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 The Ensign Group, Inc. (NASDAQ:ENSG). The Ensign Group, Inc. (NASDAQ:ENSG) is a healthcare services company that provides skilled nursing, senior living, and rehabilitative services. On July 10, 2026, The Ensign Group, Inc. (NASDAQ:ENSG) closed at $168.59 per share. One-month return of The Ensign Group, Inc. (NASDAQ:ENSG) was 11.86%, and its shares gained 15.67% over the past 52 weeks. The Ensign Group, Inc. (NASDAQ:ENSG) has a market capitalization of $9.85 billion.
ClearBridge SMID Cap Growth Strategy stated the following regarding The Ensign Group, Inc. (NASDAQ:ENSG) 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. The Ensign Group, Inc. (NASDAQ:ENSG), a skilled nursing facility operator, was pressured after regulatory and short-seller-related concerns emerged, reducing visibility and causing us to exit the position.”
The Ensign Group, Inc. (NASDAQ:ENSG) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 37 hedge fund portfolios held The Ensign Group, Inc. (NASDAQ:ENSG) at the end of the first quarter, up from 35 in the previous quarter. While we acknowledge the risk and potential of The Ensign Group, Inc. (NASDAQ:ENSG) 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 The Ensign Group, Inc. (NASDAQ:ENSG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered The Ensign Group, Inc. (NASDAQ:ENSG) and shared the list of best medical care facilities stocks to buy according to analysts. 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.
