TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy returned 3.70% (gross) and 3.45% (net) in the fourth quarter compared to a 1.22% return for the Russell 2000 Growth Index. In 2025, the strategy returned 6.91% (gross) and 5.85% (net) compared to 13.01% for the index. Global equity markets ended the quarter on a positive note, with Europe leading, followed by Emerging Markets. In most markets, large caps outperformed small caps. The trade truce between the United States and China was prolonged for an additional year, but global geopolitical concerns, whether related to tariffs or not, persisted. Third-quarter GDP exceeded expectations, but consumer caution persists amid ongoing labor-market softening, influencing the Fed’s decision on interest-rate cuts. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, TimesSquare Capital U.S. Small Cap Growth Strategy highlighted Warby Parker Inc. (NYSE:WRBY). Warby Parker Inc. (NYSE:WRBY) is a leading eyewear brand and retailer that offers eyeglasses and sunglasses; and single-vision, progressive, light-responsive, polarized, blue-light-filtering, tinted, non-prescription, and contact lenses. On April 1, 2026, Warby Parker Inc. (NYSE:WRBY) closed at $21.41 per share. One-month return of Warby Parker Inc. (NYSE:WRBY) was -20.32%, and its shares gained 32.82% over the past 52 weeks. Warby Parker Inc. (NYSE:WRBY) has a market capitalization of $2.62 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Warby Parker Inc. (NYSE:WRBY) in its fourth quarter 2025 investor letter:
“Our preferences in the Consumer-oriented sectors lean toward value-oriented or specialty retailers, franchise models, premium brands, or support services for other consumer companies. It was a rollercoaster ride for shares in Warby Parker Inc. (NYSE:WRBY), which ended the quarter down by -22%. The online eyewear retailer’s shares slid down sharply through October as the market was cautious ahead of November’s fiscal quarterly report, and we added to our position. Warby reported lower-than-expected sales, though better margins led to higher earnings. After speaking with management, we believe Warby’s core operations were stable, and the prevailing stock price undervalued the benefits from 2026’s Google’s smart glasses launch. Toward the end of the year, enthusiasm for smart glasses lifted Warby’s shares, and we trimmed the position.”
Warby Parker Inc. (NYSE:WRBY) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 48 hedge fund portfolios held Warby Parker Inc. (NYSE:WRBY) at the end of the fourth quarter, up from 31 in the previous quarter. While we acknowledge the risk and potential of Warby Parker Inc. (NYSE:WRBY) 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 Warby Parker Inc. (NYSE:WRBY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Warby Parker Inc. (NYSE:WRBY) and shared a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q4 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.
