TimesSquare Capital Management, an equity investment management company, recently released its “U.S. Small Cap Growth Strategy” third-quarter 2025 investor letter. The fund reported a return of 2.26% (gross) and 2.01% (net) during the quarter, in contrast to the Russell 2000 Growth Index’s 12.19% return. While all asset classes outside of fixed income in the U.S. posted positive returns, the fund’s top five holdings offer insight into its best picks for 2025.
In its third-quarter 2025 investor letter, TimesSquare Capital U.S. Small Cap Growth Strategy highlighted Pursuit Attractions and Hospitality, Inc. (NYSE:PRSU) as one of its key stock picks. Pursuit Attractions and Hospitality is an attraction and hospitality company that saw a one-month return of 2.29% and a 16.30% decline over the last 52 weeks. As of January 5, 2026, Pursuit Attractions and Hospitality’s stock closed at $34.10 per share, with a market capitalization of $964.459 million.
The investor letter provided insights into TimesSquare Capital’s strategy regarding Pursuit Attractions and Hospitality, Inc. (NYSE:PRSU). The company is an owner-operator of select lodgings and sightseeing locations at high-demand destinations. The fund added to its position in Pursuit early in the quarter following the company’s acquisition of a new property in Costa Rica, a counter-cyclical market with strategic potential. Pursuit exceeded revenue and earnings expectations, prompting a 25% increase in its shares.
While Pursuit Attractions and Hospitality, Inc. (NYSE:PRSU) is not among the 30 Most Popular Stocks Among Hedge Funds, it reported revenue of $241 million in the third quarter of 2025, up approximately 32% year-over-year. TimesSquare Capital Management acknowledges the investment potential of Pursuit Attractions and Hospitality, Inc. (NYSE:PRSU) but believes that certain AI stocks offer greater upside potential with less downside risk.
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Overall, TimesSquare Capital Management’s U.S. Small Cap Growth Strategy for the third quarter of 2025 showcases a strategic approach to identifying promising investment opportunities in the small-cap growth sector. With a focus on companies like Pursuit Attractions and Hospitality, Inc. (NYSE:PRSU), the fund remains committed to delivering value for its investors through careful analysis and strategic decision-making.
