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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 GFL Environmental Inc. (NYSE:GFL), in the second quarter 2024 investor letter. GFL Environmental Inc. (NYSE:GFL) offers non-hazardous solid waste management and environmental services. The one-month return of GFL Environmental Inc. (NYSE:GFL) was -2.21%, and its shares gained 19.25% of their value over the last 52 weeks. On September 12, 2024, GFL Environmental Inc. (NYSE:GFL) stock closed at $40.26 per share with a market capitalization of $15.159 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding GFL Environmental Inc. (NYSE:GFL) 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. Shares in GFL Environmental Inc. (NYSE:GFL) picked up by 13%. Late in the quarter, an activist investor renewed its call for a strategic review of all options, including a private sale for this handler of non-hazardous waste, soil remediation, and other environmental services. In our discussions with GFL’s management, we believe such a transaction is unrealistic, though we did trim our position following that price run."
An excavator at a landfill site operating amidst a pile of solid waste.
GFL Environmental Inc. (NYSE:GFL) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held GFL Environmental Inc. (NYSE:GFL) at the end of the second quarter which was 31 in the previous quarter. GFL Environmental Inc. (NYSE:GFL) generated $2.06 billion in revenues in the second quarter, up 11.1% year-over-year, excluding the impact of the solid waste divestitures. While we acknowledge the potential of GFL Environmental Inc. (NYSE:GFL) 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.