ClearBridge Investments, a global equity manager, recently published second-quarter 2026 commentary for its “SMID Cap Growth Strategy”. A copy can be downloaded here. Small and mid-cap (SMID) growth equities experienced the strongest quarter in recent memory, with the Russell 2500 Growth Index rising 24.0%, driven by enthusiasm for AI infrastructure and higher-beta momentum stocks. The Strategy delivered double-digit returns in the quarter but trailed the soaring benchmark. Underperformance was driven by underexposure to top AI infrastructure stocks as well as weaknesses in healthcare and consumer discretionary sectors. The market leadership expanded beyond mega-cap technology, indicating potential opportunities from a broader cyclical recovery and AI adoption. In addition, you can check the Fund’s top five holdings to determine its best picks for 2026.
In its Q2 2026 investor letter, ClearBridge SMID Cap Growth Strategy highlighted Bloom Energy Corporation (NYSE:BE) as a leading contributor. Bloom Energy Corporation (NYSE:BE) is an energy company that focuses on designing and manufacturing solid-oxide fuel cell systems for clean, reliable, on-site power generation. On July 10, 2026, Bloom Energy Corporation (NYSE:BE) closed at $244.61 per share, reflecting a market capitalization of $69.58 billion. Bloom Energy Corporation (NYSE:BE) posted a one-month return of -10.89%, while its shares gained 842.26% over the past 52 weeks.
ClearBridge SMID Cap Growth Strategy stated the following regarding Bloom Energy Corporation (NYSE:BE) in its Q2 2026 investor update:
“The Strategy saw strength in long-standing investments outside of IT that offered participation in the AI infrastructure investment cycle alongside competitive differentiation. Bloom Energy Corporation (NYSE:BE) also participated in enthusiasm for alternative power solutions as investors focused on rising electricity requirements for data centers and AI infrastructure.”
Bloom Energy Corporation (NYSE:BE) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 91 hedge fund portfolios held Bloom Energy Corporation (NYSE:BE) at the end of the first quarter, up from 88 in the previous quarter. In Q1 2026, Bloom Energy Corporation (NYSE:BE) generated revenue of $751.1 million up 130.4% year-over-year. While we acknowledge the risk and potential of Bloom Energy Corporation (NYSE:BE) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Bloom Energy Corporation (NYSE:BE) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Bloom Energy Corporation (NYSE:BE) and shared the list of best stocks to buy following Federal Reserve pivot expectations. In addition, please check out our hedge fund investor letters Q2 2026 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.
