ClearBridge Investments released its second-quarter 2025 investor letter, showing a rebound in the midcap fund driven by AI demand and a low-quality rally. The strategy did not outpace the benchmark but remains optimistic about long-term growth. Check the fund’s top five holdings for best picks in 2025.

Palantir Technologies Inc. (NASDAQ:PLTR) was highlighted in ClearBridge’s letter, with a one-month return of -1.03% and shares gaining 405.55% over 52 weeks. On August 27, 2025, PLTR stock closed at $156.72 per share, with a market cap of $371.793 billion.

Despite strong absolute returns, ClearBridge’s strategy failed to keep pace with the benchmark due to limited exposure to leading participants like Palantir Technologies Inc. (PLTR). The stock rose 55% in the quarter, driven by AI and growth-led rally, impacting relative performance. The team exited Palantir by quarter-end.

Palantir Technologies Inc. (NASDAQ:PLTR) is not among the 30 most popular stocks among hedge funds, with 78 portfolios holding it in the second quarter. While acknowledging its potential, other AI stocks may offer greater upside with less risk. Check out our free report on the best short-term AI stock for more insights.

Read more at Yahoo Finance: ClearBridge Mid Cap Growth Strategy Exited Palantir Technologies (PLTR) as It Left the Benchmark