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 Targa Resources Corp. (NYSE:TRGP). Targa Resources Corp. (NYSE:TRGP) is a North American midstream services provider and independent infrastructure company that owns, operates, acquires, and develops a portfolio of complementary domestic infrastructure assets. On July 1, 2026, Targa Resources Corp. (NYSE:TRGP) closed at $257.81 per share, reflecting a market capitalization of $55.34 billion. Targa Resources Corp. (NYSE:TRGP) posted a one-month return of -3.58%, while its shares gained 48.58% over the past 52 weeks.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Targa Resources Corp. (NYSE:TRGP) in its Q1 2026 investor letter:
“We often see the ebb and flow of the Energy sector tied to underlying commodity prices. In this area, we seek low-cost exploration & production companies with high-yielding acreage or specialized service providers. Targa Resources Corp. (NYSE:TRGP) owns, operates, acquires, and develops natural gas infrastructure assets. The geopolitical tensions in Iran contributed to stock price appreciation. A solid fourth quarter, driven by strong production volumes, led to a 37% stock price increase. Management announced increased planned capital expenditures and announced construction of a new natural gas liquids (NGL) plant in Delaware, as well as expansion of their NGL pipeline.”
Targa Resources Corp. (NYSE:TRGP) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 49 hedge fund portfolios held Targa Resources Corp. (NYSE:TRGP) at the end of the first quarter, up from 45 in the previous quarter. While we acknowledge the risk and potential of Targa Resources Corp. (NYSE:TRGP) 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 Targa Resources Corp. (NYSE:TRGP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Targa Resources Corp. (NYSE:TRGP) and shared a bullish thesis 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.
