| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 13.7% | -3.8% | 13.9% |
| 2025 |
|---|
| 13.9% |
TimesSquare Capital Management's U.S. FOCUS Growth Strategy delivered -3.76% net returns in Q4 2025 but achieved strong full-year performance of 13.88%, outperforming the Russell Midcap Growth Index. The concentrated portfolio of approximately 15 mid-cap growth stocks demonstrated resilience across diversified sectors including technology, healthcare, industrials, and energy. Key contributors included Carpenter Technology (+29%) and TPG (+12%), while detractors included Veeva Systems (-25%) and O'Reilly Automotive (-15%). The strategy maintains its fundamental research-driven approach, seeking companies with quality management, competitive advantages, and sustainable growth. New positions included Performance Food Group and Karman Holdings, a defense contractor positioned for growth in space and defense spending. Looking ahead to 2026, the manager anticipates catalysts including AI adoption acceleration, potential trade policy changes, and corporate capital spending driven by tax reforms. Despite ongoing geopolitical uncertainties and market quality concerns, the team remains focused on identifying management teams capable of creating economic value through fundamental business growth.
The strategy focuses on mid-cap growth companies with quality management, distinct competitive advantages, and strong sustainable growth, maintaining concentrated positions in approximately 15 stocks across diversified sectors while navigating market volatility through fundamental research-driven selection.
The manager expects the global landscape to continue evolving, shaped by trends toward national economic resilience and shifting trade dynamics. They anticipate significant acceleration in AI adoption and remain focused on fundamentals despite ongoing geopolitical uncertainty.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 21 2026 | 2025 Q4 | APH, COR, CRS, CYBR, EME, HUBS, IBKR, LNG, ORLY, PANW, PFGC, TPG, VEEV, VRSK | defense, energy, financials, growth, healthcare, industrials, mid cap, technology |
IBKR VEEV KRMN APH HUBS |
The portfolio initiated a position in Karman Holdings, a missile systems design and manufacturing specialist. The company is well-positioned as a vital picks-and-shovels provider in… |
| Oct 12 2025 | 2025 Q3 | APH, BJ, CTAS, CWRD, EME, IT, MLM, ORLY, VRSK | AI, Automation, consumer, growth, industrials | - | AI investment remains a dominant but maturing theme, with rising skepticism about sustainability. The fund highlights strong performance in industrial automation and select consumer names… |
| Jul 15 2025 | 2025 Q2 | - | AI, Capital markets, Competitive Advantage, earnings momentum, growth | CRWD | The letter focuses on fundamental growth investing amid elevated volatility driven by tariffs, fiscal policy, and geopolitics. Emphasis is placed on companies with strong competitive… |
| Mar 31 2025 | 2025 Q1 | BJ, COR, CRWD, EME, IT, ORLY, TPG, VRSK, WCN | - | - | - |
| Sep 30 2024 | 2024 Q3 | APH, BJ, CHE, CTAS, ORLY, RNR, TER, VEEV, VRSK | - | - | - |
| Jun 30 2024 | 2024 Q2 | APH, CHE, COR, CRWD, LEGN, PANW, TER, VEEV, VRSK | - | - | - |
| Apr 15 2024 | 2024 Q1 | COR, CRWD, LEGN, LNG, ORLY, RNR, SNPS, VEEV, VRSK | - | - | - |
| Dec 31 2023 | 2023 Q4 | BC, CHE, CRWD, IDXX, IT, MLM, PANW, RNR, VRSK | - | - | - |
| Sep 30 2023 | 2023 Q3 | BC, CHE, CRWD, IDXX, LNG, MLM, ORLY, PANW, RNR, SNPS, VRSK, WCN | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
CybersecurityDemand for security increased following the recent NPM supply chain attack. JFrog's security add-on which secures open-source packages before organizations onboard them has seen significant pipeline growth, highlighting the critical need for software supply chain security. |
Cybersecurity Software Security Enterprise Technology | |
DefenseDefense positioning includes exposure to missiles, air defense and space through companies like Lockheed Martin, supported by large order backlogs providing strong long-term visibility amid heightened geopolitical tensions. |
Military Aerospace Geopolitical Security Infrastructure | |
Trade PolicyTariff headwinds are set to peak in 4Q25 with most tariffs having been paused and only starting to have economic effect at the end of 3Q25. US tariff collections have spiked to an annualized run rate of over US $300 billion which could effectively add up to 2.0 percent of GDP fiscal drag on the consumer. |
Inflation Growth Policy | |
| 2025 Q3 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
ConsumerThe consumer segment includes DJL Petfoods (pet food ingredients distributor) and TSDC Wholesale (food and grocery wholesale). DJL exemplifies RDCP 2.0 characteristics as an asset-light but infrastructure-critical business with long-standing customer relationships, exceptional retention rates, and exposure to growing pet ownership and premiumisation trends. These businesses benefit from structural advantages and recurring revenue streams. |
Pet Care Food Distribution Consumer Staples Wholesale Distribution | |
IndustrialIndustrial renewal provides abundant investment opportunities with the fund maintaining its largest overweight in the industrials sector. The portfolio includes aerospace and defense companies like Curtiss-Wright Corp and Carpenter Technology Corp, reflecting the ongoing industrial transformation and infrastructure build-out themes. |
Renewal Infrastructure Aerospace Defense Manufacturing | |
| 2025 Q2 |
Growth |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 15, 2025 | Fund Letters | Sonu Chawla | CRWD | CrowdStrike Holdings, Inc. | Information Technology | Systems Software | Bull | NASDAQ | cybersecurity, Endpoint, Identity, Reacceleration, Retention, Subscriptions | Login |
| Jan 21, 2026 | Fund Letters | Sonu Chawla | IBKR | Interactive Brokers Group, Inc. | Financials | Investment Banking & Brokerage | Bull | NASDAQ | Accounts, Brokerage, efficiency, scale, Trading | Login |
| Jan 21, 2026 | Fund Letters | Sonu Chawla | VEEV | Veeva Systems Inc. | Information Technology | Application Software | Bull | New York Stock Exchange | cloud, Competition, CRM, guidance, lifesciences | Login |
| Jan 21, 2026 | Fund Letters | Sonu Chawla | KRMN | Karman Holdings, Inc. | Industrials | Aerospace & Defense | Bull | New York Stock Exchange | backlog, Defense, Hypersonics, Missiles, Satellites | Login |
| Jan 21, 2026 | Fund Letters | Sonu Chawla | APH | Amphenol Corporation | Information Technology | Electronic Components | Bull | New York Stock Exchange | Aerospace, Capacity, Connectors, Datacom, Defense | Login |
| Jan 21, 2026 | Fund Letters | Sonu Chawla | HUBS | HubSpot, Inc. | Information Technology | Application Software | Bull | New York Stock Exchange | Adoption, ARR, CRM, monetization, Upmarket | Login |
| TICKER | COMMENTARY |
|---|---|
| APH | We trimmed Amphenol Corp. |
| COR | Cencora Inc., a pharmaceutical sourcing and distribution company, gained 8%. Fiscal fourth quarter earnings outpaced the consensus as strength in the U.S. offset a miss in their international business. Management also announced that it is considering strategic alternatives for the animal health and non-core parts of its PharmaLex business. |
| CRS | Carpenter Technology Corp. manufactures, fabricates, and distributes specialty metals. They are a key supplier to the aerospace, defense, medical, transportation, energy, and industrial markets. The combination of strong fiscal first quarter results and higher than expected forward guidance lifted the stock by 28%. |
| CYBR | The share price of access security solutions provider CyberArk Software fell -8%, despite reporting strong third quarter results. The stock is now closely linked to Palo Alto Networks following its stock and cash acquisition offer. A post-earnings pullback in Palo Alto Networks shares drove the decline in CyberArk. |
| EME | EMCOR Group Inc. provides electrical, mechanical, construction, and facilities services. Although the company's third-quarter revenues and earnings outpaced sell-side projections, the results were overshadowed by very strong performance from a key competitor during the same quarter, which led to a -6% pullback. |
| HUBS | HubSpot Inc., a cloud-based customer relationship management platform provider, dropped by -14%. The company delivered a beat-and-raise quarter, but elevated expectations following its September Analyst Day—where it disclosed 25% year-on-year growth in net new annualized recurring revenues for the first half of 2025—led investors to anticipate near-term revenue acceleration. This improvement is expected to materialize gradually rather than immediately. In our subsequent meeting with the company, their CEO expressed confidence in sustained core growth levers, including platform consolidation, multi-hub adoption, and strong upmarket momentum. |
| IBKR | Interactive Brokers saw weakness amid interest-rate uncertainty. |
| LNG | Cheniere Energy Inc. operates liquefied natural gas terminals in Louisiana and Texas. Management reported a slight miss on third-quarter profits due to volume mix, which caused its shares to slide by -17%. Full-year profit guidance was maintained. Share buybacks, however, surprised to the upside and that continued into the fourth quarter. |
| ORLY | O'Reilly Automotive Inc., a specialty retailer of aftermarket auto parts and accessories, lost -15%. Third quarter results featured better-than-expected revenues, same-store sales, and earnings; however operating expenses were higher. Do-it-for-me professional mechanic sales trends were positive while do-it-yourself (DIY) saw lower transaction levels. Management commented on tariff-driven price increases taking effect and affecting DIY demand. |
| PANW | A post-earnings pullback in Palo Alto Networks shares drove the decline in CyberArk. |
| PFGC | New to the portfolio this quarter was Performance Food Group Co., a food products distributor. Its customers include restaurants, businesses, schools, healthcare facilities, big-box retailers, theaters, and convenience stores. |
| TPG | Alternative asset manager TPG highlighted stronger-than-expected fundraising in the third quarter. The company continues to see healthy LP demand for its flagship Private Equity strategies while building momentum in cross-selling Credit strategies and showing early success in the Wealth channel. As a result, TPG's share price rose 12%. |
| VEEV | Veeva Systems Inc. provides industry cloud solutions to the global life sciences industry. The company delivered solid fiscal third-quarter results and issued guidance above the Street. Veeva management reiterated confidence in achieving its 2030 financial targets, maintaining that the current focus on competitive dynamics with Salesforce.com in the customer relationship management (CRM) market (20% of Veeva's total revenues) does not undermine its long-term trajectory. Despite these positives, the stock sold off by -25% on competitive concerns in the CRM market as Veeva projected lower Vault CRM customer versus its initial expectations. |
| VRSK | From a stock selection perspective, our positions in Verisk Analytics, Inc. (VRSK) and Watsco, Inc. (WSO) were the biggest laggards. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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