Varied Growth Drivers Lifted Construction Partners (ROAD) 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 Construction Partners, Inc. (NASDAQ:ROAD). Construction Partners, Inc. (NASDAQ:ROAD) is a civil infrastructure company that constructs and maintains roadways. The one-month return of Construction Partners, Inc. (NASDAQ:ROAD) was 10.91%, and its shares gained 97.36% of their value over the last 52 weeks. On September 11, 2025, Construction Partners, Inc. (NASDAQ:ROAD) stock closed at $124.91 per share, with a market capitalization of $7.006 billion.

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

Many of our Industrial positions provide necessary business-to-business operational services, highly technical components, equipment enabling automation & efficiency improvements, or essential infrastructure services. Construction Partners Inc. is a civil infrastructure company that builds and maintains roadways and highways. Solid first quarter results led to a 48% gain. Underlying fundamentals remain strong across their end markets, and tariffs are not having any impact. Construction Partners’ new business backlog hit record levels.

Construction Partners, Inc. (NASDAQ:ROAD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Construction Partners, Inc. (NASDAQ:ROAD) at the end of the second quarter, which was 15 in the previous quarter. Construction Partners, Inc.’s (NASDAQ:ROAD) revenue was $779.3 million in fiscal Q3 2025, marking an increase of 51% compared fiscal Q3 2024. While we acknowledge the potential of Construction Partners, Inc. (NASDAQ:ROAD) 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 Construction Partners, Inc. (NASDAQ:ROAD) and shared Conestoga Capital Advisors' 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.