TimesSquare Capital Management released its third-quarter 2025 investor letter, showing a 2.01% net return compared to the Russell 2000 Growth Index’s 12.19% return. All asset classes, except fixed income outside the U.S., posted positive returns. Check the fund’s top five holdings for 2025 picks.

In the letter, TimesSquare Capital highlighted SiTime Corporation (NASDAQ:SITM), a company designing silicon timing systems. The stock had a one-month return of -9.13% and gained 44.21% over the last 52 weeks. On January 5, 2026, SiTime’s stock closed at $333.03 per share with a market cap of $8.692 billion.

TimesSquare Capital’s letter discussed SiTime Corporation, noting its rebound from weakness and new design wins. The company is the dominant market leader for MEMS timing chips, displacing quartz-based systems in high-performance processors. The fund initiated the position in June and continued buying in July, trimming the weight as the price increased by 39%.

SiTime Corporation is not among the 30 Most Popular Stocks Among Hedge Funds but had 35 hedge fund portfolios holding it in the third quarter, delivering record revenue of $83.6 million, a 45% year-over-year increase. While acknowledging its potential, some AI stocks may offer greater upside potential and less downside risk.

Read more at Yahoo Finance: Here’s What Backed TimesSquare Capital U.S. Small Cap Growth Strategy’s Addition of SiTime Corporation (SITM)