Overview
- TimesSquare disclosed in its Q1 2026 investor letter that the U.S. Mid Cap Growth Strategy fell 7.72% net versus a 6.35% decline for the Russell Midcap Growth Index, a result published in late June.
- The letter attributes performance to geopolitical action involving Iran, higher oil and temporary tariffs that disrupted supply chains, which led investors to move into perceived safer assets and raised sector dispersion.
- At the company level the manager liquidated Pinterest after retailers pulled advertising tied to tariffs and sold HubSpot over concerns that AI and the firm’s seat‑based pricing model would damage future revenue.
- TimesSquare added to DoorDash on expectations of second‑half margin improvement and increased its Insmed stake after an earlier‑than‑expected drug launch, while winners included data‑center and aerospace suppliers such as Regal Rexnord, EMCOR and Carpenter Technology.
- The firm says it will keep focusing on disciplined management teams with durable advantages, a stance that could favor ‘pick‑and‑shovel’ suppliers to AI and infrastructure builds and influence where active managers allocate capital next.