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 Infinity Natural Resources, Inc. (NYSE:INR). Infinity Natural Resources, Inc. (NYSE:INR) is an oil and natural gas company that engages in the acquisition, exploration, and development of properties to produce oil, natural gas, and natural gas liquids. The one-month return of Infinity Natural Resources, Inc. (NYSE:INR) was 13.79%, and its shares gained 9.40% of their value over the last three months. On June 20, 2025, Infinity Natural Resources, Inc. (NYSE:INR) stock closed at $19.56 per share, with a market capitalization of $298.046 million.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Infinity Natural Resources, Inc. (NYSE:INR) in its Q1 2025 investor letter:
“We often see the ebb and flow of the Energy sector tied to underlying commodity prices. New to the sector this quarter was Infinity Natural Resources, Inc. (NYSE:INR), an exploration and production company with operations in the Appalachian Basin. The company possesses compelling acreage containing oil and natural gas, with strong production growth projections, and attractive well economics.”
A vertical offshore oil rig in the middle of a calm sea, symbolizing the company’s oil and gas exploration.
Infinity Natural Resources, Inc. (NYSE:INR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Infinity Natural Resources, Inc. (NYSE:INR) at the end of the first quarter, which was 0 in the previous quarter. While we acknowledge the potential of Infinity Natural Resources, Inc. (NYSE:INR) 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 Infinity Natural Resources, Inc. (NYSE:INR) and shared the list of cheap new stocks to buy according to analysts. 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 INR 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.
