ClearBridge Investments, an investment management company, released its “ClearBridge Large Cap Growth Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, increased volatility was caused by weak employment reports, leading to a brief correction in parts of the U.S. equity market. However, after a 50 basis point interest rate cut by the Federal Reserve, stocks rallied, with the S&P 500 Index rising by 5.89% and the small-cap Russell 2000 Index jumping by 9.27%. Leadership in equities broadened beyond the Magnificent Seven companies. In the quarter, profit-taking among large-cap companies and early signs of a possible market rotation caused growth stocks to underperform value stocks. The benchmark Russell 1000 Growth Index increased by 3.19%, falling behind the Russell 1000 Value Index, which saw a growth of 9.43%. The strategy outperformed in the quarter driven by broader participation among stable and cyclical growth positions in health care, communication services, and industrials. 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 Atlassian Corporation (NASDAQ:TEAM), in the third quarter 2024 investor letter. Atlassian Corporation (NASDAQ:TEAM) is a company that designs, develops, licenses, and maintains various software products. The one-month return of Atlassian Corporation (NASDAQ:TEAM) was -0.54%, and its shares lost 19.46% of their value over the last 52 weeks. On October 3, 2024, Atlassian Corporation (NASDAQ:TEAM) stock closed at $160.44 per share with a market capitalization of $41.719 billion.
ClearBridge Large Cap Growth Strategy stated the following regarding Atlassian Corporation (NASDAQ:TEAM) in its Q3 2024 investor letter:
“Workflow and collaboration software maker Atlassian Corporation (NASDAQ:TEAM) was also sold as it continues to experience seat-based spending pressure from end-customers rationalizing headcount and re-prioritizing information technology (IT) budgets. The company is also executing upon an on-premise to cloud migration, which has introduced incremental volatility to operating results.”
A modern software engineering team, huddled around their desks, discussing a software solution.
Atlassian Corporation (NASDAQ:TEAM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Atlassian Corporation (NASDAQ:TEAM) at the end of the second quarter which was 51 in the previous quarter. While we acknowledge the potential of Atlassian Corporation (NASDAQ:TEAM) 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 Atlassian Corporation (NASDAQ:TEAM) and shared the list of best cloud stocks to buy according to short sellers. In addition, please check out our hedge fund investor letters Q3 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.