TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The Strategy fell 7.72% (net) in the quarter compared to -6.35% for the Russell Midcap Growth Index. In the first quarter, markets navigated geopolitical tensions and economic resilience alongside temporary global tariffs. High oil prices and supply chain disruptions followed U.S. and Israeli involvement in Iran, prompting a shift to safer assets and a reevaluation of supply chains and energy dependencies. Central banks maintained steady policies despite energy-driven inflation. In this environment, the Strategy remains focused on disciplined management teams with durable competitive advantages. Please review the Strategy’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, TimesSquare Capital U.S. Mid Cap Growth Strategy highlighted MKS Inc. (NASDAQ:MKSI) as a newly added position. MKS Inc. (NASDAQ:MKSI) is a US-based technology company that provides foundational technology solutions to semiconductor manufacturing, electronics and packaging, and specialty industrial applications. On June 29, 2026, MKS Inc. (NASDAQ:MKSI) closed at $416.00 per share, reflecting a market capitalization of $28.09 billion. MKS Inc. (NASDAQ:MKSI) posted a one-month return of 25.54%, and its shares gained 313.03% over the past 52 weeks.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding MKS Inc. (NASDAQ:MKSI) in its Q1 2026 investor letter:
“Among the wide variety of Information Technology companies, we prefer critical systems providers, specialized component designers, systems that improve client productivity or efficiency, and others that are growing their share of corporate IT budgets. New to the sector this quarter was MKS Inc. (NASDAQ:MKSI), a provider of foundational technology solutions to semiconductor manufacturing, electronics & packaging, and specialty industrial applications. The company is well positioned to benefit from strong semiconductor AI-related spending across foundry, logic, and memory.”
MKS Inc. (NASDAQ:MKSI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 71 hedge fund portfolios held MKS Inc. (NASDAQ:MKSI) at the end of the first quarter, up from 52 in the previous quarter. In Q1 2026, MKS Inc. (NASDAQ:MKSI) reported revenue of $1.08 billion, up 4% sequentially and 15% year-over-year. While we acknowledge the risk and potential of MKS Inc. (NASDAQ:MKSI) 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 MKS Inc. (NASDAQ:MKSI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered MKS Inc. (NASDAQ:MKSI) and shared the list of best photonics stocks to buy. In addition, please check out our hedge fund investor letters Q1 2026 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.
