TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. At the beginning of 2025, a general sense of optimism prevailed among businesses and markets. The expectations for a pro-business atmosphere with reduced regulatory burdens boosted global markets in January. However, in February, delays and uncertainties surrounding U.S. policies led to a more cautious market response, culminating in a significant decline in March. In this environment, the strategy returned -3.29% (gross) and -3.48% (net) while the Russell Midcap Growth Index returned -7.12%. 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. Mid Cap Growth Strategy highlighted stocks such as Insmed Incorporated (NASDAQ:INSM). Insmed Incorporated (NASDAQ:INSM) is a biopharmaceutical company that develops therapeutic products for patients with serious and rare diseases. The one-month return of Insmed Incorporated (NASDAQ:INSM) was 50.33%, and its shares gained 53.70% of their value over the last 52 weeks. On June 18, 2025, Insmed Incorporated (NASDAQ:INSM) stock closed at $99.46 per share, with a market capitalization of $18.893 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Insmed Incorporated (NASDAQ:INSM) in its Q1 2025 investor letter:
“New to the strategy was Insmed Incorporated (NASDAQ:INSM), a biopharma developer of treatments for various pulmonary diseases. Insmed has one commercially approved treatment for lung infections, however, we see its developing product Brensocatib as driving future price appreciation. In 2024, Insmed reported positive data for Brensocatib in bronchiectasis, paving the way for a 2025 FDA approval and commercial launch. This February, the FDA announced it was giving Brensocatib’s priority review with an expected action date in August.”
A biopharmaceutical research team taking notes in front of a laboratory’s microscope.
Insmed Incorporated (NASDAQ:INSM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held Insmed Incorporated (NASDAQ:INSM) at the end of the first quarter, which was 72 in the previous quarter. While we acknowledge the potential of Insmed Incorporated (NASDAQ:INSM) 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 Insmed Incorporated (NASDAQ:INSM) and shared the list of best growth stocks to buy according to billionaires. 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 INSM 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.
