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 Rocket Lab USA, Inc. (NASDAQ:RKLB). Rocket Lab USA, Inc. (NASDAQ:RKLB) is a space company that offers launch services and space systems solutions. The one-month return of Rocket Lab USA, Inc. (NASDAQ:RKLB) was -1.74%, and its shares gained 356.25% of their value over the last 52 weeks. On April 7, 2025, Rocket Lab USA, Inc. (NASDAQ:RKLB) stock closed at $17.52 per share with a market capitalization of $7.946 billion.
ClearBridge Small Cap Growth Strategy stated the following regarding Rocket Lab USA, Inc. (NASDAQ:RKLB) 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, Inc. (NASDAQ:RKLB), Karman Holdings (through its IPO), Archrock, Hims & Hers and Geron.
Rocket Lab USA is a manufacturer of spacecraft and satellite components as well as a service provider for satellite launch services, primarily focused today on smaller payloads. With an innovative founder-led management team competing in an enormous market with significant growth in commercial, government and classified applications, we see significant growth potential.”
A launch pad atop a grassy hill, smoke filled sky from a successful voyage to space.
Rocket Lab USA, Inc. (NASDAQ:RKLB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Rocket Lab USA, Inc. (NASDAQ:RKLB) at the end of the fourth quarter compared to 16 in the third quarter. Rocket Lab USA, Inc.’s (NASDAQ:RKLB) revenue for the fourth quarter of 2024 totaled $132 million, exceeding the midpoint of guidance range and highlighting a solid 121% year-over-year growth. While we acknowledge the potential of Rocket Lab USA, Inc. (NASDAQ:RKLB) 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 Rocket Lab USA, Inc. (NASDAQ:RKLB) in another article, where we shared the list of best multibagger stocks to buy 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.