ClearBridge Investments, an investment management company, released its “ClearBridge Small Cap Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The Fed’s rate cut in September contributed to a shift from large-cap generative AI winners to a broader range of market leadership, particularly in small-cap stocks. However, the strategy underperformed its benchmark in the third quarter because weaknesses in the communication services and IT sectors outweighed the strong performances in health care and consumer discretionary. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge Small Cap Strategy highlighted stocks like BigCommerce Holdings, Inc. (NASDAQ:BIGC), in the third quarter 2024 investor letter. BigCommerce Holdings, Inc. (NASDAQ:BIGC) offers software-as-a-service platform for enterprises, small businesses, and mid-markets. The one-month return of BigCommerce Holdings, Inc. (NASDAQ:BIGC) was -11.14%, and its shares lost 24.00% of their value over the last 52 weeks. On January 6, 2025, BigCommerce Holdings, Inc. (NASDAQ:BIGC) stock closed at $6.62 per share with a market capitalization of $518.876 million.
ClearBridge Small Cap Strategy stated the following regarding BigCommerce Holdings, Inc. (NASDAQ:BIGC) in its Q3 2024 investor letter:
“Stock selection in the IT sector also detracted from performance, with the broadening of market participation into other sectors proving additional headwinds to several of our holdings. This included BigCommerce Holdings, Inc. (NASDAQ:BIGC), which provides a software platform that helps enable e-commerce. Struggles in the company’s go-to-market execution weighed on performance during the quarter, further extending its turnaround.”
Highlighting the company’s sector and industry, a technician working on a complex SaaS in a technology lab.
BigCommerce Holdings, Inc. (NASDAQ:BIGC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held BigCommerce Holdings, Inc. (NASDAQ:BIGC) at the end of the third quarter which was 19 in the previous quarter. In the third quarter, BigCommerce Holdings, Inc.’s (NASDAQ:BIGC) total revenue was just under $84 million, up 7% year over year. While we acknowledge the potential of BigCommerce Holdings, Inc. (NASDAQ:BIGC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed BigCommerce Holdings, Inc. (NASDAQ:BIGC) and shared the list of hidden gem AI stocks. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.