TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” second-quarter investor letter. A copy of the same can be downloaded here. The equity markets performed well in the second quarter, as long as one held only a small number of the biggest, fastest-growing U.S. stocks. Given the Magnificent Seven's superior performance, differences in growth and value among large caps were downplayed. There wasn't much style diversity between mid-caps, small caps, or outside the U.S. In the second quarter, the strategy returned -2.94% (gross) and -3.14% (net) while the Russell Midcap Growth Index returned -3.21%. In addition, please check the fund’s top five holdings to know its best picks in 2024.
TimesSquare Capital U.S. Mid Cap Growth Strategy highlighted stocks like Regal Rexnord Corporation (NYSE:RRX), in the second quarter 2024 investor letter. Regal Rexnord Corporation (NYSE:RRX) is a global manufacturer of industrial powertrain solutions, power transmission components, electric motors and electronic controls, air-moving products, and specialty electrical components and systems. The one-month return of Regal Rexnord Corporation (NYSE:RRX) was -5.67%, and its shares lost 2.88% of their value over the last 52 weeks. On September 12, 2024, Regal Rexnord Corporation (NYSE:RRX) stock closed at $148.85 per share with a market capitalization of $9.905 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Regal Rexnord Corporation (NYSE:RRX) in its Q2 2024 investor letter:
"Many of our Industrials positions provide necessary business-to-business operational services, highly technical components, automation & efficiency improvements, or essential infrastructure services. Here there was a -25% showing from Regal Rexnord Corporation (NYSE:RRX), which specializes in motion control systems, climate solutions, and similar mechanical components for a variety of end markets. There were ongoing pressures on its Power Efficiency and Automation & Motion Control segments that related to destocking in the automation or HVAC end markets. Meanwhile the soon-to-be-divested Industrial Powertrain operations showed better-than-expected results, and the net results were inline revenues and earnings, though lower guidance to adjust for the divestiture. Regal’s management expects a recovery in orders later in 2024 and in the meanwhile will reduce its debt levels, so we added to our position."
A technician inspecting a specialized industrial machinery in an engineering lab.