Sector Rotation Pressured TPG (TPG) in Q1

TimesSquare Capital Management, an equity investment management company, released its "U.S. Mid Cap Growth Strategy" first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The Strategy fell 7.72% (net) in the quarter compared to -6.35% for the Russell Midcap Growth Index. In the first quarter, markets navigated geopolitical tensions and economic resilience alongside temporary global tariffs. High oil prices and supply chain disruptions followed U.S. and Israeli involvement in Iran, prompting a shift to safer assets and a reevaluation of supply chains and energy dependencies. Central banks maintained steady policies despite energy-driven inflation. In this environment, the Strategy remains focused on disciplined management teams with durable competitive advantages. Please review the Strategy's top five holdings to gain insights into their key selections for 2026. In its first-quarter 2026 investor letter, TimesSquare Capital U.S. Mid Cap Growth Strategy highlighted TPG Inc. (NASDAQ:TPG). TPG Inc. (NASDAQ:TPG) is a US-based alternative asset management company. On June 30, 2026, TPG Inc. (NASDAQ:TPG) closed at $45.58 per share. One-month return of TPG Inc. (NASDAQ:TPG) was -0.20%, and its shares lost 24.45% over the past 52 weeks. TPG Inc. (NASDAQ:TPG) has a market capitalization of $15.58 billion. TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding TPG Inc. (NASDAQ:TPG) in its Q1 2026 investor letter: "In the Financials sector, we tend to avoid banks experiencing credit deterioration or rising deposit costs, preferring asset managers, specialized insurance companies, or financial technology providers. Alternative asset manager TPG Inc. (NASDAQ:TPG) retreated by -36%, along with other alternative asset managers, primarily due to a sharp, sector-wide rotation out of the sector, driven by investor fears over software exposure and AI disruption. While no limited partners have stepped back to date, management indicated that fundraising may slow and monetization could be delayed. Of note, TPG announced a long‑term strategic partnership with Jackson Financial, a move that significantly bolsters its insurance‑linked fee income and credit scale. We have scaled back the position size." TD Cowen Cuts TPG PT Amid Q1 Preview for Asset Managers TPG Inc. (NASDAQ:TPG) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 48 hedge fund portfolios held TPG Inc. (NASDAQ:TPG) at the end of the first quarter, up from 29 in the previous quarter. While we acknowledge the potential of TPG Inc. (NASDAQ:TPG) 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.