Here’s Why ClearBridge Growth Strategy Decided to Sell Accenture plc (ACN)

ClearBridge Investments, an investment management company, released its “ClearBridge Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities significantly rallied in the third quarter, with the S&P 500 returning 8.1%. The benchmark Russell Midcap Growth Index surged 2.8%. The investor optimism was driven by better-than-feared tariff outcomes, the passing of the One Big Beautiful Bill Act in July, anticipated interest rate cuts, and better corporate earnings. The strategy outperformed the benchmark in the quarter, driven by momentum in the AI-focused investments, while also having exposure to various other thematic bets. 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 Growth Strategy highlighted stocks such as Accenture plc (NYSE:ACN). Accenture plc (NYSE:ACN) is a professional services company that provides management consulting, technology, and outsourcing services. The one-month return of Accenture plc (NYSE:ACN) was 3.85%, and its shares lost 29.98% of their value over the last 52 weeks. On November 13, 2025, Accenture plc (NYSE:ACN) stock closed at $247.57 per share, with a market capitalization of $153.528 billion.

ClearBridge Growth Strategy stated the following regarding Accenture plc (NYSE:ACN) in its third quarter 2025 investor letter:

“We also exited IT consultant Accenture plc (NYSE:ACN) as DOGE-related spending cuts are weighing on the company’s federal business and creating uncertainty for Accenture’s fiscal year outlook. As such, we opted to reallocate capital toward higher conviction opportunities such as newer positions Axon and Howmet Aerospace.”

Accenture’s (ACN) Oversold Status May Offer a Smart Entry Point for Dividend Investors

Accenture plc (NYSE:ACN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 65 hedge fund portfolios held Accenture plc (NYSE:ACN) at the end of the second quarter, compared to 69 in the previous quarter. In the fiscal fourth quarter of 2025, Accenture plc (NYSE:ACN) reported revenues of $17.6 billion, reflecting a 7% increase in U.S. dollars and 4.5% in local currency. While we acknowledge the risk and potential of Accenture plc (NYSE:ACN) 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 Accenture plc (NYSE:ACN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Accenture plc (NYSE:ACN) and shared Carillon Eagle Growth & Income Fund’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.