Here's What Lifted Robinhood Markets (HOOD) in Q2

ClearBridge Investments, an investment management company, released its “ClearBridge Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities significantly rallied in the second quarter, with the S&P 500 returning 10.9%. As the risk-on sentiment took hold, the benchmark Russell Midcap Growth Index advanced a market-leading 18.2%. Growth stocks led across market caps, outperforming their value counterparts. In this environment, the strategy outperformed the benchmark, driven by strong performance from the “mid cap plus” segment that the Strategy focuses on and solid stock selection in IT, industrials, and financials. 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 Growth Strategy highlighted stocks such as Robinhood Markets, Inc. (NASDAQ:HOOD). Robinhood Markets, Inc. (NASDAQ:HOOD) is a financial services platform that allows users to invest in stocks, exchange-traded funds (ETFs), American depository receipts, options, gold, and cryptocurrencies. The one-month return of Robinhood Markets, Inc. (NASDAQ:HOOD) was 11.43%, and its shares gained 411.46% of their value over the last 52 weeks. On September 16, 2025, Robinhood Markets, Inc. (NASDAQ:HOOD) stock closed at $117.38 per share, with a market capitalization of $104.313 billion.

ClearBridge Growth Strategy stated the following regarding Robinhood Markets, Inc. (NASDAQ:HOOD) in its second quarter 2025 investor letter:

"In financials, shares of disruptor Robinhood Markets, Inc. (NASDAQ:HOOD) more than doubled over the last three months, lifted by a more favorable environment and increased demand for cryptocurrencies as well as a flurry of new product introductions. While we remain long-term investors, the parabolic rise in share prices of several of our portfolio holdings, such as Robinhood, Palantir Technologies, Broadcom and CrowdStrike, allowed us to take profits and trim back exposures to these names."

Robinhood Markets, Inc. (NASDAQ:HOOD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 85 hedge fund portfolios held Robinhood Markets, Inc. (NASDAQ:HOOD) at the end of the second quarter, compared to 76 in the previous quarter. Robinhood Markets, Inc. (NASDAQ: HOOD) reported revenues of $989 million in Q2 2025, indicating a 45% year-over-year growth driven by strong business performance. While we acknowledge the potential of Robinhood Markets, Inc. (NASDAQ:HOOD) 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 Robinhood Markets, Inc. (NASDAQ:HOOD) and shared best performing financial stocks so far in 2025. Robinhood Markets, Inc. (NASDAQ:HOOD) contributed to Baron FinTech Fund's performance in Q2 2025. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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