TSCM U.S. Small Cap Growth Strategy Trimmed Credo Technology Group Holding Ltd. (CRDO) Following 130% Appreciation

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 Credo Technology Group Holding Ltd (NASDAQ:CRDO). Credo Technology Group Holding Ltd (NASDAQ:CRDO) offers a wide range of high-speed connectivity solutions for optical and electrical Ethernet applications. The one-month return of Credo Technology Group Holding Ltd (NASDAQ:CRDO) was 36.47%, and its shares gained 458.82% of their value over the last 52 weeks. On September 11, 2025, Credo Technology Group Holding Ltd (NASDAQ:CRDO) stock closed at $159.32 per share, with a market capitalization of $27.562 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Credo Technology Group Holding Ltd (NASDAQ:CRDO) in its second quarter 2025 investor letter:

“Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, systems that improve productivity or efficiency for their clients, and others that are growing their shares of corporate IT budgets. Credo Technology Group Holding Ltd (NASDAQ:CRDO) provides high-speed connectivity solutions for optical and electrical Ethernet applications. Fiscal fourth quarter revenues and earnings were well above estimates, as was fiscal first quarter guidance. Credo has experienced strong momentum in their core active electrical cable business. We trimmed the position as the stock jumped 130%.”

Why Credo Technology Group Holding Ltd (CRDO) Skyrocketed On Tuesday

Credo Technology Group Holding Ltd (NASDAQ:CRDO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held Credo Technology Group Holding Ltd (NASDAQ:CRDO) at the end of the second quarter, which was 41 in the previous quarter. Credo Technology Group Holding Ltd (NASDAQ:CRDO) reported revenue of $223 million in fiscal Q1 2026, an increase of 31% sequentially and 274% year over year. While we acknowledge the risk and potential Credo Technology Group Holding Ltd (NASDAQ:CRDO) 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 Credo Technology Group Holding Ltd (NASDAQ:CRDO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Credo Technology Group Holding Ltd (NASDAQ:CRDO) and shared the list of big names with double-digit upsides. 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.