Here’s Why Macquarie Large Cap Growth Fund Sold Equinix (EQIX) in Q3

Macquarie Asset Management, an investment management company, released its “Macquarie Large Cap Growth Fund” investor letter for the third quarter of 2025. A copy of the letter can be downloaded here. Equity indexes again posted record gains in the third quarter of 2025, with AI-themed stocks leading the market. AI Stocks led around 75% of the market returns in the quarter. In this environment, the fund delivered positive returns in the quarter but lagged behind the Russell 1000 Growth Index benchmark. The fund’s underperformance was driven by an unfavorable market environment and several missteps. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Macquarie Large Cap Growth Fund highlighted stocks such as Equinix, Inc. (NASDAQ:EQIX). Equinix, Inc. (NASDAQ:EQIX) is a digital infrastructure company. The one-month return of Equinix, Inc. (NASDAQ:EQIX) is 4.96%, and its shares have lost 7.13% of their value over the last 52 weeks. On October 14, 2025, Equinix, Inc. (NASDAQ:EQIX) stock closed at $817.42 per share, with a market capitalization of $79.996 billion.

Macquarie Large Cap Growth Fund stated the following regarding Equinix, Inc. (NASDAQ:EQIX) in its third quarter 2025 investor letter:

“Equinix, Inc. (NASDAQ:EQIX), a data center operator, was eliminated from the portfolio. The company has unique assets in urban areas critical for reducing latency, especially as AI applications become more prevalent. However, as new locations open in second- and third-tier cities, Equinix has not been able to monetize these assets as we had expected. We believe there will be a better opportunity to own the stock in the future.”

Equinix's Rising Cash Flow Positions It as a Next Generation Dividend Aristocrat

Equinix, Inc. (NASDAQ:EQIX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 66 hedge fund portfolios held Equinix, Inc. (NASDAQ:EQIX) at the end of the second quarter, compared to 70 in the previous quarter. Equinix, Inc. (NASDAQ:EQIX) reported revenues of $2.26 billion in Q2 2025, representing an increase of 5% year-over-year. While we acknowledge the risk and potential of Equinix, Inc. (NASDAQ:EQIX) 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 Equinix, Inc. (NASDAQ:EQIX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Equinix, Inc. (NASDAQ:EQIX) and shared the list of best real estate stocks to invest in. 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.