ClearBridge Investments, an investment management company, released its “ClearBridge Large Cap Growth Strategy” fourth-quarter 2025 investor letter. The investment philosophy of the strategy is to invest in leading companies that are undervalued by the market in terms of their future growth potential. A copy of the letter can be downloaded here. Large-cap stocks continued their strength in the quarter, driven by strong earnings growth from mega-cap companies and enthusiasm over generative AI. The ClearBridge Large Cap Growth Strategy underperformed the Russell 1000 Growth Index by approximately 900 basis points for the year. It continued to lag behind the benchmark, trailing its 1.2% quarterly advance by about 170 basis points during the fourth quarter. The underweight exposure to mega-cap AI beneficiaries and lower-quality AI-related names contributed to the underperformance. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, ClearBridge Large Cap Growth Strategy highlighted stocks such as Equinix, Inc. (NASDAQ:EQIX). Equinix, Inc. (NASDAQ:EQIX) is a digital infrastructure company. The one-month return of Equinix, Inc. (NASDAQ:EQIX) is 2.97%, and its shares have lost 18.35% of their value over the last 52 weeks. On January 6, 2026, Equinix, Inc. (NASDAQ:EQIX) stock closed at $776.55 per share, with a market capitalization of $76.25 billion.
ClearBridge Large Cap Growth Strategy stated the following regarding Equinix, Inc. (NASDAQ:EQIX) in its fourth quarter 2025 investor letter:
“Meanwhile, the Strategy’s more diversified exposure to AI through ownership of Eaton, Accenture and Equinix, Inc. (NASDAQ:EQIX) did not add significant value in 2025. Data center operator Equinix should benefit from the growing importance of sharing data across clouds, but the returns on a large capital spending project will delay revenue growth acceleration until 2027. We view the company as a later stage AI beneficiary, especially if all the current spending begins to produce a positive return on investment.”
Equinix, Inc. (NASDAQ:EQIX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 58 hedge fund portfolios held Equinix, Inc. (NASDAQ:EQIX) at the end of the third quarter, compared to 66 in the previous quarter. While we acknowledge the potential of Equinix, Inc. (NASDAQ:EQIX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
