ClearBridge Investments, a global equity manager, recently published second-quarter 2026 commentary for its "Large Cap Growth Strategy". A copy of the letter can be downloaded here. Equity markets experienced a significant rally in the second quarter, fueled by robust earnings and increasing optimism regarding easing geopolitical tensions. The S&P 500 Index climbed 15.2% during this period, while the Russell 1000 Growth Index returned 16.7%, despite some volatility in sentiment towards AI. The reconstitution of Russell U.S. Indexes and the SpaceX IPO had a notable impact on large-cap growth benchmarks this quarter. The Strategy transitioned from a diversified to a non-diversified approach in the quarter, allowing for greater flexibility in portfolio management. Against this backdrop, the Strategy underperformed its benchmark, driven by stock selection and sector allocation. In addition, please check the Strategy's top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, ClearBridge Large Cap Growth Strategy highlighted Intuit Inc. (NASDAQ:INTU). Intuit Inc. (NASDAQ:INTU) is a financial software company offering products and services for financial management, payments, capital, compliance, and marketing. On July 8, 2026, Intuit Inc. (NASDAQ:INTU) closed at $272.10 per share. One-month return of Intuit Inc. (NASDAQ:INTU) was -2.17%, and its shares lost 63.78% over the past 52 weeks. Intuit Inc. (NASDAQ:INTU) has a market capitalization of $74.43 billion.
ClearBridge Large Cap Growth Strategy stated the following regarding Intuit Inc. (NASDAQ:INTU) in its Q2 2026 investor update:
"The Strategy also exited a position in Intuit Inc. (NASDAQ:INTU) due to growing concerns that AI could commoditize parts of its tax business. In order to maintain competitiveness, management appears to recognize the need to reinvest in the TurboTax platform, which we believe could weigh on forward guidance. We also see rising competition to Intuit's QuickBooks small business finance software platform from both traditional and AI peers. Our sale follows similar logic applied to other software companies over the past few years: exiting companies with weak or weakening core businesses that do not have a clear AI strategy to compete in an increasingly complex environment."
Intuit Inc. (NASDAQ:INTU) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 92 hedge fund portfolios held Intuit Inc. (NASDAQ:INTU) at the end of the first quarter, compared to 91 in the previous quarter. In the third quarter of fiscal 2026, Intuit Inc. (NASDAQ:INTU) reported revenue of $8.6 billion, reflecting a 10% year-over-year growth. While we acknowledge the potential of Intuit Inc. (NASDAQ:INTU) 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.