ClearBridge Investments, an investment management company, released its “ClearBridge Growth Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities reported a strong but volatile performance in the fourth quarter, with the S&P 500 Index returning 2.7% while the benchmark Russell Midcap Growth Index declined 3.7%. In this environment, a balanced, highly active share approach resulted in Strategy’s third consecutive quarter of outperformance, capturing early momentum while providing downside protection during rising volatility towards the end of the period. The strategy maintained its long-term investment philosophy of disciplined portfolio management and opportunistic capital allocation. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, ClearBridge Growth Strategy highlighted stocks such as XPO, Inc. (NYSE:XPO). XPO, Inc. (NYSE:XPO) is a freight transportation services company. On January 9, 2026, XPO, Inc. (NYSE:XPO) stock closed at $146.73 per share. One-month return of XPO, Inc. (NYSE:XPO) was -1.56%, and its shares gained 9.34% of their value over the last 52 weeks. XPO, Inc. (NYSE:XPO) has a market capitalization of $17.279 billion.
ClearBridge Growth Strategy stated the following regarding XPO, Inc. (NYSE:XPO) in its fourth quarter 2025 investor letter:
“Additionally, we looked for opportunities to elevate the quality of the portfolio. Within industrials, for instance, we rotated our exposure in the fourth quarter from Old Dominion Freight Line, a leading less than-truckload (LTL) carrier, into XPO, Inc. (NYSE:XPO), the fourth-largest LTL provider in North America. We remain mindful of the still-challenging macro environment for freight and see greater idiosyncratic growth potential at XPO. Under new leadership, the company is improving service levels, pricing discipline and margins, leaving more room for outperformance should macro malaise persist.”
XPO, Inc. (NYSE:XPO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 40 hedge fund portfolios held XPO, Inc. (NYSE:XPO) at the end of the third quarter, compared to 48 in the previous quarter. While we acknowledge the potential of XPO, Inc. (NYSE:XPO) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
