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 Verona Pharma plc (NASDAQ:VRNA). Verona Pharma plc (NASDAQ:VRNA) is a biopharmaceutical company. The one-month return of Verona Pharma plc (NASDAQ:VRNA) was 25.66%, and its shares gained 501.15% of their value over the last 52 weeks. On June 20, 2025, Verona Pharma plc (NASDAQ:VRNA) stock closed at $94.32 per share, with a market capitalization of $8.015 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Verona Pharma plc (NASDAQ:VRNA) 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. Verona Pharma plc (NASDAQ:VRNA) is focused on developing therapies for respiratory diseases. Their Ensifentrine received FDA approval for treating chronic obstructive pulmonary disease. The first two quarters of the product launch exceeded estimates.
A patient in a clinic, taking a medication dose from a nebulizer to treat a respiratory disease.
Verona Pharma plc (NASDAQ:VRNA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Verona Pharma plc (NASDAQ:VRNA) at the end of the first quarter, which was 42 in the previous quarter. Verona Pharma plc (NASDAQ:VRNA) reported revenue of $76.3 million in the first quarter. While we acknowledge the potential of Verona Pharma plc (NASDAQ:VRNA) 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 another article, we covered Verona Pharma plc (NASDAQ:VRNA) and shared the list of biotech stocks screaming a buy. 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 VRNA 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.
