TimesSquare Capital Management
TimesSquare U.S. Small Cap Growth Strategy
US Small-cap Growth
Mar 2026 → Sep 2026
Our archive holds 3 letters from this strategy, behind 4 investment theses and positions in 42 companies. Every quote below is copied verbatim from the letter it came from.
3 letters in a year · follow all of TimesSquare Capital Management for every strategy.
Performance
as of Sep 30, 2026 · net of fees · USD
- YTD+6.6%index +10.7%
- 1Y+10.3%index +12.1%
- 3Y · /yr+12.3%index +17.5%
- 5Y · /yr+2.6%index +4.7%
- 10Y · /yr+9.4%index +9.9%
- Inception · /yr+8.4%index +6.6%
Index: Russell 2000 Growth
| YTD | 1Y | 3Yper year | 5Yper year | 10Yper year | Since inceptionper year | |
|---|---|---|---|---|---|---|
| TimesSquare U.S. Small Cap Growth Strategy | +6.6% | +10.3% | +12.3% | +2.6% | +9.4% | +8.4% |
| Russell 2000 Growth | +10.7% | +12.1% | +17.5% | +4.7% | +9.9% | +6.6% |
Since inception: Since Inception (10/01/2000)
Disclaimer
These figures are copied from the manager’s latest letter, as of Sep 30, 2026. They were extracted automatically, have not been verified by HF Best Ideas and may contain errors. They cover a single share class, in the currency and fee basis stated above; other share classes and your own returns will differ. This is not investment advice, nor an offer to buy or sell any fund. Past performance does not predict future returns.
Read full disclosures →What it bought and sold
We initiated the position with the view that the company is at an inflection point moving from a mature-stage content-collaboration vendor to a faster growing platform.
As its market capitalization outgrew our small cap range, we completed the exit we began last quarter.
We initiated the position given the bank's above- average return on tangible common equity and efficient expense base, together with a low bar of expectations for regional banks as a group.
However, we trimmed the position into strength because we felt much of the good news was reflected in the prevailing valuation.
We added to the position early in the quarter, encouraged by strong new-customer demand and an upgraded sales team expected to reach full productivity soon.
We viewed the price reaction as extreme, especially because MIRM’s commercial business continues to grow and this should be a temporary delay, so we added to our position.
After trimming ahead of its earnings report on concern that expectations had become elevated, we sold the remaining small position.
Credo Technology, a provider of high-speed connectivity solutions for data centers, soared 190% on surging hyperscaler demand for its active electrical cable products.
During the quarter, we exited Planet Fitness, a franchisor and operator of fitness clubs, which fell -38% while held within the portfolio.
We reduced our position on persistent weakness due to a combination of multiple compression and weak sentiment regarding AI monetization.
Bloom Energy, a manufacturer of solid-oxide fuel cell power platforms, surged 133% on accelerating demand for on-site and data center power generation, and we trimmed into that strength.
MACOM Technology Solutions, a provider of analog and mixed-signal semiconductor solutions for industrial and communications markets, rose 71% on continued strength across its defense and data center end markets.
The company reported better-than-feared first-quarter revenue, but near-term macroeconomic uncertainty continued to weigh on its stock, prompting us to trim our position as a result.
Conversely, we reduced our position in BJ's Wholesale Club, which operates membership warehouse clubs in the eastern half of the U.S.
Hamilton Lane, a provider of private markets investment solutions, was the sector's largest detractor, falling -21% as the space contended with ongoing concerns around private credit redemptions and optimistic marks on software investments; our granular analysis of the company's exposures continues to suggest the decline is overdone, and we trimmed the position modestly.
One of the new positions we initiated this quarter is Dianthus Therapeutics, a clinical-stage biotechnology company developing novel complement-pathway antibodies for severe autoimmune and neuromuscular diseases, led by its lead candidate DNTH103.
- AddedPursuit Attractions and HospitalityJun 2026
We added to our position in Pursuit Attractions and Hospitality, an operator of experiential travel attractions and hospitality assets.
We added to the position on weakness.
We exited the Amplitude Inc. position, which offers an AI analytics platform that helps analyze customer behavior within digital products.
We trimmed the position on the strength of its 36% stock price appreciation.
We decided to trim back the position.
Also held
- Repligen Corporation
- JBT Marel
- Regal Rexnord
- Onestream Inc.
Its investment theses
- Netskope, Inc.Sep 2026Netskope, Inc. is a cloud security platform with accelerating ARR growth, raised guidance, and improving sales execution.
- Regal RexnordSep 2026Regal Rexnord makes motion control and climate solutions components, and the investment case rests on accelerating orders and a discounted valuation despite near-term margin pressure.
- Mirum PharmaceuticalsSep 2026Mirum Pharmaceuticals develops liver disease treatments, and the investment case is supported by commercial growth and a potentially valuable PSC therapy despite a regulatory delay.
- Box, Inc.Sep 2026Box, Inc. is transitioning into an AI-enabled content platform with a credible path to sustained double-digit growth and higher margins.