CLS - ClearBridge Canadian Small Cap Strategy Q1 2024 Portfolio Manager Commentary

2024-04-17 06:15:00 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 delivered solid absolute returns and outperformed its benchmark in the first quarter.
• Stock selection in IT, health care and consumer discretionary was the primary driver of relative performance. An underweight in materials, particularly precious metals, partially offset these results.
• The Strategy continued to high-grade holdings and build cash for dry powder, with the elimination of three holdings over the period where risk/reward assessments no longer merited inclusion.

By Garey J. Aitken, CFA, & Michael Richmond, CFA

Upgrading Portfolio Quality into Strength - Market Overview

After nearly two years of managing through steadily higher policy rates and regular prognostications of economic troubles, investors clearly expected 2024 to be a transition year. Rather than a change, the first quarter of 2024 looked much like 2023. The widely held expectations of further disinflation, a softer real economy and lower policy rates have proven largely misplaced: inflation has remained sticky and above central bank targets, the economy has been robust and forecasts for lower policy rates have been continually pushed later into the year and 2025....

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