IRhythm Technologies (IRTC) Surged on Continued Momentum in Mobile Cardiac Telemetry

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 IRhythm Technologies, Inc. (NASDAQ:IRTC). IRhythm Technologies, Inc. (NASDAQ:IRTC) is a digital healthcare company that designs and develops device-based technology to provide ambulatory cardiac monitoring services. The one-month return of IRhythm Technologies, Inc. (NASDAQ:IRTC) was 12.74%, and its shares gained 136.30% of their value over the last 52 weeks. On September 11, 2025, IRhythm Technologies, Inc. (NASDAQ:IRTC) stock closed at $181.03 per share, with a market capitalization of $5.816 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding IRhythm Technologies, Inc. (NASDAQ:IRTC) 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. New to the sector this quarter was cardiac monitoring company IRhythm Technologies, Inc. (NASDAQ:IRTC). They subsequently reported results that exceeded the consensus and that lifted the stock by 52%. Strength in the quarter came from continued momentum in mobile cardiac telemetry."

IRhythm Technologies, Inc. (NASDAQ:IRTC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held IRhythm Technologies, Inc. (NASDAQ:IRTC) at the end of the second quarter, which was 31 in the previous quarter. In the second quarter of 2025, IRhythm Technologies, Inc. (NASDAQ:IRTC) reported revenue of $186.7 million, representing an increase of more than 26% year-over-year. While we acknowledge the potential of IRhythm Technologies, Inc. (NASDAQ:IRTC) 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 IRhythm Technologies, Inc. (NASDAQ:IRTC) and shared Artisan Small Cap Fund's views on the company. 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.