ClearBridge Investments, a global equity manager, recently published first-quarter 2026 commentary for its “Mid Cap Strategy”. A copy of the letter can be downloaded here. Mid-cap stocks showed strong performance in Q1, with the Russell Midcap Index rising 1.3%, outperforming both large-cap and small-cap stocks. In contrast, large-cap equities dropped 4.2%, while small-caps increased by only 0.9%; this dynamic suggested broadening in market leadership. Though investor concerns about the US-Israel-Iran conflict influenced mid-cap stocks, their performance was more focused on company fundamentals and sector trends. However, the ClearBridge Mid Cap Strategy underperformed its benchmark due to challenges in the IT, health care, and consumer discretionary sectors. The Strategy focuses on the consumer discretionary sector, acquiring firms that can perform in a variety of circumstances while being adaptable as the environment changes. Please review the Strategy’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, ClearBridge Mid Cap Strategy highlighted Doximity, Inc. (NYSE:DOCS) as one of the leading detractors. Headquartered in San Francisco, California, Doximity, Inc. (NYSE:DOCS) provides a cloud-based digital platform for medical professionals. On April 10, 2026, Doximity, Inc. (NYSE:DOCS) stock closed at $21.05 per share. One-month return of Doximity, Inc. (NYSE:DOCS) was -14.40%, and its shares lost 59.98% of their value over the last three months. Doximity, Inc. (NYSE:DOCS) has a market capitalization of $3.96 billion.
ClearBridge Mid Cap Strategy stated the following regarding Doximity, Inc. (NYSE:DOCS) in its Q1 2026 investor letter:
“Health care was an area of weakness during the quarter. Declines were particularly prevalent in contract research organization ICON and digital health platform Doximity, Inc. (NYSE:DOCS), due to investor concerns over the possibility of AI disruption in drug development and advertising. We exited our ICON position during the quarter but continue to hold a small position in Doximity as we believe that it is competitively well positioned and, despite being caught up in near-term disruption concerns, will be a long-term beneficiary of AI.”
Doximity, Inc. (NYSE:DOCS) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 51 hedge fund portfolios held Doximity, Inc. (NYSE:DOCS) at the end of the fourth quarter, up from 44 in the previous quarter. In the third quarter of fiscal 2026, Doximity, Inc. (NYSE:DOCS) reported revenue of $185 million, reflecting 10% year-year-year growth and exceeding the high-end of guidance by 2%. While we acknowledge the risk and potential of Doximity, Inc. (NYSE:DOCS) 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 Doximity, Inc. (NYSE:DOCS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Doximity, Inc. (NYSE:DOCS) and shared the list of stocks set to explode in the next 3 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.
