TimesSquare Capital FOCUS Growth Strategy Trimmed BJ’s Wholesale Club Holdings (BJ) on Price Appreciation

Soumya Eswaran

Mon, May 19, 2025, 8:48 AM 3 min read

TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The broad-based downturn in US equities underperformed overseas markets in the first quarter. In this negative environment, the strategy outperformed the index in the first quarter. The strategy returned 2.42% (gross) and 2.20% (net) compared to a -7.12% return for the Russell Midcap Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, TimesSquare Capital U.S. Focus Growth Strategy highlighted stocks such as BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ). BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) operates warehouse clubs that provide groceries, general merchandise, gasoline and other ancillary services, coupon books, and promotions. The one-month return of BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) was -1.75%, and its shares gained 45.91% of their value over the last 52 weeks. On May 16, 2025, BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) stock closed at $116.38 per share with a market capitalization of $15.368 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) in its Q1 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. Warehouse club operator BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) bested expectations for revenues and growth with better same-store sales growth. BJ’s forward guidance was in line with projections and the company plans an accelerated pace of new store openings over the next two years. As its shares climbed by 28%, we trimmed our position."

A customer happily filling up their tank at the Wholesale Club's gasoline station.

BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) at the end of the fourth quarter compared to 28 in the third quarter. While we acknowledge the potential of BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.