ClearBridge Investments, an investment management company, released its “Clearbridge Global Value Improvers Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equity markets reported positive returns in Q2, driven by U.S. trade deals and expected fiscal stimulus in Europe, which countered tariff challenges and geopolitical tensions. Strong contributions from industrials and IT holdings led the strategy to outperform the benchmark MSCI World Value Index in the quarter. 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 Global Value Improvers Strategy highlighted stocks such as Microchip Technology Incorporated (NASDAQ:MCHP). Microchip Technology Incorporated (NASDAQ:MCHP) manufactures and distributes smart, connected, and secure embedded control solutions. The one-month return of Microchip Technology Incorporated (NASDAQ:MCHP) was 0.32%, and its shares lost 14.87% of their value over the last 52 weeks. On October 2, 2025, Microchip Technology Incorporated (NASDAQ:MCHP) stock closed at $66.13 per share, with a market capitalization of $35.689 billion.
Clearbridge Global Value Improvers Strategy stated the following regarding Microchip Technology Incorporated (NASDAQ:MCHP) in its second quarter 2025 investor letter:
"Our IT holdings also generated positive performance, led by U.S. based Microchip Technology Incorporated (NASDAQ:MCHP). Microchip, which manufactures microcontrollers and microprocessors for a wide variety of end uses, saw its share price rise after releasing fourth-quarter fiscal results that exceeded analyst expectations and raising its first-quarter revenue target due to strong bookings and inventory reduction as management believes its end markets have reached a cyclical bottom."
Microchip Technology Incorporated (NASDAQ:MCHP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 54 hedge fund portfolios held Microchip Technology Incorporated (NASDAQ:MCHP) at the end of the second quarter, down from 56 in the previous quarter. While we acknowledge the potential of Microchip Technology Incorporated (NASDAQ:MCHP) 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 Microchip Technology Incorporated (NASDAQ:MCHP) and shared the list of best semiconductor stocks with huge upside potential. Madison Mid Cap Fund benefited from Microchip Technology Incorporated's (NASDAQ:MCHP) strong 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.
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Disclosure: None. This article is originally published at Insider Monkey.