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 Brunswick Corporation (NYSE:BC). Brunswick Corporation (NYSE:BC) designs, manufactures, and markets recreational marine products that operate through Propulsion, Engine P&A, Navico Group, and Boat segments. The one-month return of Brunswick Corporation (NYSE:BC) was 8.31%, and its shares lost 24.66% of their value over the last 52 weeks. On June 18, 2025, Brunswick Corporation (NYSE:BC) stock closed at $55.52 per share, with a market capitalization of $3.647 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Brunswick Corporation (NYSE:BC) in its Q1 2025 investor letter:
“Leaving the strategy this quarter was Brunswick Corporation (NYSE:BC), which manufactures recreational marine equipment under the Mercury and Boston Whaler brands. We began to trim the position in late 2024 when it seemed that Brunswick’s demand recovery was delayed. Brunswick showed better-than-expected revenues and earnings against low expectations, however provided a 2025 outlook well below expectations because boat dealers remained hesitant to resume normal order levels. With a recovery in demand further delayed and financing costs still high, we sold our remaining holdings.”
An aerial view of a boat sailing in the open sea at sunset.
Brunswick Corporation (NYSE:BC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Brunswick Corporation (NYSE:BC) at the end of the first quarter, which was 30 in the previous quarter. While we acknowledge the potential of Brunswick Corporation (NYSE:BC) 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 Brunswick Corporation (NYSE:BC) and shared the list of best boating 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 BC 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.
