TimesSqure Capital U.S. Small Cap Growth Strategy’s New Addition: Braze (BRZE)

Mon, Sep 15, 2025, 7:04 AM 2 min read

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned 11.28% (gross) and 11.02% (net), compared to the Russell 2000 Growth Index by 11.97%. Equities posted 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 Small Cap Growth Strategy highlighted stocks such as Braze, Inc. (NASDAQ:BRZE). Braze, Inc. (NASDAQ:BRZE) is a leading customer engagement platform that offers interactions between consumers and brands. The one-month return of Braze, Inc. (NASDAQ:BRZE) was 13.52%, and its shares lost 14.13% of their value over the last 52 weeks. On September 12, 2025, Braze, Inc. (NASDAQ:BRZE) stock closed at $30.14 per share, with a market capitalization of $3.354 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Braze, Inc. (NASDAQ:BRZE) in its second 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. New to the sector this quarter is Braze, Inc. (NASDAQ:BRZE), a customer relationship management platform for mobile applications. Its application combines messaging, audience segmentation, analytics, and user support in a single integrated solution."

Braze, Inc. (NASDAQ:BRZE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Braze, Inc. (NASDAQ:BRZE) at the end of the second quarter, which was 31 in the previous quarter. In the second quarter of 2025, Braze, Inc. (NASDAQ:BRZE) generated $180 million of revenue, up 24% year-over-year and 11% from the prior quarter. While we acknowledge the potential of Braze, Inc. (NASDAQ:BRZE) 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 Braze, Inc. (NASDAQ:BRZE) and shared the list of stocks leaving Wall Street in the dust. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.