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 ATI Inc. (NYSE:ATI). ATI Inc. (NYSE:ATI) is a leading manufacturer of specialty materials and complex components, including titanium and titanium-based alloys, nickel- and cobalt-based alloys and superalloys, advanced powder alloys, and other specialty materials. On July 10, 2026, ATI Inc. (NYSE:ATI) stock closed at $187.04 per share. One-month return of ATI Inc. (NYSE:ATI) was -4.48%, and its shares gained 106.47% over the past 52 weeks. ATI Inc. (NYSE:ATI) has a market capitalization of $25.53 billion.
ClearBridge SMID Cap Growth Strategy stated the following regarding ATI Inc. (NYSE:ATI) in its Q2 2026 investor update:
“We added several new positions in the industrials sector indexed to AI power demands and secular growth in defense spending. ATI Inc. (NYSE:ATI) is a vertically integrated specialty materials provider with strong pricing power exposed to the attractive growth dynamics in many subsegments of aerospace and defense.”
ATI Inc. (NYSE:ATI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 69 hedge fund portfolios held ATI Inc. (NYSE:ATI) at the end of the first quarter, up from 62 in the previous quarter. ATI Inc. (NYSE:ATI) posted $1.15 billion revenue in Q1 2026, driven by 6% growth in aerospace and defense. While we acknowledge the risk and potential of ATI Inc. (NYSE:ATI) 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 ATI Inc. (NYSE:ATI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered ATI Inc. (NYSE:ATI) and shared the list of best fusion energy development 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.
