ClearBridge Investments, an investment management company, released its “ClearBridge Small Cap Growth Strategy” Q4 2025 investor letter. A copy of the letter can be downloaded here. The Strategy underperformed the Russell 2000 Growth Index in the fourth quarter, after a strong first three quarters of 2025. Market’s overreactions to earnings disappointments in the technology sector and a biotech rally drove the relative underperformance of the Strategy in the quarter. In a volatile year, dominated by a narrow set of themes, the small caps failed to outperform large caps, echoing the past two years, although broadening appears to be emerging. Heading to 2026, the Strategy is optimistic about the favorable backdrop for small-cap growth stocks following years of narrow market leadership and performance disparities. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, ClearBridge Small Cap Growth Strategy highlighted stocks such as Bloom Energy Corporation (NYSE:BE). 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 March 26, 2026, Bloom Energy Corporation (NYSE:BE) stock closed at $133.52 per share. One-month return of Bloom Energy Corporation (NYSE:BE) was -14.23%, and its shares gained 556.76% over the past 52 weeks. Bloom Energy Corporation (NYSE:BE) has a market capitalization of $37.46 billion.
ClearBridge Small Cap Growth Strategy stated the following regarding Bloom Energy Corporation (NYSE:BE) in its fourth quarter 2025 investor letter:
“We benefited from stronger performance across investments in the industrials sector. Longstanding holding Bloom Energy Corporation (NYSE:BE) continued to be one of our top performers, as the company’s alternative power solutions are increasingly being called upon to assist electricity-starved data centers.”
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, 88 hedge fund portfolios held Bloom Energy Corporation (NYSE:BE) at the end of the fourth quarter, up from 64 in the previous quarter. Bloom Energy Corporation (NYSE:BE) delivered $777.7 million in revenue for the fourth quarter of 2025, marking an increase of 35.9% YoY. 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 a list of stocks that were heavily battered. Bloom Energy Corporation (NYSE:BE) contributed to Polen 5Perspectives Small Growth Strategy’s performance during Q4 2025. In addition, please check out our hedge fund investor letters Q4 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.
