature of that, and our view that annual recuring revenues should reaccelerate later this year, we began to add back to our holdings.”
Security personnel at their consoles, monitoring a global network of threats in real-time.
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is in not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 77 hedge fund portfolios held CrowdStrike Holdings, Inc. (NASDAQ:CRWD) at the end of the fourth quarter which was 74 in the previous quarter. In the third quarter of fiscal 2025, CrowdStrike Holdings, Inc.’s (NASDAQ:CRWD) subscription revenue grew 31% year-over-year and total revenue exceeded $1 billion. While we acknowledge the potential of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In another article, we covered CrowdStrike Holdings, Inc. (NASDAQ:CRWD) and shared the list of trending AI stocks on Wall Street. Aristotle Atlantic Large Cap Growth Strategy purchased CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in Q1 2025, recognizing its strong growth in the expanding cloud cybersecurity market. In addition, please check out our hedge fund investor letters Q1 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.
