ClearBridge Investments, a global equity manager, recently published second-quarter 2026 commentary for its “SMID Cap Growth Strategy”. A copy can be downloaded here. Small and mid-cap (SMID) growth equities experienced the strongest quarter in recent memory, with the Russell 2500 Growth Index rising 24.0%, driven by enthusiasm for AI infrastructure and higher-beta momentum stocks. The Strategy delivered double-digit returns in the quarter but trailed the soaring benchmark. Underperformance was driven by underexposure to top AI infrastructure stocks as well as weaknesses in healthcare and consumer discretionary sectors. The market leadership expanded beyond mega-cap technology, indicating potential opportunities from a broader cyclical recovery and AI adoption. In addition, you can check the Fund’s top five holdings to determine its best picks for 2026.
In its Q2 2026 investor letter, ClearBridge SMID Cap Growth Strategy highlighted Comfort Systems USA, Inc. (NYSE:FIX) as a leading contributor. Comfort Systems USA, Inc. (NYSE:FIX) is a leading mechanical and electrical installation, renovation, maintenance, repair, and replacement services provider to commercial, industrial, and institutional customers. On July 10, 2026, Comfort Systems USA, Inc. (NYSE:FIX) closed at $1,755.07 per share. The one-month return of Comfort Systems USA, Inc. (NYSE:FIX) was -10.04%, and its shares gained 223.43% over the past 52 weeks. Comfort Systems USA, Inc. (NYSE:FIX) has a market capitalization of $61.79 billion.
ClearBridge SMID Cap Growth Strategy stated the following regarding Comfort Systems USA, Inc. (NYSE:FIX) in its Q2 2026 investor update:
“The Strategy saw strength in long-standing investments outside of IT that offered participation in the AI infrastructure investment cycle alongside competitive differentiation. In industrials, Comfort Systems USA, Inc. (NYSE:FIX) benefited from demand for complex mechanical, electrical and modular construction capabilities tied to data center and manufacturing buildouts. We profitably exited the name during the quarter.”
Comfort Systems USA, Inc. (NYSE:FIX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 80 hedge fund portfolios held Comfort Systems USA, Inc. (NYSE:FIX) at the end of the first quarter, up from 72 in the previous quarter. Comfort Systems USA, Inc.’s (NYSE:FIX) EPS reached $10.51 in the first quarter of 2026, representing more than double that of Q1 2025. While we acknowledge the risk and potential of Comfort Systems USA, Inc. (NYSE:FIX) 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 Comfort Systems USA, Inc. (NYSE:FIX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Comfort Systems USA, Inc. (NYSE:FIX) and shared the list of best data center stocks to buy and hold for the next decade. In addition, please check out our hedge fund investor letters Q2 2026 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.
