ClearBridge Investments, an investment management company, released its “ClearBridge Small Cap Growth Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, large cap and growth companies lost their dominance over smaller cap and value stocks. However, the strategy underperformed its benchmark in the third quarter. Underexposure to the benchmark’s strengths (e.g., biotech, smaller cap, poorer quality, bond proxies) and challenges in consumer staples and discretionary names affected strategy performance. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge Mid Cap Growth Strategy highlighted stocks like OneStream, Inc. (NASDAQ:OS), in the third quarter 2024 investor letter. OneStream, Inc. (NASDAQ:OS) develops corporate performance management software solutions. The one-month return of OneStream, Inc. (NASDAQ:OS) was -11.61%, and its shares gained 5.44% of their value over the last three months. On December 10, 2024, OneStream, Inc. (NASDAQ:OS) stock closed at $30.45 per share with a market capitalization of $7.099 billion.
ClearBridge Mid Cap Growth Strategy stated the following regarding OneStream, Inc. (NASDAQ:OS) in its Q3 2024 investor letter:
“We are encouraged by the high proportion of positive returns on new ideas added over the last five quarters of elevated new idea generation, with solid contributions to overall performance despite their representing a modest portion of the Strategy’s assets.
We continued to deliver strong new idea generation, adding four new investments in the quarter: OneStream, Inc. (NASDAQ:OS) (through participating in its IPO), Abercombie & Fitch, Wintrust Financial, and FTAI Aviation.
OneStream is a horizontal software company focused on back-office solutions for the office of the CFO. With a largely organically built platform offering, selling to the enterprise and competing against a variety of entrenched legacy providers, OneStream offers best-in-class growth and ramping profitability.”
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OneStream, Inc. (NASDAQ:OS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held OneStream, Inc. (NASDAQ:OS) at the end of the third quarter which was 0 in the previous quarter. While we acknowledge the potential of OneStream, Inc. (NASDAQ:OS) 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 OneStream, Inc. (NASDAQ:OS) and shared TimesSquare Capital U.S. Small Cap Growth Strategy’s views on the company. 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.