ClearBridge Investments, an funding administration firm, launched its “ClearBridge Massive Cap Development Technique” third-quarter 2025 investor letter. A replica of the letter could be downloaded right here. Equities continued their upward journey within the third quarter with the S&P 500 Index surging 8.1% and tech-heavy Nasdaq Composite rising 11.2% to report highs. Investor optimism was pushed by favorable tariff outcomes, the One Large Lovely Invoice in July, anticipated rate of interest cuts, and powerful company earnings, notably in expertise and the Magnificent Seven. The benchmark Russell 1000 Development Index rose 10.5% for the quarter. The technique delivered stable absolute efficiency within the quarter however underperformed the benchmark. Underexposure to perceived AI winners and holding a number of names deemed by buyers to be AI losers led to the underperformance. As well as, please test the fund’s high 5 holdings to know its finest picks in 2025.
In its third-quarter 2025 investor letter, ClearBridge Massive Cap Development Technique highlighted shares akin to Datadog, Inc. (NASDAQ:DDOG). Datadog, Inc. (NASDAQ:DDOG) is an observability and safety platform for cloud purposes. The one-month return of Datadog, Inc. (NASDAQ:DDOG) was 5.76%, and its shares gained 22.53% of their worth during the last 52 weeks. On October 3, 2025, Datadog, Inc. (NASDAQ:DDOG) inventory closed at $151.82 per share, with a market capitalization of $52.946 billion.
ClearBridge Massive Cap Development Technique said the next relating to Datadog, Inc. (NASDAQ:DDOG) in its third quarter 2025 investor letter:
“Throughout the quarter, the Technique initiated new positions in infrastructure software program suppliers Oracle and Datadog, Inc. (NASDAQ:DDOG) and added to customized silicon developer Broadcom. Datadog operates a monitoring, observability and information safety platform for cloud purposes. Observability is a big and rising finish market with penetration rising as use and complexity of purposes develop, requiring extra efficiency monitoring. Datadog is a pacesetter in cloud utility monitoring, providing ease of use, breadth and scalability superior to its opponents. We imagine massive language mannequin (LLM) observability, a quickly rising market as a result of acceleration of Gen AI workloads, creates a brand new vector for progress not mirrored in basic estimates. Datadog’s mission crucial providing and speedy innovation ought to assist engaging >20% income progress with a lovely valuation as the corporate additional scales margin and money circulation.”
Datadog, Inc. (NASDAQ:DDOG) just isn’t on our checklist of 30 Most Well-liked Shares Amongst Hedge Funds. Based on our database, 103 hedge fund portfolios held Datadog, Inc. (NASDAQ:DDOG) on the finish of the second quarter, in comparison with 84 within the earlier quarter. Datadog, Inc. (NASDAQ:DDOG) reported income of $827 million within the second quarter of 2025, marking a rise of 28% year-over-year. Whereas we acknowledge the potential of DATADOG, INC. (NASDAQ:DDOG) as an funding, we imagine sure AI shares supply higher upside potential and carry much less draw back danger. If you happen to’re in search of a particularly undervalued AI inventory that additionally stands to profit considerably from Trump-era tariffs and the onshoring development, see our free report on the finest short-term AI inventory.
