ClearBridge Investments, an investment management company, published its Q3 2025 investor letter “ClearBridge Large Cap Growth Strategy.” A copy of the letter can be downloaded here. Stocks continued their upward trajectory in the third quarter, with the S&P 500 index rising 8.1% and the tech-heavy Nasdaq Composite rising 11.2% to hit all-time highs. Investor optimism was boosted by favorable tariff outcomes, July’s One Big Beautiful Bill, expected interest rate cuts and strong corporate earnings, particularly in technology and the Magnificent Seven. The benchmark Russell 1000 Growth Index rose 10.5% during the quarter. The strategy delivered strong absolute performance in the quarter, but underperformed the benchmark. Underexposure to perceived winners in AI and ownership of several names considered by investors to be losers in AI led to the underperformance. Plus, check out the fund’s top five holdings to learn your best picks in 2025.
In its Q3 2025 investor letter, ClearBridge Large Cap Growth Strategy highlighted stocks like Union Pacific Corporation (NYSE:UNP). Union Pacific Corporation (NYSE:UNP) is a US-based railroad company. Union Pacific Corporation (NYSE:UNP)’s monthly performance was 7.48% and its stock lost 0.86% of its value over the past 52 weeks. On October 3, 2025, Union Pacific Corporation (NYSE:UNP) stock closed at $236.80 per share, with a market capitalization of $140.452 million.
ClearBridge Large Cap Growth Strategy stated the following regarding Union Pacific Corporation (NYSE:UNP) in its Q3 2025 investor letter:
“The purchase was partially financed with proceeds from the sale of Union Pacific Corporation (NYSE:UNP). We believe the merger between Union Pacific and Norfolk Southern will create a surplus on the freight rail operator for some time, limiting growth potential. Without a stronger freight environment, an area that has been in a multi-year recession, we do not expect the combined company to benefit as much from an expected industrial recovery.”
Union Pacific Corporation (NYSE:UNP) isn’t on our list of the 30 most popular stocks among hedge funds. According to our database, 89 hedge fund portfolios held Union Pacific Corporation (NYSE:UNP) at the end of the second quarter, up from 85 in the previous quarter. While we recognize the potential of UNION PACIFIC CORPORATION (NYSE:UNP) as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.