ClearBridge Investments, an investment management company, released its “ClearBridge Select Strategy” Q4 2025 investor letter. A copy of the letter can be downloaded here. In the fourth quarter of 2025, U.S. equities demonstrated a resilient yet volatile performance, with major indices close to near all-time highs while significant shifts occurred later. Momentum-driven themes, particularly those related to artificial intelligence (AI), technology, and cryptocurrencies, persisted into the early part of the quarter but subsequently reversed. This reversal led to increased volatility and greater stock-level dispersion. As volatility rose, investors began prioritizing companies with robust fundamentals, innovative growth potential, and strong operational execution. The S&P 500 Index posted a return of 2.7% for the quarter, while the Russell 3000 Index gained 2.4%. Growth stocks trailed their value counterparts, as the enthusiasm surrounding AI softened and concerns emerged regarding the return on AI-related investments. The strategy lagged behind the benchmark in the quarter due to a shift towards quality, with a preference for larger-cap companies, with notable weaknesses in the health care and technology sectors. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, ClearBridge Select Strategy highlighted stocks like Wingstop Inc. (NASDAQ:WING). Wingstop Inc. (NASDAQ:WING) is a fast casual restaurant operator under the Wingstop brand headquartered in Dallas, Texas. On April 2, 2026, Wingstop Inc. (NASDAQ:WING) closed at $152.51 per share. One-month return of Wingstop Inc. (NASDAQ:WING) was -33.45%, and its shares lost 34.36% over the past 52 weeks. Wingstop Inc. (NASDAQ:WING) has a market capitalization of $4.24 billion.
ClearBridge Select Strategy stated the following regarding Wingstop Inc. (NASDAQ:WING) in its fourth quarter 2025 investor letter:
“We initiated six new common stock positions in the quarter while exiting 12 others. One of the largest additions was Wingstop Inc. (NASDAQ:WING), which franchises and operates restaurants offering classic wings, boneless wings and tenders. With best-in-class unit economics driving strong returns for franchisees, the company is leveraging robust unit growth along with menu innovation and innovative technology offering, including a new kitchen display system to aid speed of service to fuel meaningful cash flow compounding.”
Wingstop Inc. (NASDAQ:WING) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 49 hedge fund portfolios held Wingstop Inc. (NASDAQ:WING) at the end of the fourth quarter, up from 39 in the previous quarter. While we acknowledge the risk and potential of Wingstop Inc. (NASDAQ:WING) 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 Wingstop Inc. (NASDAQ:WING) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Wingstop Inc. (NASDAQ:WING) and shared the list of best restaurant stocks to buy for growth in 2026. In addition, please check out our hedge fund investor letters Q4 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.
