TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned 11.28% (gross) and 11.02% (net), compared to the Russell 2000 Growth Index by 11.97%. Equities posted double-digit returns in the second quarter as global economic activity measures lifted. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second-quarter 2025 investor letter, TimesSquare Capital Small Cap Growth Strategy highlighted stocks such as BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ). BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) operates warehouse clubs that provide groceries, general merchandise, gasoline and other ancillary services, coupon books, and promotions. The one-month return of BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) was -5.27%, and its shares gained 20.67% of their value over the last 52 weeks. On September 10, 2025, BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) stock closed at $97.44 per share, with a market capitalization of $12.838 billion.
TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) in its second quarter 2025 investor letter:
“Our preferences in the Consumer-oriented sectors lean toward value-oriented or specialty retailers, franchise models, or premium brands. BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) operates membership warehouse clubs. First quarter profits and earnings outpaced Street estimates. Strong momentum in consumables offset a slight decline in seasonal big-ticket categories. Investors appear to have been disappointed by management’s decision to maintain full-year guidance, though we view this as a conservative approach. We added to the BJ’s position on its -6% pullback.”
BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) at the end of the second quarter, which was 43 in the previous quarter. BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) reported net sales of approximately $5.3 billion in Q2 2025, growing 3.4% over the prior year. While we acknowledge the potential of BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) 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.
