ADBE - ClearBridge All Cap Growth Strategy Q1 2024 Commentary

2024-04-27 10:00:00 ET

Summary

• ClearBridge is a leading global asset manager committed to active management. Research-based stock selection guides our investment approach, with our strategies reflecting the highest-conviction ideas of our portfolio managers.
• The Strategy underperformed primarily due to weakness among several health care holdings that failed to participate in the mega cap led momentum rally.
• Risk management has guided our recent positioning activity, driven by taking profits in larger cap outperformers and redeploying into more attractively valued and smaller cap names.
• Preparing for a range of outcomes is our rationale for diversifying across a range of growth stocks. As the economy straddles a potential recession or uptick in inflation, we want to own companies with different drivers that are able to perform through varying market conditions.

By Evan Bauman, Peter Bourbeau, Aram Green, & Margaret Vitrano

Lower Cap Growth Stocks Poised to Catch Up

Market Overview

The positive momentum of 2023 extended into the first quarter as a likely economic soft landing and being past the peak of monetary tightening sent stocks broadly higher. The S&P 500 Index ( SP500, SPX ) advanced 10.56% for its best start since 2019, boosted by solid corporate earnings and continued enthusiasm for generative artificial intelligence ('AI'). While the market showed some signs of broadening, mega cap growth stocks maintained their leadership with the Russell Top 200 Growth Index (11.70%) being the best-performing segment for the quarter....

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