ClearBridge Investments, an investment management company, released its “ClearBridge Mid Cap Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. Beginning in July, a significant shift away from large caps fueled a rebound and helped the Russell Midcap Index beat its peers with larger sizes. The Russell Midcap Index returned 9.21% in the quarter compared to a 6.08% gain of the large-cap Russell 1000 Index. During the quarter, the strategy underperformed its Russell Midcap Index. Detractors in the industrial and communication services sectors outweighed positive contributions from holdings in IT and healthcare. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge Mid Cap 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 Mid Cap Strategy stated the following regarding Pinterest, Inc. (NYSE:PINS) in its Q3 2024 investor letter:
“Selection in the communication services sector also weighed on performance, primarily driven by a decline in Pinterest, Inc. (NYSE:PINS), which operates a social media platform where users can express their interests and discover ideas through images they “pin” to their pages. Having been a strong contributor in the first half of the year, the company gave back some of its gains as investors captured gains and an uptick in economic uncertainty pushed out spending by leading advertisers. We capitalized on this weakness to add to the position, as we believe that several of its internal initiatives to increase the monetization of its users and become a better value-added advertiser to its customers are coming to fruition.”
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. 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.