Soumya Eswaran
2 min read
ClearBridge Investments, an investment management company, released its “ClearBridge Large Cap Value Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The S&P 500 Index declined by -4.3% in Q1 2025 due to a tariff war and a shift away from AI-related tech stocks. Amid the tech-led sell-off, the benchmark, the Russell 1000 Value Index, outperformed its growth counterpart in the quarter. Against this backdrop, the strategy underperformed the benchmark in Q1. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, ClearBridge Large Cap Value Strategy highlighted stocks such as RTX Corporation (NYSE:RTX). RTX Corporation (NYSE:RTX) is an aerospace and defense company. The one-month return of RTX Corporation (NYSE:RTX) was 20.62%, and its shares gained 30.13% of their value over the last 52 weeks. On May 19, 2025, RTX Corporation (NYSE:RTX) stock closed at $137.20 per share with a market capitalization of $183.292 billion.
ClearBridge Large Cap Value Strategy stated the following regarding RTX Corporation (NYSE:RTX) in its Q1 2025 investor letter:
"In industrials, defense names RTX Corporation (NYSE:RTX) and Northrop Grumman led performance as geopolitical tensions remained elevated. Both companies have moved away from fixed-price contracts, and as those contracts have diminished as parts of their business, should see margin expansion over the next few years. European countries have also pledged to increase their spending on defense, which, given the lack of capacity available for European defense companies, should benefit U.S. defense primes."
An aerial view of a commercial jetliner in flight, its airframe glinting in the sun.
RTX Corporation (NYSE:RTX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 80 hedge fund portfolios held RTX Corporation (NYSE:RTX) at the end of the fourth quarter which was 72 in the previous quarter. While we acknowledge the potential of RTX Corporation (NYSE:RTX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In another article, we covered RTX Corporation (NYSE:RTX) and shared Jim Cramer’s thoughts on a selection of stocks. RTX Corporation (NYSE:RTX) contributed to Longleaf Partners Fund's performance in the first quarter. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.
