Interview with Sonu Chawla, CFA, Portfolio Manager at TimesSquare Capital Management

Interview Overview

Sonu Chawla, CFA, Portfolio Manager at TimesSquare Capital Management, brings nearly two decades of experience as a disciplined quality growth investor, with a strong emphasis on fundamental research, management quality, and long-term compounding. Her investment philosophy, “growth with a conscience”, guides TimesSquare’s differentiated approach to mid-cap equities, positioning the firm to generate alpha across market cycles.

Interview Highlights

Who is Sonu Chawla, CFA?

• Nearly 20 years of investing experience, spanning technology consulting and asset management
• Former Big 4 technology consultant, providing deep “under-the-hood” business analysis skills
• Education includes IIT Delhi (MS Math & Computer Science) and Kellogg School of Management (MBA)
• CFA charterholder with a long-standing focus on growth investing

Who is TimesSquare Capital Management?

• Boutique investment manager with approximately $8.0 Billion* AUM, specializing in small- and mid-cap quality growth equities
• Chawla oversees approximately $4.65 Billion* within the Mid-Cap Growth strategy
• Employee ownership and alignment with client outcomes
• Investment ideas generated through internal, proprietary research

*Includes Assets Under Management (AUM) and Assets Under Advisory (AUA).

Differentiated Investment Philosophy

• Focus on high-quality businesses with:
  • Strong, aligned management teams
  • Sustainable competitive advantages
  • Clear and durable growth trajectories
• Willingness to invest in pre-profit companies with a credible path to profitability
• Emphasis on long-term risk-adjusted returns, not short-term market sentiment

Research & Portfolio Construction

• Approximately 1,500 management meetings annually
• Bottom-up, fundamental research with proprietary financial modeling
• Barbell-style position sizing balancing:
  • High-conviction, long-duration growth assets
  • Predictable, cash-generative “steady compounders”
• Ongoing thesis re-validation and disciplined sell criteria

High-Conviction Sectors & Themes

• Industrials: Infrastructure services, reshoring, automation, AI-driven data center build-outs
• Information Technology: AI monetization, power management semiconductors, DevSecOps tools
• Defense & Aerospace: Mission-critical components, space and nuclear power exposure
• Financials: Asset managers and specialized platforms (avoiding traditional banks)
• Healthcare & Energy: Novel therapies with pricing power; low-cost energy producers

Featured Q1 2026 Stock Picks

• JFrog (NASDAQ: FROG)
  • AI-enabled software supply chain and DevSecOps leader
  • Expanding use cases in security, AI, and compliance
  • Target price: $78 (Discounted Cash Flow-based)
• Carpenter Technology (NYSE: CRS)
  • High-performance specialty alloys for aerospace and defense
  • Strong pricing power amid long-term supply constraints
  • Target price: $378 (2027 Enterprise Value/EBITDA)

Investment Discipline & Risk Management

• Flexible, thesis-driven sell decisions
• Strong emphasis on intellectual honesty and avoiding “thesis attachment”
• Continuous learning mindset informed by both successes and mistakes

Bottom Line

Sonu Chawla, CFA and TimesSquare Capital Management exemplify a high-conviction, quality growth investing approach, combining deep fundamental research, disciplined portfolio construction, and long-term thematic insight. Their focus on management excellence, durable competitive moats, and structural growth positions the firm to navigate volatility while compounding capital over time.

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Important information

Specific investments described herein do not represent all investment decisions made by the Firm. The reader should not assume that investment decisions identified and discussed were or will be profitable. Specific investment advice references provided herein are for illustrative purposes only and are not necessarily representative of investments that will be made in the future.

This document does not constitute advice or a recommendation or offer to sell or a solicitation to deal in any security or financial product. It is provided for information purposes only and on the understanding that the recipient has sufficient knowledge and experience to be able to understand and make their own evaluation of the proposals and services described herein; any risks associated therewith; and any related legal, tax, accounting or other material considerations. To the extent that the reader has any questions regarding the applicability of any specific issue discussed above to their specific portfolio or situation, prospective investors are encouraged to contact TimesSquare Capital Management, LLC and/or consult with the professional adviser of their choosing.

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (888) ETF-TSCM. Read the prospectus or summary prospectus carefully before investing.

Investing involves risk. Principal loss is possible.

For the TimesSquare Glossary please visit here.

The securities of mid-capitalization companies may be more vulnerable to adverse issuer, market, political, or economic developments than securities of large-capitalization companies. The securities of mid-capitalization companies generally trade in lower volumes and are subject to greater and more unpredictable price changes than large-capitalization stocks or the stock market as a whole.

The Fund will invest in companies that appear to be growth-oriented. Growth companies are those that the Adviser believes will have revenue and earnings that grow faster than the economy as a whole, offering above-average prospects for capital appreciation and little or no emphasis on dividend income.

TimesSquare Capital Management is a boutique investment manager with a 25-year history of managing small to mid cap quality growth portfolios with competitive risk-adjusted returns across market cycles. This new Fund leverages that investment experience, which is expressed in a concentrated offering through a tax-efficient, exchange-traded fund. Prospective investors do not currently have a track record or history on which to base their investment decisions for this exchange-traded fund.

Past performance does not guarantee future results.

Distributed by Foreside Fund Services, LLC