Tradeweb Markets (TW) Shares Pulled Back Despite Solid Fundamentals

ClearBridge Investments, an investment management company, released its “ClearBridge Mid Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Following the soft start to the year, the midcap fund rebounded in the second quarter, driven by demand for AI and a low-quality rally, which enabled the growth stocks to overcome the tariff-led uncertainty. The strategy failed to outpace the benchmark, despite strong absolute returns, due to limited exposure to several of the rally’s leading participants. However, the firm is optimistic about the ability of the mid-cap growth universe to offer attractive long-term compounders. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, ClearBridge Mid Cap Growth Strategy highlighted stocks such as Tradeweb Markets Inc. (NASDAQ:TW). Tradeweb Markets Inc. (NASDAQ:TW) is a global financial technology company that builds and operates electronic marketplaces. The one-month return of Tradeweb Markets Inc. (NASDAQ:TW) was -9.00%, and its shares gained 7.54% of their value over the last 52 weeks. On August 27, 2025, Tradeweb Markets Inc. (NASDAQ:TW) stock closed at $126.08 per share, with a market capitalization of $27.542 billion.

ClearBridge Mid Cap Growth Strategy stated the following regarding Tradeweb Markets Inc. (NASDAQ:TW) in its second quarter 2025 investor letter:

"Stock selection in the financials sector also weighed on performance, largely stemming from declines from marketplace operator Tradeweb Markets Inc. (NASDAQ:TW). Tradeweb, one of our top performers in the first quarter, took a breather as investor enthusiasm and growth expectations outpaced fundamentals. Despite reporting strong first-quarter earnings, the company’s performance did not meet the growth and profitability improvements that many investors had priced into the stock, resulting in a share price pullback even as the business remains solid."

Tradeweb Markets Inc. (NASDAQ:TW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Tradeweb Markets Inc. (NASDAQ:TW) at the end of the second quarter, which was 35 in the previous quarter. In the second quarter of 2025, Tradeweb Markets Inc. (NASDAQ:TW) reported record revenues of $513 million that were up 26.7% year-on-year on a reported basis and 24.7% on a constant currency basis. While we acknowledge the potential of Tradeweb Markets Inc. (NASDAQ:TW) 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.

In another article, we covered Tradeweb Markets Inc. (NASDAQ:TW) and shared Artisan Mid Cap Fund's views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.