TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy returned 3.70% (gross) and 3.45% (net) in the fourth quarter compared to a 1.22% return for the Russell 2000 Growth Index. In 2025, the strategy returned 6.91% (gross) and 5.85% (net) compared to 13.01% for the index. Global equity markets ended the quarter on a positive note, with Europe leading, followed by Emerging Markets. In most markets, large caps outperformed small caps. The trade truce between the United States and China was prolonged for an additional year, but global geopolitical concerns, whether related to tariffs or not, persisted. Third-quarter GDP exceeded expectations, but consumer caution persists amid ongoing labor-market softening, influencing the Fed’s decision on interest-rate cuts. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, TimesSquare Capital U.S. Small Cap Growth Strategy highlighted Boot Barn Holdings, Inc. (NYSE:BOOT). Boot Barn Holdings, Inc. (NYSE:BOOT) is the largest retail chain that focuses on selling western and work-related footwear, apparel, and accessories. On April 1, 2026, Boot Barn Holdings, Inc. (NYSE:BOOT) closed at $143.51 per share. One-month return of Boot Barn Holdings, Inc. (NYSE:BOOT) was -26.23%, and its shares gained 46.80% over the past 52 weeks. Boot Barn Holdings, Inc. (NYSE:BOOT) has a market capitalization of $4.38 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Boot Barn Holdings, Inc. (NYSE:BOOT) in its fourth quarter 2025 investor letter:
“Our preferences in the Consumer-oriented sectors lean toward value-oriented or specialty retailers, franchise models, premium brands, or support services for other consumer companies. Kicking off the contributors this quarter was Boot Barn Holdings, Inc. (NYSE:BOOT), the leader in a highly fragmented retail segment focused on western and work footwear, apparel, and accessories. Early in the quarter, Boot Barn’s revenues and earnings handily exceeded estimates, with greater transaction volumes and new store openings. Boot Barn increased its guidance for the next fiscal year—including the number of new stores—and expects no disruption from planned price increases in mid-2026. Though its shares gained 6%, the underlying volatility was meaningful as sentiment began to shift. We grew concerned that the next report from Boot might include slower growth and cautious near-term guidance, so we trimmed our position, ultimately exiting entirely in early January.”
