TPG (TPG) Fell Despite Reporting Distributable Earnings Above Expectations
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 TPG Inc. (NASDAQ:TPG). Based in Fort Worth, Texas, TPG Inc. (NASDAQ:TPG) is an alternative asset manager. The one-month return of TPG Inc. (NASDAQ:TPG) was 19.31%, and its shares gained 21.03% of their value over the last 52 weeks. On May 16, 2025, TPG Inc. (NASDAQ:TPG) stock closed at $51.91 per share with a market capitalization of $19.18 billion.
TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding TPG Inc. (NASDAQ:TPG) in its Q1 2025 investor letter:
"Offsetting gains was a -24% showing from private equity manager TPG Inc. (NASDAQ:TPG). While distributable earnings were above expectations, the underlying fee-related revenues were below. Some of that disconnect came from the consolidation of recently acquired Angelo Gordon in TPG’s numbers, which will be measured on an apples-to-apples basis going forward."
A successful businessman shaking hands with a client in a modern office building, celebrating a successful financial transaction.
TPG Inc. (NASDAQ:TPG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held TPG Inc. (NASDAQ:TPG) at the end of the fourth quarter which was 20 in the previous quarter. While we acknowledge the potential of TPG Inc. (NASDAQ:TPG) 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.
In another article, we covered TPG Inc. (NASDAQ:TPG) and shared the list of small cap financial stocks hedge funds are buying. Vulcan Value Partners established a position in TPG Inc. (NASDAQ:TPG) during Q1 2025. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.
Content Original Link:
" target="_blank">
