ClearBridge Investments, an investment management company, released its “ClearBridge Growth Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. Due to stock-specific weakness in a handful of holdings and a lack of exposure to several of the top-performing, higher-beta growth companies, the strategy underperformed its benchmark the Russell Mid Cap Growth Index in a momentum-driven market. Following Trump’s victory, small-cap, value, and cyclical shares saw a spike in price; however, growth stocks regained their lead by the end of the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge Growth Strategy highlighted stocks like Robinhood Markets, Inc. (NASDAQ:HOOD), in the fourth quarter 2024 investor letter. Robinhood Markets, Inc. (NASDAQ:HOOD) is a financial services platform that enables users to invest in stocks, exchange-traded funds (ETFs), American depository receipts, options, gold, and cryptocurrencies. The one-month return of Robinhood Markets, Inc. (NASDAQ:HOOD) was 3.76%, and its shares gained 248.51% of their value over the last 52 weeks. On January 8, 2025, Robinhood Markets, Inc. (NASDAQ:HOOD) stock closed at $40.81 per share with a market capitalization of $36.075 billion.
ClearBridge Growth Strategy stated the following regarding Robinhood Markets, Inc. (NASDAQ:HOOD) in its Q4 2024 investor letter:
“Additionally, we purchased Robinhood Markets, Inc. (NASDAQ:HOOD), an established disruptor in retail brokerage with a brand that resonates across younger cohorts. The company ushered in the era of commission-free trading by leveraging payment for order flow from market makers and also generates revenue from cryptocurrency transactions. While currently maintaining only about 1% market share of self-directed assets, Robinhood is taking share in a large, secularly growing industry. Robinhood should significantly benefit from the upcoming change in administration with reduced regulatory risk around payment-for-order flow and the potential for policies supportive of cryptocurrency to create a runway for new growth opportunities.”
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Robinhood Markets, Inc. (NASDAQ:HOOD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Robinhood Markets, Inc. (NASDAQ:HOOD) at the end of the third quarter which was 38 in the previous quarter. While we acknowledge the potential of Robinhood Markets, Inc. (NASDAQ:HOOD) 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 Robinhood Markets, Inc. (NASDAQ:HOOD) and shared the list of Crypto stocks with the biggest upside potential. 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.