Strong Performance Lifted Caris Life Sciences (CAI) in Q2

ClearBridge Investments, an investment management company, released its “ClearBridge Select Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equities strongly rebounded in the second quarter. The S&P 500 Index returned 10.9%, and the benchmark Russell 3000 Index advanced 11.0%, as risk-on sentiment took hold following the pause in tariff implementation. The strategy outperformed the benchmark in the quarter, driven by the strength in portfolio construction across companies and sectors with distinct growth drivers. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, ClearBridge Select Strategy highlighted stocks such as Caris Life Sciences, Inc. (NASDAQ:CAI). Caris Life Sciences, Inc. (NASDAQ:CAI) is an artificial intelligence-driven TechBio company. The one-month return of Caris Life Sciences, Inc. (NASDAQ:CAI) was -12.04%, and its shares gained 19.75% of their value over the three months. On September 17, 2025, Caris Life Sciences, Inc. (NASDAQ:CAI) stock closed at $33.53 per share, with a market capitalization of $9.431 billion.

ClearBridge Select Strategy stated the following regarding Caris Life Sciences, Inc. (NASDAQ:CAI) in its second quarter 2025 investor letter:

“The Strategy also saw strong performance from Caris Life Sciences, Inc. (NASDAQ:CAI), an AI-driven company in cancer care and genetic profiling. We have owned the company for several years in the private investment area of the strategy. Caris went public late in the quarter and offers a differentiated molecular profiling services to biopharmaceutical companies using machine learning algorithms.”

Caris Life Sciences, Inc. (NASDAQ:CAI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 42 hedge fund portfolios held Caris Life Sciences, Inc. (NASDAQ:CAI) at the end of the second quarter, compared to 0 in the previous quarter. While we acknowledge the risk and potential of Caris Life Sciences, Inc. (NASDAQ:CAI) 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 Caris Life Sciences, Inc. (NASDAQ:CAI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Caris Life Sciences, Inc. (NASDAQ:CAI) and shared the list of best performing biotech stocks so far in 2025. In addition, please check out our hedge fund investor letters Q2 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.