TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. At the beginning of 2025, a general sense of optimism prevailed among businesses and markets. The expectations for a pro-business atmosphere with reduced regulatory burdens boosted global markets in January. However, in February, delays and uncertainties surrounding U.S. policies led to a more cautious market response, culminating in a significant decline in March. In this environment, the strategy returned -3.29% (gross) and -3.48% (net) while the Russell Midcap Growth Index returned -7.12%. 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. Mid Cap Growth Strategy highlighted stocks such as Fair Isaac Corporation (NYSE:FICO). Fair Isaac Corporation (NYSE:FICO) develops analytic, software, and digital decision-making technologies and services. The one-month return of Fair Isaac Corporation (NYSE:FICO) was 3.72%, and its shares gained 24.84% of their value over the last 52 weeks. On June 18, 2025, Fair Isaac Corporation (NYSE:FICO) stock closed at $1,763.64 per share, with a market capitalization of $42.93 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Fair Isaac Corporation (NYSE:FICO) in its Q1 2025 investor letter:
“Lastly, we initiated a position in Fair Isaac Corporation (NYSE:FICO), which provides its FICO credit score and related software to lenders including all major U.S. banks, credit card issuers, mortgage lenders, and auto loan originators. FICO’s operations are evenly divided between scores and software. In the former, FICO has a near monopoly because the scores are used in over 90% of lending decisions. Its software offerings provide tools for customer development, fraud detection, and communication. We have a positive outlook as the mortgage market begins to recover—both purchases and refinancings—and FICO’s pricing power remains firmly intact.”
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Fair Isaac Corporation (NYSE:FICO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held Fair Isaac Corporation (NYSE:FICO) at the end of the first quarter, which was 60 in the previous quarter. In the fiscal second quarte of 2025, Fair Isaac Corporation (NYSE:FICO) reported revenue of $499 million, up 15% year-over-year. While we acknowledge the potential of Fair Isaac Corporation (NYSE:FICO) 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 Fair Isaac Corporation (NYSE:FICO) and shared the list of best software stocks to buy. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of FICO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
