Here’s Why Teledyne Technologies (TDY) Stock Weighed on ClearBridge Mid Cap Strategy’s Returns

ClearBridge Investments, an investment management company, released its “ClearBridge Mid Cap Strategy” Q4 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the ClearBridge Mid Cap Strategy reported underperformance versus the Russell Midcap Index, which returned 0.16% during the period, as narrow market leadership and sentiment-driven trading weighed on results. Weakness in information technology and real estate holdings pressured returns, while gains in select consumer discretionary stocks provided partial support. The firm noted that elevated dispersion and uneven earnings reactions continued to shape mid-cap equity performance during the quarter. Looking ahead, the portfolio management team expressed cautious optimism, noting that improving clarity around policy, interest rates, and business investment could create a more favorable backdrop for active stock selection, particularly as valuation gaps widen and fundamentals across many mid-cap companies continue to strengthen. In addition, please check the fund’s top five holdings to know its best picks in 2025.

Teledyne Technologies Inc. (NYSE:TDY) is a diversified industrial technology company providing advanced instrumentation, digital imaging, aerospace, and defense solutions to mission-critical end markets. The one-month return of Teledyne Technologies Inc. (NYSE:TDY) was 16.57% while its shares have traded between $419.00 to $630.76 over the last 52 weeks. On January 26, 2026, Teledyne Technologies Inc. (NYSE:TDY) stock closed at approximately $607.57 per share, with a market capitalization of about $28.35 billion.

ClearBridge Investments, an investment management company, stated the following regarding Teledyne Technologies Inc. (NYSE:TDY) in its “ClearBridge Mid Cap Strategy” Q4 2025 investor letter:

“IT detracted as investor sentiment toward software businesses weakened amid heightened sensitivity to earnings expectations and concerns around AI-driven disruption. Teledyne Technologies Inc. (NYSE:TDY), a diversified industrial technology company, and Bentley Systems, an infrastructure-focused software provider, declined as expectations for near-term acceleration were pushed out.”

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Teledyne Technologies Inc. (NYSE:TDY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Teledyne Technologies Inc. (NYSE:TDY) at the end of the third quarter, which was 51 in the previous quarter. While we acknowledge the risk and potential of Teledyne Technologies Inc. (NYSE:TDY) 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 Teledyne Technologies Inc. (NYSE:TDY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Teledyne Technologies Inc. (NYSE:TDY) and shared the list of best lidar stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.