TimesSquare Mid Cap Growth Strategy Exited HubSpot (HUBS) Due to AI Disruption Concerns

2 hours ago 1

Soumya Eswaran

Wed, July 1, 2026 astatine 8:03 AM CDT 3 min read

TimesSquare Capital Management, an equity concern absorption company, released its "U.S. Mid Cap Growth Strategy" first-quarter 2026 capitalist letter. A transcript of the missive tin be downloaded here. The Strategy fell 7.72% (net) successful the 4th compared to -6.35% for the Russell Midcap Growth Index. In the archetypal quarter, markets navigated geopolitical tensions and economical resilience alongside impermanent planetary tariffs. High lipid prices and proviso concatenation disruptions followed U.S. and Israeli engagement successful Iran, prompting a displacement to safer assets and a reevaluation of proviso chains and vigor dependencies. Central banks maintained dependable policies contempt energy-driven inflation. In this environment, the Strategy remains focused connected disciplined absorption teams with durable competitory advantages. Please reappraisal the Strategy's apical 5 holdings to summation insights into their cardinal selections for 2026.

In its first-quarter 2026 capitalist letter, TimesSquare Capital U.S. Mid Cap Growth Strategy highlighted HubSpot, Inc. (NYSE:HUBS). HubSpot, Inc. (NYSE:HUBS) is simply a bundle institution that offers a cloud-based lawsuit narration absorption (CRM) level for businesses. On June 30, 2026, HubSpot, Inc. (NYSE:HUBS) banal closed astatine $182.51 per share. One-month instrumentality of HubSpot, Inc. (NYSE:HUBS) was -17.95%, and its shares mislaid 66.57% implicit the past 52 weeks. HubSpot, Inc. (NYSE:HUBS) has a marketplace capitalization of $9.34 billion.

TimesSquare Capital U.S. Mid Cap Growth Strategy stated the pursuing regarding HubSpot, Inc. (NYSE:HUBS) successful its Q1 2026 capitalist letter:

"Among the wide assortment of Information Technology companies, we similar captious systems providers, specialized constituent designers, systems that amended lawsuit productivity oregon efficiency, and others that are increasing their stock of firm IT budgets. HubSpot, Inc. (NYSE:HUBS) offers a cloud-based lawsuit narration absorption platform. We exited the presumption owed to the operation of imaginable AI disruption and the seat-based model's imaginable challenges. The banal tumbled -43% earlier it was sold."

Analyst Explains Catalysts for 'Significant' Revenue Upside for HubSpot (HUBS)

HubSpot, Inc. (NYSE:HUBS) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 46 hedge money portfolios held HubSpot, Inc. (NYSE:HUBS) astatine the extremity of the archetypal quarter, compared to 56 successful the erstwhile quarter. While we admit the imaginable of HubSpot, Inc. (NYSE:HUBS) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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