ClearBridge Investments, a global equity manager, recently published second-quarter 2026 commentary for its “Large Cap Growth Strategy”. A copy of the letter can be downloaded here. Equity markets experienced a significant rally in the second quarter, fueled by robust earnings and increasing optimism regarding easing geopolitical tensions. The S&P 500 Index climbed 15.2% during this period, while the Russell 1000 Growth Index returned 16.7%, despite some volatility in sentiment towards AI. The reconstitution of Russell U.S. Indexes and the SpaceX IPO had a notable impact on large-cap growth benchmarks this quarter. The Strategy transitioned from a diversified to a non-diversified approach in the quarter, allowing for greater flexibility in portfolio management. Against this backdrop, the Strategy underperformed its benchmark, driven by stock selection and sector allocation. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, ClearBridge Large Cap Growth Strategy highlighted Space Exploration Technologies Corp. (NASDAQ:SPCX). Space Exploration Technologies Corp. (NASDAQ:SPCX) is a US-based aerospace company specializing in advanced rockets and spacecraft. On July 8, 2026, Space Exploration Technologies Corp. (NASDAQ:SPCX) closed at $148.30 per share, reflecting a market capitalization of $1.95 trillion.
ClearBridge Large Cap Growth Strategy stated the following regarding Space Exploration Technologies Corp. (NASDAQ:SPCX) in its Q2 2026 investor update:
“Our participation in the Space Exploration Technologies Corp. (NASDAQ:SPCX) IPO also keeps the portfolio in step with a risk-on benchmark. A diversified aerospace and communications company, SpaceX competes in several large addressable markets with a significant technology lead versus peers. Its core competitive advantage is its proven ability to reuse rockets, which materially lowers the cost of delivering payloads into orbit. This capability is supported by the company’s vertically integrated approach to rocket design, manufacturing and launch operations. By combining SpaceX’s operations with Starlink, the dominant satellite Internet provider, the company plans to extend this playbook into AI infrastructure scaling orbital data center compute. SpaceX also has demonstrated the ability to lower the cost of scaling data center compute terrestrially through innovative techniques like onsite battery power generation. Moving forward, key questions are around execution as SpaceX scales its next generation of large payload rockets, enabling the company to unlock multiple new end markets.”
Space Exploration Technologies Corp. (NASDAQ:SPCX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. While we acknowledge the risk and potential of Space Exploration Technologies Corp. (NASDAQ:SPCX) 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 Space Exploration Technologies Corp. (NASDAQ:SPCX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Space Exploration Technologies Corp. (NASDAQ:SPCX) and shared the list of stocks Jim Cramer discussed. 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.
