ClearBridge Investments released its fourth-quarter 2025 investor letter for the ClearBridge Large Cap Growth Strategy, which underperformed the Russell 1000 Growth Index by 900 basis points for the year. The strategy attributed its lagging performance to underweight exposure to mega-cap AI beneficiaries and lower-quality AI-related names. Check out the fund’s top five holdings for 2025.

In the fourth-quarter 2025 investor letter, ClearBridge Large Cap Growth Strategy highlighted Alphabet Inc. (NASDAQ:GOOG), which saw its stock close at $322.43 per share on January 7, 2026. Alphabet Inc. (NASDAQ:GOOG) has a market capitalization of $3.89 trillion and experienced a one-month return of 2.78%, with shares gaining 65.02% over the last 52 weeks.

ClearBridge Large Cap Growth Strategy mentioned in its investor letter that it did not scale up its positions in Alphabet Inc. (NASDAQ:GOOG) enough, causing a performance drag due to a ~350 bps underweight. The company’s success with Google Gemini chatbot and TPU chips for AI workloads boosted its shares by over 60% in 2025.

Alphabet Inc. (NASDAQ:GOOG) is the 7th most popular stock among hedge funds, with 186 hedge fund portfolios holding the stock at the end of the third quarter of 2025. In the same quarter, Alphabet Inc. (NASDAQ:GOOG) achieved its first-ever $100 billion in revenue. While the company shows potential as an investment, certain AI stocks may offer greater upside potential and less downside risk.

Read more at Yahoo Finance: ClearBridge Large Cap Growth Strategy’s Views on Alphabet (GOOG)