Here's Why Saia (SAIA) Declined 22% in Q2

TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned 13.13% (gross) and 12.91% (net), compared to the Russell Midcap® Growth Index’s 18.20% return. Equities recorded 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 U.S. Mid Cap Growth Strategy highlighted stocks such as Saia, Inc. (NASDAQ:SAIA). Saia, Inc. (NASDAQ:SAIA) is a North America-based transportation company. The one-month return of Saia, Inc. (NASDAQ:SAIA) was 0.75%, and its shares lost 32.06% of their value over the last 52 weeks. On September 29, 2025, Saia, Inc. (NASDAQ:SAIA) stock closed at $294.65 per share, with a market capitalization of $7.848 billion.

TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Saia, Inc. (NASDAQ:SAIA) in its second quarter 2025 investor letter:

"The less-than-truckload transportation company Saia, Inc. (NASDAQ:SAIA) reported disappointing revenues and earnings. There were increased volumes in many of the recently acquired markets that did not have as attractive profitability as Saia’s legacy markets, which had flat growth. Management was also concerned about macroeconomic uncertainty affecting future volumes. Its shares declined by -22% and we are reconsidering Saia’s place in the strategy."

Saia, Inc. (NASDAQ:SAIA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Saia, Inc. (NASDAQ:SAIA) at the end of the second quarter, which was 35 in the previous quarter. In the second quarter of 2025, Saia, Inc. (NASDAQ:SAIA) announced revenue of $817 million, marking a 0.7% decrease compared to the same quarter last year. While we acknowledge the potential of Saia, Inc. (NASDAQ:SAIA) 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 Saia, Inc. (NASDAQ:SAIA) and shared the list of best freight stocks to invest in. 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.