ClearBridge Investments, an investment management company, released its “ClearBridge Large Cap Growth Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. During a time of momentum-driven returns and heightened investor optimism following Donald Trump’s re-election, the more defensively oriented Strategy lagged behind. The S&P 500 Index advanced 2.41% in the quarter to finish 2024 up 25.02%. The benchmark Russell 1000 Growth Index (RLG) jumped 7.07% for the quarter and 33.36% for the year. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge Large Cap Growth Strategy highlighted stocks like Airbnb, Inc. (NASDAQ:ABNB) in the fourth quarter 2024 investor letter. Headquartered in San Francisco, California, Airbnb, Inc. (NASDAQ:ABNB) operates a platform that connects hosts and guests. The one-month return of Airbnb, Inc. (NASDAQ:ABNB) was -5.07%, and its shares lost 5.91% of their value over the last 52 weeks. On January 7, 2025, Airbnb, Inc. (NASDAQ:ABNB) stock closed at $131.29 per share with a market capitalization of $82.026 billion.
ClearBridge Large Cap Growth Strategy stated the following regarding Airbnb, Inc. (NASDAQ:ABNB) in its Q4 2024 investor letter:
“We also reduced the Strategy’s consumer discretionary underweight with the purchase of peer-to-peer lodging marketplace Airbnb, Inc. (NASDAQ:ABNB). Travel in aggregate is an attractive end market with Airbnb’s alternative accommodations segment gaining share in the industry. The company’s marketplace business model is one we are familiar with given our investments in Uber Technologies and Amazon.com (which operates both a marketplace and fulfillment model) and find attractive due to high margins and returns on investment for these businesses. Following a period of slowing travel demand at Airbnb, which we view as largely cyclical, and a commensurate reduction in growth estimates and valuation, we believe the stock offers an attractive risk-reward tradeoff for a high-quality, stable growth business.”
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Airbnb, Inc. (NASDAQ:ABNB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held Airbnb, Inc. (NASDAQ:ABNB) at the end of the third quarter which was 63 in the previous quarter. Airbnb, Inc.’s (NASDAQ:ABNB) revenue grew 10% year-over-year in the third quarter to $3.7 billion. While we acknowledge the potential of Airbnb, Inc. (NASDAQ:ABNB) 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 Airbnb, Inc. (NASDAQ:ABNB) and shared the list of best travel stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.