ClearBridge Global Value Improvers Strategy Exits Uber (UBER) in Q2 2025
ClearBridge Investments has released its second-quarter 2025 investor letter for the “Clearbridge Global Value Improvers Strategy”, revealing a strategic shift. The letter, which can be downloaded here, highlights the fund's performance and key portfolio changes, including the decision to exit Uber Technologies, Inc. (NYSE:UBER). While global equity markets saw positive returns in Q2, driven by U.S. trade deals and European fiscal stimulus, ClearBridge's strategy outperformed the MSCI World Value Index, thanks to strong contributions from industrials and IT holdings.
Uber's Performance and ClearBridge's Rationale
The letter mentions that Uber Technologies, Inc. (NYSE:UBER) operates through Mobility, Delivery, and Freight segments. Uber’s one-month return was 5.03%, and its shares experienced a gain of 32.45% over the previous 52 weeks. On October 2, 2025, Uber Technologies, Inc. (NYSE:UBER) closed at $96.61 per share, boasting a market capitalization of $201.472 billion.
Despite Uber's strong fundamentals, ClearBridge decided to exit its position. According to the investor letter, "Portfolio activity was relatively calm in the quarter with only two changes: exiting Uber Technologies, Inc. (NYSE:UBER) and adding Corcept Therapeutics. Uber, the world’s leading rideshare platform, has strong fundamentals and a free cash flow inflection underway — catalysts that we believe the market has recognized. Accordingly, recent price appreciation has reduced our assessment of the company’s upside potential, and concerns over the rollout of autonomous self-driving taxis by competitors led us to step away in favor of other opportunities."
Hedge Fund Interest and Alternative Investments
While Uber Technologies, Inc. (NYSE:UBER) remains a popular stock among hedge funds, ClearBridge believes other investment opportunities offer greater potential. Uber holds the 10th position on a list of 30 Most Popular Stocks Among Hedge Funds. Data shows that 152 hedge fund portfolios held Uber Technologies, Inc. (NYSE:UBER) at the end of the second quarter, an increase from 145 in the previous quarter. ClearBridge suggests that certain AI stocks may present a more compelling risk-reward profile, especially in the context of Trump-era tariffs and the onshoring trend.
Key Takeaways
- ClearBridge Global Value Improvers Strategy exited its position in Uber Technologies, Inc. (NYSE:UBER) in Q2 2025.
- The decision was based on recent price appreciation limiting upside potential and concerns about autonomous vehicle competition.
- ClearBridge sees potentially better opportunities in other sectors, including certain AI stocks.
- Despite the exit, Uber remains a popular holding among hedge funds.
