ClearBridge Investments, an investment management company, released its “ClearBridge Small Cap Growth Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. A partial change in leadership in the second half of 2024 may continue into 2025 as a number of macro factors stabilize and small-cap earnings growth is expected to surpass that of its up-market counterparts. In the fourth quarter, the strategy performed in line with the benchmark, the Russell 2000 Growth Index. The strength in industrials and health care was offset by weakness in IT and consumer discretionary sectors. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge Small Cap Growth Strategy highlighted stocks like Clearwater Analytics Holdings, Inc. (NYSE:CWAN) in the Q4 2024 investor letter. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is a technology company that develops and provides a Software-as-a-Service (SaaS) solution. The one-month return of Clearwater Analytics Holdings, Inc. (NYSE:CWAN) was -9.44%, and its shares gained 38.73% of their value over the last 52 weeks. On January 8, 2025, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) stock closed at $27.26 per share with a market capitalization of $6.741 billion.
ClearBridge Small Cap Growth Strategy stated the following regarding Clearwater Analytics Holdings, Inc. (NYSE:CWAN) in its Q4 2024 investor letter:
“2024 proved a particularly active year for new idea generation: we added 23 new investments while exiting 29 due to a variety of considerations, including acquisitions, market capitalization constraints, and our assessment of forward return potential. While many of the new investments we made during the year are of relatively modest size, we will continue to build these positions over time provided company execution and end market prospects remain intact. In the fourth quarter we initiated five new investments: Oscar Health, TG Therapeutics, Clearwater Analytics Holdings, Inc. (NYSE:CWAN), Fluor and Modine.
Clearwater Analytics is a vertical cloud software provider of investment accounting and analytics solutions for corporate, insurance and asset management customers. The company has seen an attractive combination of robust revenue growth through client wins and product expansion, as well as significant margin expansion.”
A wide shot of a large financial data center.
Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Clearwater Analytics Holdings, Inc. (NYSE:CWAN) at the end of the third quarter which was 20 in the previous quarter. Clearwater Analytics Holdings, Inc.’s (NYSE:CWAN) revenue for the third quarter was $115.8 million, representing a 22.4% year-on-year increase. While we acknowledge the potential of Clearwater Analytics Holdings, Inc. (NYSE:CWAN) 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 Clearwater Analytics Holdings, Inc. (NYSE:CWAN) and shared Wasatch Small Cap Growth Strategy’s views on the company in the previous quarter. 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.