TimesSqure Capital U.S. Small Cap Growth Strategy Increased Its Stake in BJ’s Wholesale Club Holdings (BJ)

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned 11.28% (gross) and 11.02% (net), compared to the Russell 2000 Growth Index by 11.97%. Equities posted double-digit returns in the second quarter as global economic activity measures lifted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, TimesSquare Capital Small Cap Growth Strategy highlighted stocks such as BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ). BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) operates warehouse clubs that provide groceries, general merchandise, gasoline and other ancillary services, coupon books, and promotions. The one-month return of BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) was -5.27%, and its shares gained 20.67% of their value over the last 52 weeks. On September 10, 2025, BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) stock closed at $97.44 per share, with a market capitalization of $12.838 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) in its second quarter 2025 investor letter:

“Our preferences in the Consumer-oriented sectors lean toward value-oriented or specialty retailers, franchise models, or premium brands. BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) operates membership warehouse clubs. First quarter profits and earnings outpaced Street estimates. Strong momentum in consumables offset a slight decline in seasonal big-ticket categories. Investors appear to have been disappointed by management’s decision to maintain full-year guidance, though we view this as a conservative approach. We added to the BJ’s position on its -6% pullback.”

Why BJ’s Wholesale Club Holdings Inc (BJ) is Surging in 2025

BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) at the end of the second quarter, which was 43 in the previous quarter. BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) reported net sales of approximately $5.3 billion in Q2 2025, growing 3.4% over the prior year. While we acknowledge the risk and potential BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) 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 BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) and shared the list of best grocery stocks to buy according to hedge funds. TimesSquare Capital U.S. Focus Growth Strategy reduced its position in BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) in the previous quarter. In addition, please check out our hedge fund investor letters Q2 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.