Victory Capital Holdings (VCTR) Advanced 11% in Q2

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 Victory Capital Holdings, Inc. (NASDAQ:VCTR). Victory Capital Holdings, Inc. (NASDAQ:VCTR) is an asset management company. The one-month return of Victory Capital Holdings, Inc. (NASDAQ:VCTR) was 0.79%, and its shares gained 36.07% of their value over the last 52 weeks. On September 11, 2025, Victory Capital Holdings, Inc. (NASDAQ:VCTR) stock closed at $70.70 per share, with a market capitalization of $4.722 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Victory Capital Holdings, Inc. (NASDAQ:VCTR) in its second quarter 2025 investor letter:

"In the Financials sector we tend to avoid banks that face credit deterioration or rising deposit costs, preferring either asset managers or specialized insurance companies. Victory Capital Holdings, Inc. (NASDAQ:VCTR), an asset management firm, gained 11%. Its first quarter earnings were in line with sell-side projections as expense controls served to counter lower management fees."

Victory Capital Holdings, Inc. (NASDAQ:VCTR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Victory Capital Holdings, Inc. (NASDAQ:VCTR) at the end of the second quarter, which was 16 in the previous quarter. Victory Capital Holdings, Inc.'s (NASDAQ:VCTR) second quarter revenue increased 60% from first quarter to $351.2 million. While we acknowledge the potential of Victory Capital Holdings, Inc. (NASDAQ:VCTR) 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.

In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.