ClearBridge Investments, an investment management company, released its “ClearBridge Growth Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. Signs of inflation cooling, and an ambitious Federal Reserve rate-cutting cycle led to broad equity market gains in Q3, primarily driven by smaller capitalization companies. In the quarter value shares outperformed with the Russell Midcap Value increasing 10.08% compared to the Russell Midcap Growth Index’s 6.54% gain. Against this backdrop, the strategy underperformed the Russell Midcap Growth Index benchmark. Idiosyncratic headwinds across a few of the Strategy’s holdings hindered performance. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge Growth Strategy highlighted stocks like Pinterest, Inc. (NYSE:PINS) in the third quarter 2024 investor letter. Pinterest, Inc. (NYSE:PINS) is a visual search and discovery platform that enables users to find ideas, such as recipes, home and style inspiration. The one-month return of Pinterest, Inc. (NYSE:PINS) was 12.66%, and its shares gained 15.67% of their value over the last 52 weeks. On October 8, 2024, Pinterest, Inc. (NYSE:PINS) stock closed at $32.92 per share with a market capitalization of $22.59 billion.
ClearBridge Growth Strategy stated the following regarding Pinterest, Inc. (NYSE:PINS) in its Q3 2024 investor letter:
“Social media platform and digital advertiser Pinterest, Inc. (NYSE:PINS) was also under pressure following last quarter’s results, which disappointed relative to expectations. In addition, the company’s outlook was impacted by weaker brand spending, particularly among food and beverage companies. However, management continues to make progress on driving strong user engagement, executing on product and sales and improving returns for lower-funnel campaigns, supporting our conviction in the name.”
A young, stylish woman using her smartphone to find inspiration for her latest DIY project.
Pinterest, Inc. (NYSE:PINS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held Pinterest, Inc. (NYSE:PINS) at the end of the second quarter which was 64 in the previous quarter. In the second quarter Pinterest, Inc. (NYSE:PINS) delivered $854 million in revenues, up 21% year-over-year. While we acknowledge the potential of Pinterest, Inc. (NYSE:PINS) 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 Pinterest, Inc. (NYSE:PINS) and shared the list of cheap internet stocks to invest in. Pinterest, Inc. (NYSE:PINS) contributed to the performance of Columbia Contrarian Core Fund during Q2 2024. 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.