ClearBridge Mid Cap Growth Strategy Sold its Investment in Deckers Outdoor (DECK)

ClearBridge Investments, an investment management company, released its “ClearBridge Mid Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy reported modest gains in the challenging environment, driven by monetary policy shifts, stabilizing earnings, and improving investor sentiment.  However, the strategy outperformed the Russell Midcap Growth Index, which returned 2.8%. The firm believes that the Strategy is well-positioned to benefit from its fundamental, bottom-up philosophy even though near-term volatility exists. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, ClearBridge Mid Cap Growth Strategy highlighted stocks such as Deckers Outdoor Corporation (NYSE:DECK). Deckers Outdoor Corporation (NYSE:DECK) is a footwear, apparel, and accessories company for everyday casual lifestyle and high-performance activities. The one-month return of Deckers Outdoor Corporation (NYSE:DECK) was -16.58%, and its shares lost 38.70% of their value over the last 52 weeks. On October 9, 2025, Deckers Outdoor Corporation (NYSE:DECK) stock closed at $98.85 per share, with a market capitalization of $14.664 billion.

ClearBridge Mid Cap Growth Strategy stated the following regarding Deckers Outdoor Corporation (NYSE:DECK) in its third quarter 2025 investor letter:

"On the sell side, we exited our position in Deckers Outdoor Corporation (NYSE:DECK) in the consumer discretionary sector. While the company has historically executed well across its footwear brands, including HOKA and UGG, increasing competitive pressures in the sneaker market led us to search for a more balanced risk-reward profile elsewhere."

Deckers Outdoor Corporation (NYSE:DECK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 59 hedge fund portfolios held Deckers Outdoor Corporation (NYSE:DECK) at the end of the second quarter, compared to 63 in the previous quarter.  In the fiscal first quarter of 2026, Deckers Outdoor Corporation's (NYSE:DECK) revenue growing 17% versus last year to $965 million. While we acknowledge the potential of Deckers Outdoor Corporation (NYSE:DECK) 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 Deckers Outdoor Corporation (NYSE:DECK) and shared the list of safest stocks to invest in. In addition, please check out our hedge fund investor letters Q3 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.