Soumya Eswaran
3 min read
In This Article:
TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The broad-based downturn in US equities underperformed overseas markets in the first quarter. In this negative environment, the strategy outperformed the index in the first quarter. The strategy returned 2.42% (gross) and 2.20% (net) compared to a -7.12% return for the Russell Midcap Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, TimesSquare Capital U.S. Focus Growth Strategy highlighted stocks such as Waste Connections, Inc. (NYSE:WCN). Waste Connections, Inc. (NYSE:WCN) offers non-hazardous waste collection, transfer, disposal, and resource recovery services. The one-month return of Waste Connections, Inc. (NYSE:WCN) was -2.76%, and its shares gained 14.52% of their value over the last 52 weeks. On May 16, 2025, Waste Connections, Inc. (NYSE:WCN) stock closed at $191.92 per share with a market capitalization of $49.591 billion.
TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Waste Connections, Inc. (NYSE:WCN) in its Q1 2025 investor letter:
"Many of our Industrials positions provide necessary business-to-business operational services, highly technical components, equipment enabling automation & efficiency improvements, or essential infrastructure services. Case in point was Waste Connections, Inc. (NYSE:WCN), which collects, transfers, recycles, and disposes of waste for municipalities and businesses in the U.S. and Canada. Revenues exceeded expectations though earnings fell shy of them given the impacts of foreign exchange and lower prices for recycled cardboard. The resilience of Waste Connections’ business within the current economic landscape contributed to a 14% increase in its stock price."
A fleet of waste management trucks driving through a city at sunrise.
Waste Connections, Inc. (NYSE:WCN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held Waste Connections, Inc. (NYSE:WCN) at the end of the fourth quarter, compared to 48 in the third quarter. In the first quarter of 2025, Waste Connections, Inc.’s (NYSE:WCN) revenue increased 7.5% year-over-year to $2.228 billion. While we acknowledge the potential of Waste Connections, Inc. (NYSE:WCN) 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 undervalued AI stock set for massive gains.
