TimesSquare Capital Sold Impinj (PI) as it Entered Inventory Correction Phase

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund returned -9.41% (gross) and -9.64% (net), compared to a -11.12% return for the Russell 2000 Growth Index. There was a broad positive sentiment in the market at the beginning of 2025. Expectations for a pro-business and soft regulatory environment lifted global markets in January. However, delays and uncertainties surrounding U.S. policies led to a significant downturn in March. 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. Small Cap Growth Strategy highlighted stocks such as Impinj, Inc. (NASDAQ:PI). Impinj, Inc. (NASDAQ:PI) offers a cloud connectivity platform. The one-month return of Impinj, Inc. (NASDAQ:PI) was -8.66%, and its shares lost 29.56% of their value over the last 52 weeks. On June 23, 2025, Impinj, Inc. (NASDAQ:PI) stock closed at $106.34 per share, with a market capitalization of $3.002 billion.

TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Impinj, Inc. (NASDAQ:PI) in its Q1 2025 investor letter:

“Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, systems that improve productivity or efficiency for their clients, and others that are growing their shares of corporate IT budgets. Impinj, Inc. (NASDAQ:PI) operates a cloud connectivity platform in the Americas, Asia-Pacific, Europe, the Middle East, and Africa. We decided to liquidate the position because this company entered an inventory correction phase and those tend to be multiple quarter events. Its shares fell -28% for the time it was held in the quarter.”

Is Impinj, Inc. (PI) the Tech Stock That Trump’s Fellow Republican Bought Amid Market Rout?

A close-up of a computer engineer working on the code for a cloud connectivity platform.

Impinj, Inc. (NASDAQ:PI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Impinj, Inc. (NASDAQ:PI) at the end of the first quarter, which was 37 in the previous quarter. In the first quarter of 2025, Impinj, Inc. (NASDAQ:PI) generated revenue of $74.3 million, down 19% sequentially from fourth quarter 2024, and down 3% from Q1 2024. While we acknowledge the potential of Impinj, Inc. (NASDAQ:PI) 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 Impinj, Inc. (NASDAQ:PI) and shared the list of tech stocks that Trump’s fellow Republican bought amid market rout. 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 PI 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.