Here’s Why ClearBridge All Cap Growth Strategy Closed MongoDB (MDB)

ClearBridge Investments, an investment management company, released its “ClearBridge All Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, growth stocks led the stock market to rebound from tariff uncertainty. The benchmark Russell 3000 Growth Index performed better as risk-on sentiment took hold, rising 17.6% and outperforming the Russell 3000 Value Index by over 1,300 basis points. The Strategy underperformed its Russell 3000 Growth Index benchmark in the second quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, ClearBridge All Cap Growth Strategy highlighted stocks such as MongoDB, Inc. (NASDAQ:MDB). MongoDB, Inc. (NASDAQ:MDB) is a global provider of general-purpose database platforms. The one-month return of MongoDB, Inc. (NASDAQ:MDB) was 39.16%, and its shares gained 8.42% of their value over the last 52 weeks. On August 29, 2025, MongoDB, Inc. (NASDAQ:MDB) stock closed at $315.61 per share, with a market capitalization of $25.68 billion.

ClearBridge All Cap Growth Strategy stated the following regarding MongoDB, Inc. (NASDAQ:MDB) in its second quarter 2025 investor letter:

“We also closed out of MongoDB, Inc. (NASDAQ:MDB), a category leader in modern database architecture whose recent fundamentals have been negatively impacted by the timing of multi-year renewals and a more cautious IT spending backdrop. Decelerating growth has also fueled investor concerns about rising competition, a bear case difficult to dispel without a clear catalyst on the horizon for a re acceleration of growth.”

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MongoDB, Inc. (NASDAQ:MDB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 75 hedge fund portfolios held MongoDB, Inc. (NASDAQ:MDB) at the end of the second quarter, which was 72 in the previous quarter. MongoDB, Inc. (NASDAQ:MDB) reported revenue of $591 million in the second quarter of fiscal 2026, representing a 24% year over year increase and above the high end of guidance range. While we acknowledge the risk and potential of MongoDB, Inc. (NASDAQ:MDB) 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 MongoDB, Inc. (NASDAQ:MDB) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered MongoDB, Inc. (NASDAQ:MDB) and shared the list of best predictive analytics stocks to buy. In addition, please check out our hedge fund investor letters Q2 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.