TimesSquare U.S. Focus Growth Strategy Sold CrowdStrike Holdings (CRWD) Due to Market Cap Considerations

TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, all the major asset classes posted positive returns except fixed income assets outside the US. The strategy returned 4.00% (gross) and 3.78% (net) compared to a 2.78% return for the Russell Midcap Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, TimesSquare Capital U.S. Focus Growth Strategy highlighted stocks such as CrowdStrike Holdings, Inc. (NASDAQ:CRWD). CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a global cybersecurity solutions provider. The one-month return of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) was -4.72%, and its shares gained 30.03% of their value over the last 52 weeks. On December 12, 2025, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) stock closed at $504.78 per share, with a market capitalization of $127.254 billion.

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

"Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, systems that improve productivity or efficiency for their clients, and others that are growing their shares of corporate IT budgets. CrowdStrike Holdings, Inc. (NASDAQ:CRWD) provides cybersecurity products and services to prevent breaches. We exited the position on market cap considerations. Its share price pulled back by -16% while held in the quarter."

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held CrowdStrike Holdings, Inc. (NASDAQ:CRWD) at the end of the third quarter, the same as in the previous quarter. In the third quarter of 2026, CrowdStrike Holdings, Inc.'s (NASDAQ:CRWD) subscription revenue grew 21% year-over-year to reach $1.17 billion. While we acknowledge the potential of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) 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 CrowdStrike Holdings, Inc. (NASDAQ:CRWD) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q3 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.