Overview
- ClearBridge said in its Q2 2026 investor letter that its SMID Cap Growth strategy delivered double-digit absolute gains but materially trailed the Russell 2500 Growth Index during the quarter.
- The firm disclosed Monday that it added industrial names to the SMID portfolio to gain exposure to rising electricity needs for AI compute and to secular defense spending, explicitly naming ATI as a new holding.
- ClearBridge also added Fabrinet and highlighted other industrials and energy names such as Bloom Energy and Comfort Systems to participate in AI data-center buildouts and alternative power demand.
- ATI closed at about $187 on July 10, has roughly a $25.5 billion market cap, posted $1.15 billion in revenue for Q1 2026 with 6% aerospace and defense growth, and saw modest hedge-fund ownership rise in Q1.
- The shift follows a broader firm-level risk tilt earlier in May when ClearBridge reclassified a large-cap strategy to non-diversified, and it illustrates how active managers can lag when benchmark leadership concentrates in a few top AI infrastructure stocks.