Here’s Why HubSpot (HUBS) Detracted from U.S. Focus Growth Equity

Core Insights - TimesSquare Capital Management's "U.S. Focus Growth Strategy" reported a gross return of 11.79% and a net return of 11.56% in Q2 2025, underperforming the Russell Midcap Growth Index which returned 18.20% [1] - The strategy highlighted that growth indexes outperformed value counterparts, with better returns in U.S. small and mid-cap growth indexes coming from stocks with high valuations, negative earnings, or low returns on equity [1] Company Focus: HubSpot, Inc. (NYSE:HUBS) - HubSpot, Inc. reported a one-month return of 13.79% but experienced a 0.69% decline in value over the past 52 weeks, closing at $489.18 per share with a market capitalization of $25.776 billion on September 10, 2025 [2] - HubSpot detracted 2% from the strategy's performance, with revenues and earnings slightly exceeding expectations, and management raised its 2025 guidance, attributing it more to favorable foreign exchange rather than improved fundamentals [3] - Despite solid Q2 results with an 18% year-over-year revenue growth in constant currency, HubSpot is not among the top 30 most popular stocks among hedge funds, with 56 hedge fund portfolios holding its stock at the end of Q2, down from 61 in the previous quarter [4]