TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, all the major asset classes posted positive returns except fixed income assets outside the US. The strategy returned 4.00% (gross) and 3.78% (net) compared to a 2.78% 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 third-quarter 2025 investor letter, TimesSquare Capital U.S. Focus Growth Strategy highlighted stocks such as HubSpot, Inc. (NYSE:HUBS). HubSpot, Inc. (NYSE:HUBS) offers a cloud-based customer relationship management (CRM) platform for businesses. The one-month return for HubSpot, Inc. (NYSE:HUBS) was 1.85%, and its shares lost 49.67% over the last 52 weeks. On December 12, 2025, HubSpot, Inc. (NYSE:HUBS) stock closed at $375.94 per share, with a market capitalization of $19.809 billion.
TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding HubSpot, Inc. (NYSE:HUBS) in its third quarter 2025 investor letter:
“Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, systems that improve productivity or efficiency for their clients, and others that are growing their shares of corporate IT budgets. HubSpot, Inc. (NYSE:HUBS) offers a cloud-based customer relationship management platform. Second quarter results exceeded the consensus. Growth was driven on its platform by AI adoption, seat growth, and more multi-hub deals. Despite the solid results, management maintained forward guidance excluding tailwinds from currency translation which caused a -16% slide in their shares. In our view, management is erring on the side of conservatism.”
HubSpot, Inc. (NYSE:HUBS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held HubSpot, Inc. (NYSE:HUBS) at the end of the third quarter, which was 56 in the previous quarter. In Q3 2025, HubSpot, Inc.’s (NYSE:HUBS) revenue grew 18.4% year-over-year in constant currency, reaching $810 million. While we acknowledge the potential of HubSpot, Inc. (NYSE:HUBS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
