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 Insulet Corporation (NASDAQ:PODD). Insulet Corporation (NASDAQ:PODD) is an American medical device company known for its Omnipod platform, an insulin delivery system for people with insulin-dependent diabetes. On July 10, 2026, Insulet Corporation (NASDAQ:PODD) closed at $161.28 per share. One-month return of Insulet Corporation (NASDAQ:PODD) was 8.87%, and its shares lost 44.77% over the past 52 weeks. Insulet Corporation (NASDAQ:PODD) has a market capitalization of $11.17 billion.
ClearBridge SMID Cap Growth Strategy stated the following regarding Insulet Corporation (NASDAQ:PODD) in its Q2 2026 investor update:
“Within health care, weakness in provider and select medical technology holdings offset otherwise solid contributions from biotechnology and life sciences tools holdings. Insulet Corporation (NASDAQ:PODD), the maker of insulin patch pumps, also detracted amid broad medtech weakness, minor product recall and quality issues and rising concerns around potential future competition.”
Insulet Corporation (NASDAQ:PODD) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 55 hedge fund portfolios held Insulet Corporation (NASDAQ:PODD) at the end of the first quarter, compared to 60 in the previous quarter. In Q1 2026, Insulet Corporation (NASDAQ:PODD) generated revenue of $762 million, an increase of 34% on a reported basis and 30% on a constant currency basis.While we acknowledge the risk and potential of Insulet Corporation (NASDAQ:PODD) 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 Insulet Corporation (NASDAQ:PODD) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Insulet Corporation (NASDAQ:PODD) and shared the list of best innovative healthcare stocks to buy. 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.
