TimesSquare U.S. Focus Growth Strategy’s New Addition: Interactive Brokers Group (IBKR)

TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, all the major asset classes posted positive returns except fixed income assets outside the US. The strategy returned 4.00% (gross) and 3.78% (net) compared to a 2.78% return for the Russell Midcap Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, TimesSquare Capital U.S. Focus Growth Strategy highlighted stocks such as Interactive Brokers Group, Inc. (NASDAQ:IBKR). Founded in 1977, Interactive Brokers Group, Inc. (NASDAQ:IBKR) is an automated electronic broker. The one-month return of Interactive Brokers Group, Inc. (NASDAQ:IBKR) was 1.17%, and its shares gained 42.40% of their value over the last 52 weeks. On December 12, 2025, Interactive Brokers Group, Inc. (NASDAQ:IBKR) stock closed at $64.15 per share, with a market capitalization of $109.051 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Interactive Brokers Group, Inc. (NASDAQ:IBKR) in its third quarter 2025 investor letter:

“In the Financials sector we tend to avoid banks that face credit deterioration or rising deposit costs, preferring either asset managers, specialized insurance companies, or financial technology providers. New to the sector this quarter was Interactive Brokers Group, Inc. (NASDAQ:IBKR), a leading global electronic broker. They offer low-cost execution, clearing, and settlement for retail and institutional customers.”

Interactive Brokers (IBKR) Gets 8% Upside from Higher Price Target, Impressive Earnings

Interactive Brokers Group, Inc. (NASDAQ:IBKR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 68 hedge fund portfolios held Interactive Brokers Group, Inc. (NASDAQ:IBKR) at the end of the third quarter, up from 71 in the previous quarter. In the third quarter of 2025, Interactive Brokers Group, Inc.’s (NASDAQ:IBKR) commission revenue rose 23% year-over-year to $537 million. While we acknowledge the risk and potential of Interactive Brokers Group, Inc. (NASDAQ:IBKR) 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 Interactive Brokers Group, Inc. (NASDAQ:IBKR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Interactive Brokers Group, Inc. (NASDAQ:IBKR) and shared Baron Focused Growth Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 2025 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.