Should You Hold Victory Capital Holdings (VCTR)?

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter the fund returned 5.77% (net), compared to a 7.58% return for the Russell 2000 Growth Index. Despite a decline in many equity markets in January, they rebounded over the following two months, resulting in a robust 2024 first quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.

TimesSquare Capital U.S. Small Cap Growth Strategy highlighted stocks like Victory Capital Holdings, Inc. (NASDAQ:VCTR), in the first quarter 2024 investor letter. Victory Capital Holdings, Inc. (NASDAQ:VCTR) is an asset management company. The one-month return of Victory Capital Holdings, Inc. (NASDAQ:VCTR) was -7.79%, and its shares gained 52.93% of their value over the last 52 weeks. On June 18, 2024, Victory Capital Holdings, Inc. (NASDAQ:VCTR) stock closed at $48.51 per share with a market capitalization of $3.139 billion.

TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Victory Capital Holdings, Inc. (NASDAQ:VCTR) in its first quarter 2024 investor letter:

"In the Financials sector we tend to avoid banks that face credit deterioration or rising deposit costs, preferring asset managers, niche insurance companies, and niche fintech providers. Victory Capital Holdings, Inc. (NASDAQ:VCTR) is a diversified firm that combines boutique investment managers with the benefits of a centralized operating and distribution platform. The combination of inline fourth quarter earnings and higher profits lifted their stock price by 24%. Based on management’s comments, it seems likely there will be an acquisition at some point during 2024 as they look to enhance their product offerings."

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Victory Capital Holdings, Inc. (NASDAQ:VCTR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Victory Capital Holdings, Inc. (NASDAQ:VCTR) at the end of the first quarter which was 22 in the previous quarter. During the quarter, Victory Capital Holdings, Inc. (NASDAQ:VCTR) experienced an 8% growth in AUM from the previous quarter, and revenue increased by $10.1 million to $215.9 million. While we acknowledge the potential of Victory Capital Holdings, Inc. (NASDAQ:VCTR) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In addition, please check out our hedge fund investor letters Q1 2024 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.