Here’s What Led ClearBridge Mid Cap Growth Strategy to Exit Its Stake in Corpay (CPAY)

ClearBridge Investments, an investment management company, released its “ClearBridge Mid Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy reported modest gains in the challenging environment, driven by monetary policy shifts, stabilizing earnings, and improving investor sentiment.  However, the strategy outperformed the Russell Midcap Growth Index, which returned 2.8%. The firm believes that the Strategy is well-positioned to benefit from its fundamental, bottom-up philosophy even though near-term volatility exists. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, ClearBridge Mid Cap Growth Strategy highlighted stocks such as Corpay, Inc. (NYSE:CPAY). Corpay, Inc. (NYSE:CPAY) is a payment company that helps businesses and consumers manage vehicle-related expenses. The one-month return of Corpay, Inc. (NYSE:CPAY) was -5.37%, and its shares lost 14.28% of their value over the last 52 weeks. On October 9, 2025, Corpay, Inc. (NYSE:CPAY) stock closed at $290.85 per share, with a market capitalization of $20.538 billion.

ClearBridge Mid Cap Growth Strategy stated the following regarding Corpay, Inc. (NYSE:CPAY) in its third quarter 2025 investor letter:

“Financials also proved a modest drag on performance, with several holdings under pressure from macro volatility and company-specific disappointments. Corpay, Inc. (NYSE:CPAY), a payments company that helps businesses consumers manage vehicle-related, lodging and corporate payments, declined due to concerns over the company’s exposure to South American economies and uncertainty over how it will negotiate an environment where stablecoins become a bigger presence — a reason that led us to ultimately exit the position.”

Corpay, Inc. (NYSE:CPAY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 42 hedge fund portfolios held Corpay, Inc. (NYSE:CPAY) at the end of the second quarter, up from 40 in the previous quarter.  While we acknowledge the risk and potential of Corpay, Inc. (NYSE:CPAY) 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 Corpay, Inc. (NYSE:CPAY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Corpay, Inc. (NYSE:CPAY) and shared Middle Coast Investing’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.