ClearBridge Investments, an investment management company, released its “ClearBridge SMID Cap Growth Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The Strategy underperformed its Russell 2500 Growth Index benchmark in the quarter. Although there were strong contributions from a few companies across different sectors, the underperformance relative to the benchmark was minimal during the second quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge SMID Cap Growth Strategy highlighted stocks like Rubrik, Inc. (NYSE:RBRK), in the second quarter 2024 investor letter. Rubrik, Inc. (NYSE:RBRK) offers data security solutions to individuals and businesses. The one-month return of Rubrik, Inc. (NYSE:RBRK) was -8.85%, and its shares gained 3.52% of their value over the last three months. On September 26, 2024, Rubrik, Inc. (NYSE:RBRK) stock closed at $31.74 per share with a market capitalization of $5.766 billion.
ClearBridge SMID Cap Growth Strategy stated the following regarding Rubrik, Inc. (NYSE:RBRK) in its Q2 2024 investor letter:
“The IPO and capital markets have begun to rebound, albeit slowly, providing new investment opportunities and idea generation. In fact, this quarter saw our first IPO participation since the capital markets fervor of 2021 with data security provider Rubrik, Inc. (NYSE:RBRK). Rubrik, meanwhile, is a next-generation data storage, backup and recovery provider showing strong, double-digit subscription revenue growth. We believe its cloud-based offerings have resonated with its Fortune 500 customer base, positioning it well to continue to take share from legacy data backup providers. The introduction of new AI data security products could offer an additional revenue source to Rubrik’s business.”
Rubrik, Inc. (NYSE:RBRK) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Rubrik, Inc. (NYSE:RBRK) at the end of the second quarter which was 0 in the previous quarter. Rubrik, Inc (NYSE:RBRK) had an exceptional Q2, exceeding all expected top-line and profitability metrics (See the details here). While we acknowledge the potential of Rubrik, Inc. (NYSE:RBRK) 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 Rubrik, Inc. (NYSE:RBRK) and shared worst cloud stocks to buy according to short sellers. In addition, please check out our hedge fund investor letters Q2 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.