Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 13.7% | -3.8% | 13.9% |
| 2025 |
|---|
| 13.9% |
| 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 been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
CybersecurityCybersecurity companies are using AI in core algorithms to better identify anomalies and block malicious traffic. CrowdStrike is seeing reacceleration in growth with new Falcon Flex offering, while Netskope continues gaining SASE market share with strong competitive win rates. |
Security AI Detection Enterprise Cloud Protection | |
DefenseThe team initiated a position in Curtiss-Wright, believing the company is entering a period where multiple near-term growth drivers are converging, including rising defense budgets, commercial aerospace production ramps, nuclear power plant life extensions and new builds, and submarine production. |
Defense Budgets Aerospace Nuclear Submarines | |
Trade PolicyRecent tariff policies continued to negatively impact U.S. consumers and companies throughout the year. However, international companies have been finding new trade arrangements and growth opportunities, benefiting from shifts in global trade patterns as the new U.S. administration alters terms of international cooperation. |
Tariffs International Growth Cooperation Impact | |
| 2025 Q3 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
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 real estate benefits from multi-year demand drivers including e-commerce growth, last mile infrastructure needs, onshoring trends, and shift from just-in-time to just-in-case inventory management. AI's physical manifestation through robotics and automation will require more industrial facilities. Fund owns Prologis, EastGroup Properties, and Terreno Realty. |
E-commerce Last Mile Onshoring Inventory Robotics | |
| 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. was one of the top five winners for the quarter. |
| 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 is a critical contractor enabling multi-year investment cycles across data centers, semiconductor fabrication, electrification, and broader infrastructure modernization. Its decentralized, cash-generative model, recurring service base, and exposure to structural growth drivers create a profile we view as more durable than a typical cyclical contractor framework. |
| 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 | Concerns about liquefied natural gas (LNG) supply/demand fundamentals weighed on the stock, although the company is highly contracted, which limits exposure to commodity prices and other risks. |
| ORLY | Weakest performers included O'Reilly Automotive (-15%) |
| 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 | The underperformance came from: Texas Pacific Land Corp |
| 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 % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||