TSCM U.S. Small Cap Growth Strategy Reduced Its Position in Krystal Biotech (KRYS)

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 Krystal Biotech, Inc. (NASDAQ:KRYS). Krystal Biotech, Inc. (NASDAQ:KRYS) is a commercial-stage biotechnology company that develops genetic medicines for patients with rare diseases. The one-month return of Krystal Biotech, Inc. (NASDAQ:KRYS) was -3.97%, and its shares lost 28.39% of their value over the last 52 weeks. On September 11, 2025, Krystal Biotech, Inc. (NASDAQ:KRYS) stock closed at $144.36 per share, with a market capitalization of $4.178 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Krystal Biotech, Inc. (NASDAQ:KRYS) in its second quarter 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. Krystal Biotech, Inc. (NASDAQ:KRYS) is a biotechnology company developing and commercializing genetic medicines for patients with rare diseases. First quarter results missed the mark with declining levels of new patient starts and sales. While the quarterly results are disappointing, Vyjuvek is viewed as a durable and high-margin business. That therapy is a topical gel that promotes wound healing for patients with a rare and serious skin disorder called dystrophic epidermolysis. Krystal Biotech currently has seventeen sales reps and plans to add eight more. We reduced the position, which declined by -24% during the quarter.”

Is Krystal Biotech, Inc. (KRYS) the Best Cancer Stock to Invest in for Long-Term Gain?

Krystal Biotech, Inc. (NASDAQ:KRYS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Krystal Biotech, Inc. (NASDAQ:KRYS) at the end of the second quarter, which was 30 in the previous quarter. While we acknowledge the risk and potential Krystal Biotech, Inc. (NASDAQ:KRYS) 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 Krystal Biotech, Inc. (NASDAQ:KRYS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Krystal Biotech, Inc. (NASDAQ:KRYS) and shared the list of best cancer stocks to invest in for long term gains. 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.