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 stocks like Stevanato Group S.p.A. (NYSE:STVN). Stevanato Group S.p.A. (NYSE:STVN) designs and distributes products and processes to offer integrated solutions for the biopharma and healthcare industries. On March 31, 2026, Stevanato Group S.p.A. (NYSE:STVN) closed at $13.75 per share. One-month return of Stevanato Group S.p.A. (NYSE:STVN) was -20.26%, and its shares lost 33.45% over the past 52 weeks. Stevanato Group S.p.A. (NYSE:STVN) has a market capitalization of about $3.81 billion.

TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Stevanato Group S.p.A. (NYSE:STVN) in its fourth quarter 2025 investor letter:

"Pulling back by -22% was Stevanato Group S.p.A. (NYSE:STVN), which manufactures glass packaging for syringes, autoinjectors, and other pharmaceutical needs. Recent revenues and earnings each exceeded expectations, though management was conservative and merely reaffirmed its guidance for the balance of its fiscal year. There may have been some advanced purchasing from customers, though Stevanato’s core business grew well, and we added to our position on the weakness."

Stevanato Group S.p.A. (NYSE:STVN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 15 hedge fund portfolios held Stevanato Group S.p.A. (NYSE:STVN) at the end of the fourth quarter, up from 13 in the previous quarter. In Q4 2025, Stevanato Group S.p.A.’s (NYSE:STVN) revenue grew 7% at constant currency and 5% on a reported basis to $346.5 million. While we acknowledge the potential of Stevanato Group S.p.A. (NYSE:STVN) 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 Stevanato Group S.p.A. (NYSE:STVN) and shared Artisan Small Cap Fund's views on the company. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. This article is originally published at Insider Monkey.