Insmed (INSM) Reported Impressive Results from the Phase 2 Trial Of Its Inhalation Powder

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 Insmed Incorporated (NASDAQ:INSM). Insmed Incorporated (NASDAQ:INSM) is a biopharmaceutical company that develops therapeutic products for patients with serious and rare diseases. The one-month return of Insmed Incorporated (NASDAQ:INSM) was 14.12%, and its shares gained 97.25% of their value over the last 52 weeks. On September 11, 2025, Insmed Incorporated (NASDAQ:INSM) stock closed at $145.79 per share, with a market capitalization of $30.815 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Insmed Incorporated (NASDAQ:INSM) in its second quarter 2025 investor letter:

"Our preferences among Health Care stocks are those companies providing novel therapies for unmet needs that deserve premium pricing, or specialized service providers. Insmed Incorporated (NASDAQ:INSM), a biopharmaceutical company engaged in developing therapies for patients with rare diseases, jumped 31%. During the quarter, the company reported impressive safety and efficacy data from its Phase 2 trial of Treprostinil Palmitil inhalation powder for treating arterial hypertension."

Insmed Incorporated (NASDAQ:INSM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 82 hedge fund portfolios held Insmed Incorporated (NASDAQ:INSM) at the end of the second quarter, which was 64 in the previous quarter. While we acknowledge the potential of Insmed Incorporated (NASDAQ:INSM) 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 another article, we covered Insmed Incorporated (NASDAQ:INSM) and shared the list of hot large cap stocks to buy according to hedge funds. Insmed Incorporated (NASDAQ:INSM) contributed to Baron Health Care Fund's performance in the second quarter. 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.