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 HubSpot, Inc. (NYSE:HUBS). HubSpot, Inc. (NYSE:HUBS) is a software company that offers a cloud-based customer relationship management (CRM) platform for businesses. On June 30, 2026, HubSpot, Inc. (NYSE:HUBS) stock closed at $182.51 per share. One-month return of HubSpot, Inc. (NYSE:HUBS) was -17.95%, and its shares lost 66.57% over the past 52 weeks. HubSpot, Inc. (NYSE:HUBS) has a market capitalization of $9.34 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding HubSpot, Inc. (NYSE:HUBS) in its Q1 2026 investor letter:
“Among the wide variety of Information Technology companies, we prefer critical systems providers, specialized component designers, systems that improve client productivity or efficiency, and others that are growing their share of corporate IT budgets. HubSpot, Inc. (NYSE:HUBS) offers a cloud-based customer relationship management platform. We exited the position due to the combination of potential AI disruption and the seat-based model’s potential challenges. The stock tumbled -43% before it was sold.”
HubSpot, Inc. (NYSE:HUBS) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 46 hedge fund portfolios held HubSpot, Inc. (NYSE:HUBS) at the end of the first quarter, compared to 56 in the previous quarter. While we acknowledge the risk and potential of HubSpot, Inc. (NYSE:HUBS) 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 HubSpot, Inc. (NYSE:HUBS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered HubSpot, Inc. (NYSE:HUBS) and shared the list of stocks Jim Cramer discussed. 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.
