TimesSquare Capital Management released its U.S. Small Cap Growth Strategy third-quarter 2025 investor letter, reporting a return of 2.26% (gross) and 2.01% (net) compared to the Russell 2000 Growth Index’s 12.19% return. All asset classes except fixed income outside the U.S. saw positive returns during the quarter. Check the fund’s top five holdings for 2025.

In the third-quarter 2025 investor letter, TimesSquare Capital highlighted ACV Auctions Inc. (NYSE:ACVA), a digital marketplace for wholesale vehicle auctions. ACVA had a one-month return of 6.69% and shares lost 57.59% over the last 52 weeks. On January 5, 2026, ACVA stock closed at $8.61 per share, with a market cap of $1.562 billion.

TimesSquare Capital U.S. Small Cap Growth Strategy noted ACV Auctions Inc. (NYSE:ACVA) pulled back by -39%, attributing it to lower-than-expected revenues and earnings due to macroeconomic concerns. Management reduced guidance for the rest of 2025. The fund is reassessing ACVA’s role in its strategy.

ACV Auctions Inc. (NYSE:ACVA) is not among the 30 most popular stocks among hedge funds, with 39 portfolios holding it at the end of Q3 2025. ACVA reported $200 million in revenue in Q3, an increase of 16% year-over-year. While ACVA has investment potential, certain AI stocks may offer higher upside with less risk.

In another article, a bullish thesis was shared on ACV Auctions Inc. (NYSE:ACVA). For more investor letters from hedge funds and leading investors, visit the hedge fund investor letters Q3 2025 page.

Read more at Yahoo Finance: TimesSquare Capital U.S. Small Cap Growth Strategy’s Stand on ACV Auctions (ACVA)