ClearBridge Investmentsa global equity manager, recently published Q1 2026 commentary for its “Mid-Cap Strategy.” A copy of the letter can be downloaded here. Mid-cap stocks showed strong performance in the first quarter, with the Russell Midcap Index rising 1.3%, outperforming both large- and small-cap stocks. By contrast, large-cap stocks fell 4.2%, while small-cap stocks rose just 0.9%; This dynamic suggested an expansion of market leadership. While investor concerns over the US-Israel-Iran conflict weighed on mid-cap stocks, their performance was more focused on company fundamentals and sector trends. However, the ClearBridge Mid Cap strategy underperformed its benchmark due to challenges in the IT, healthcare and consumer discretionary sectors. The strategy focuses on the consumer discretionary sector, acquiring companies that can perform in a variety of circumstances while adapting to changing environments. Review the strategy’s top five holdings to learn about its key 2026 picks.
In its Q1 2026 investor letter, ClearBridge Mid Cap Strategy highlighted stocks like Expedia Group, Inc. (NASDAQ:EXPE). Expedia Group, Inc. (NASDAQ:EXPE) is an American online travel company that operates through the B2C, B2B, and trivago segments. On April 9, 2026, shares of Expedia Group, Inc. (NASDAQ:EXPE) closed at $230.26 per share. Expedia Group, Inc. (NASDAQ:EXPE)’s monthly performance was 0.27% and its shares gained 52.12% in the last 52 weeks. Expedia Group, Inc. (NASDAQ:EXPE) has a market capitalization of $28.21 billion.
ClearBridge Mid Cap Strategy stated the following regarding Expedia Group, Inc. (NASDAQ:EXPE) in its Q1 2026 investor letter:
“Meanwhile, we exit our position in Expedia Group, Inc. (NASDAQ:EXPE) following a period of strong share price appreciation, as valuation became more balanced and the escalation of the conflict with Iran introduced greater uncertainty around the near-term travel demand outlook.”
Expedia Group, Inc. (NASDAQ:EXPE) isn’t on our list of the 40 most popular stocks among hedge funds heading into 2026. According to our database, 70 hedge fund portfolios owned Expedia Group, Inc. (NASDAQ:EXPE) at the end of the fourth quarter, up from 63 in the prior quarter. While we recognize the potential of Expedia Group, Inc. (NASDAQ:EXPE) 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.