TimesSquare Capital Management released its third-quarter 2025 investor letter for its “U.S. Focus Growth Strategy,” showing positive returns for all major asset classes 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 their investor letter, TimesSquare Capital highlighted CrowdStrike Holdings, Inc. (NASDAQ:CRWD), a global cybersecurity solutions provider. The one-month return of CRWD was -4.72%, with shares gaining 30.03% over the last 52 weeks. On December 12, 2025, CRWD stock closed at $504.78 per share, with a market capitalization of $127.254 billion.

TimesSquare Capital’s U.S. Focus Growth Strategy stated a preference for critical system providers and specialized component designers in the Information Technology sector, including companies that improve productivity or efficiency for clients. They exited their position in CrowdStrike Holdings, Inc. (NASDAQ:CRWD) due to market cap considerations, with the share price pulling back by -16% while held in the quarter.

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is not among the 30 most popular stocks among hedge funds, with 66 hedge fund portfolios holding CRWD at the end of the third quarter of 2026. In that quarter, CRWD’s subscription revenue grew 21% year-over-year to reach $1.17 billion. While acknowledging CRWD’s potential, some AI stocks offer greater upside potential and less downside risk.

Read more at Yahoo Finance: TimesSquare U.S. Focus Growth Strategy Sold CrowdStrike Holdings (CRWD) Due to Market Cap Considerations