ClearBridge Investments, a global equity manager, recently published first-quarter 2026 commentary for its “Large Cap Growth Strategy”. A copy of the letter can be downloaded here. Following the outbreak of the Middle East conflict, the market experienced a significant decline in growth stocks, resulting in substantial losses. In the quarter, the S&P 500 Index fell 4.3% while the benchmark Russell 1000 Growth Index declined 9.8%, compared to the Russell 1000 Value Index’s 2.1% gain. In a volatile environment, the ClearBridge Large Cap Growth Strategy outperformed its benchmark, benefiting from a shift away from technology and momentum stocks that led the market in 2025. The strategy saw a positive reversal in communication services and strong support from cyclical growth sectors like industrials, materials, and parts of IT. The Strategy repositioned its portfolio to increase exposure in semiconductors and biopharmaceuticals, and exited positions with turnaround delays to maintain discipline. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, ClearBridge Large Cap Growth Strategy highlighted stocks like PayPal Holdings, Inc. (NASDAQ:PYPL). PayPal Holdings, Inc. (NASDAQ:PYPL) is a leading technology platform that provides digital payment solutions for merchants and consumers. On April 8, 2026, PayPal Holdings, Inc. (NASDAQ:PYPL) stock closed at $45.85 per share. One-month return of PayPal Holdings, Inc. (NASDAQ:PYPL) was 3.36%, and its shares lost 24.29% over the past 52 weeks. PayPal Holdings, Inc. (NASDAQ:PYPL) has a market capitalization of $42.21 billion.
ClearBridge Large Cap Growth Strategy stated the following regarding PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q1 2026 investor letter:
“We exited PayPal Holdings, Inc. (NASDAQ:PYPL) and Equinix during the quarter. When we invest in businesses like PayPal executing upon turnarounds, we regularly weigh the positive outcome of improved execution with downside risks, including the opportunity cost of longer than expected paths to improvement. While there are some signs of improvement in PayPal’s business, the turnaround has proved more challenging than expected, leading us to exit the position.”
PayPal Holdings, Inc. (NASDAQ:PYPL) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 78 hedge fund portfolios held PayPal Holdings, Inc. (NASDAQ:PYPL) at the end of the fourth quarter, compared to 86 in the previous quarter. While we acknowledge the risk and potential of PayPal Holdings, Inc. (NASDAQ:PYPL) 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 PayPal Holdings, Inc. (NASDAQ:PYPL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered PayPal Holdings, Inc. (NASDAQ:PYPL) and shared stocks that could 10X over the next 5 years. In addition, please check out our hedge fund investor letters Q1 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.
