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 CeriBell, Inc. (NASDAQ:CBLL). CeriBell, Inc. (NASDAQ:CBLL) is a medical technology company. The one-month return of CeriBell, Inc. (NASDAQ:CBLL) was 8.02%, and YTD its shares lost 30.80% of their value. On June 20, 2025, CeriBell, Inc. (NASDAQ:CBLL) stock closed at $17.91 per share, with a market capitalization of $647.321 million.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding CeriBell, Inc. (NASDAQ:CBLL) in its Q1 2025 investor letter:
“Our preferences among Health Care stocks are those companies providing novel therapies for unmet needs that deserve premium pricing, or specialized service providers. There were two additions to the sector this quarter. CeriBell, Inc. (NASDAQ:CBLL) is a commercial-stage medical technology company engaged in transforming diagnoses and treatment for patients with serious neurological conditions. Its products enable early detection and management of seizure patients thereby enabling more precise patient care.”
A scientist in a laboratory researching a neurological disease.
CeriBell, Inc. (NASDAQ:CBLL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held CeriBell, Inc. (NASDAQ:CBLL) at the end of the first quarter, which was 17 in the previous quarter. In the first quarter of 2025, CeriBell, Inc. (NASDAQ:CBLL) generated total revenue of $20.5 million, marking a 42% increase compared to the same quarter last year and an 11% rise from the fourth quarter of 2024. While we acknowledge the potential of CeriBell, Inc. (NASDAQ:CBLL) 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 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 CBLL 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.
