TimesSquare U.S. Focus Growth Strategy Exits CrowdStrike Stake Amid Market Cap Reassessment

The TimesSquare U.S. Focus Growth Strategy has divested its full stake in CrowdStrike Holdings (CRWD), according to recent filing disclosures. The decision follows internal reassessment of the fund’s exposure to large-cap technology equities, with the fund citing CRWD’s market capitalization exceeding $200 billion as a limiting factor in portfolio allocation strategies. This threshold has prompted adjustments to maintain alignment with the fund’s growth and liquidity mandates. CrowdStrike, a leader in cloud-native cybersecurity, has seen its market cap surge past $205 billion in late 2024, reflecting strong investor confidence in its endpoint protection and threat intelligence platforms. However, such valuations have placed the stock outside the optimal range for certain growth-oriented funds seeking more balanced exposure across market capitalizations. The exit coincides with broader shifts in institutional investor behavior, particularly among funds managing assets under $10 billion, where market cap thresholds often dictate sector-specific positioning. The sale of CRWD, estimated at approximately 1.4 million shares, represents a notable reduction in the stock’s institutional ownership base, which had previously seen over 75% of shares held by mutual funds and ETFs. Market reaction has been muted, with CRWD trading within a 0.6% range post-announcement. However, analysts note that the move may influence peer valuations in the cybersecurity space, particularly for mid-cap players like SentinelOne (S) and Zscaler (ZS), which could see increased interest as alternative growth vehicles.