TimesSquare U.S. Focus Growth Strategy's New Addition: Interactive Brokers Group (IBKR)

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 Interactive Brokers Group, Inc. (NASDAQ:IBKR). Founded in 1977, Interactive Brokers Group, Inc. (NASDAQ:IBKR) is an automated electronic broker. The one-month return of Interactive Brokers Group, Inc. (NASDAQ:IBKR) was 1.17%, and its shares gained 42.40% of their value over the last 52 weeks. On December 12, 2025, Interactive Brokers Group, Inc. (NASDAQ:IBKR) stock closed at $64.15 per share, with a market capitalization of $109.051 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Interactive Brokers Group, Inc. (NASDAQ:IBKR) in its third quarter 2025 investor letter:

"In the Financials sector we tend to avoid banks that face credit deterioration or rising deposit costs, preferring either asset managers, specialized insurance companies, or financial technology providers. New to the sector this quarter was Interactive Brokers Group, Inc. (NASDAQ:IBKR), a leading global electronic broker. They offer low-cost execution, clearing, and settlement for retail and institutional customers."

Interactive Brokers Group, Inc. (NASDAQ:IBKR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 68 hedge fund portfolios held Interactive Brokers Group, Inc. (NASDAQ:IBKR) at the end of the third quarter, up from 71 in the previous quarter. In the third quarter of 2025, Interactive Brokers Group, Inc.’s (NASDAQ:IBKR) commission revenue rose 23% year-over-year to $537 million. While we acknowledge the potential of Interactive Brokers Group, Inc. (NASDAQ:IBKR) 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 Interactive Brokers Group, Inc. (NASDAQ:IBKR) and shared Baron Focused Growth Fund's views on the company. 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.