ClearBridge Investments, an investment management company, released its “ClearBridge Mid Cap Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. Though initially positive, stories on possible tariffs, global trade conflict, and a rotation out of AI-related tech firms send equities lower in the first quarter. In this environment, the ClearBridge Mid Cap Strategy underperformed the benchmark, Russell Midcap Index in the quarter, due to idiosyncratic headwinds, strengthened by the market volatility; put pressure on several of strategy’s technology and industrial holdings. 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 Mid Cap Strategy emphasized stocks such as SailPoint, Inc. Common Stock (NASDAQ:SAIL). SailPoint, Inc. Common Stock (NASDAQ:SAIL) offers identity security solutions for the enterprise. The one-month return of SailPoint, Inc. Common Stock (NASDAQ:SAIL) was -8.45%. On April 10, 2025, SailPoint, Inc. Common Stock (NASDAQ:SAIL) stock closed at $17.12 per share with a market capitalization of $9.529 billion.

ClearBridge Mid Cap Strategy stated the following regarding SailPoint, Inc. Common Stock (NASDAQ:SAIL) in its Q1 2025 investor letter:

"We participated in the IPO of SailPoint, Inc. Common Stock (NASDAQ:SAIL), which offers identity security solutions to help companies manage and secure access to critical data and applications. Having known the company for a long time and previously owned it in its prior publicly traded forms, we believe the incorporation of AI has swelled SailPoint’s total addressable market — already growing at a high pace — as companies will need to begin addressing what data and functions their new AI agents can access across their enterprise."

A user in a cafe using a laptop to access the secure identity platform with a single sign-on.

SailPoint, Inc. Common Stock (NASDAQ:SAIL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the potential of SailPoint, Inc. Common Stock (NASDAQ:SAIL) 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 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.