WOLF - ClearBridge Growth Strategy Q2 2024 Commentary

2024-07-06 07:45:00 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.
• During the quarter, a benchmark change to the Russell Midcap Growth Index went into effect and the Strategy’s name was simplified to ClearBridge Growth. We believe managing against this new benchmark will better illustrate the benefits of our high active share approach.
• The Strategy outperformed in a difficult period for smaller cap stocks, led by contributions from our holdings in health care and IT.
• We added five new positions, including three in industrials to reduce our underweight to the sector, while also upgrading our IT exposure and diversifying our health care holdings.

By Evan Bauman | Aram Green | Amanda Leithe, CFA

Market and Strategy Overview

Equity leadership narrowed considerably in the second quarter, with mega cap growth stocks reasserting their influence and obscuring weakness across much of the market. The S&P 500 Index ( SP500, SPX ) rose 4.28% for the period, while the NASDAQ Composite ( COMP:IND ) advanced 8.26%. By comparison, the Russell Midcap Growth Index and small cap Russell 2000 Index were down 3.21% and 3.28% for the quarter, respectively. Despite this, the ClearBridge Growth Strategy both outperformed its recently updated benchmark by over 500 basis points on a gross basis and delivered positive absolute returns....

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