Group 1: ClearBridge Investments and Mid Cap Strategy - ClearBridge Mid Cap Strategy underperformed against the Russell Midcap Index, which returned 0.16% during Q4 2025 due to narrow market leadership and sentiment-driven trading [1] - Weakness in information technology and real estate holdings negatively impacted returns, while gains in select consumer discretionary stocks provided partial support [1] - The portfolio management team expressed cautious optimism for the future, citing improving clarity around policy, interest rates, and business investment as potential positive factors for active stock selection [1] Group 2: DraftKings Inc. Overview - DraftKings Inc. operates a digital sports betting and online gaming platform, with a one-month return of -12.51% and shares trading between $26.23 to $53.61 over the last 52 weeks [2] - As of January 26, 2026, DraftKings stock closed at approximately $30.58 per share, with a market capitalization of about $15.15 billion [2] Group 3: ClearBridge's Position on DraftKings Inc. - ClearBridge Investments exited its position in DraftKings Inc. due to rising competitive risks from prediction markets, which altered the conviction in the company's medium-term business model [3] - DraftKings is not among the 30 Most Popular Stocks Among Hedge Funds, with 68 hedge fund portfolios holding the stock at the end of Q3, an increase from 66 in the previous quarter [4] - The firm believes that some AI stocks present greater potential for higher returns in a shorter time frame compared to DraftKings [4]