ClearBridge Investments, an investment management company, released its “ClearBridge Small Cap Growth Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The stock market performance in the first quarter of 2025 was volatile, following the initial “animal spirits” post-election rally. The strategy surpassed its benchmark with the support of new ideas, reorienting efforts, and tailwinds in several industries despite volatility and uncertainty. Given the pace of major policy changes, the firm expects ongoing volatility as the effects of tariffs and policymaking have clouded visibility. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first quarter 2025 investor letter, ClearBridge Small Cap Growth Strategy emphasized stocks such as Hims & Hers Health, Inc. (NYSE:HIMS). Hims & Hers Health, Inc. (NYSE:HIMS) offers a telehealth platform that connects consumers to licensed healthcare professionals. The one-month return of Hims & Hers Health, Inc. (NYSE:HIMS) was -19.99%, and its shares gained 90.86% of their value over the last 52 weeks. On April 7, 2025, Hims & Hers Health, Inc. (NYSE:HIMS) stock closed at $27.77 per share with a market capitalization of $6.17 billion.
ClearBridge Small Cap Growth Strategy stated the following regarding Hims & Hers Health, Inc. (NYSE:HIMS) in its Q1 2025 investor letter:
“We continued to generate a number of compelling new ideas, adding five new investments that we still held at quarter end: Glaukos, Rocket Lab USA, Karman Holdings (through its IPO), Archrock, Hims & Hers Health, Inc. (NYSE:HIMS) and Geron.
Hims & Hers is a health care IT services company providing a consumer telehealth platform across a variety of men’s and women’s health categories, including weight loss, dermatology and mental health. With an integrated experience, strong brand recognition and a convenient stigma-free value proposition to consumers, the company is seeing robust revenue growth while improving profitability.”
A nurse in a telehealth platform talking with a patient on video call for consultation.
Hims & Hers Health, Inc. (NYSE:HIMS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Hims & Hers Health, Inc. (NYSE:HIMS) at the end of the fourth quarter compared to 31 in the third quarter. Hims & Hers Health, Inc.’s (NYSE:HIMS) revenue was $481 million for the fourth quarter representing an increase of 95% year-over-year. While we acknowledge the potential of Hims & Hers Health, Inc. (NYSE:HIMS) 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.
We covered Hims & Hers Health, Inc. (NYSE:HIMS) in another article, where we shared the list of most shorted stocks in 2025. In addition, please check out our hedge fund investor letters Q1 2025 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.