U - ClearBridge Large Cap Growth ESG Strategy Q2 2024 Portfolio Manager Commentary

2024-04-05 10:50:00 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 outperformed due to a combination of active management of our mega cap exposure as well as strong stock selection across industrials and similar early-cycle companies.
• Risk management has guided our recent positioning activity driven by trimming from the select bucket of growth companies and redeploying into undervalued stable and cyclical names.
• Preparing for a range of outcomes is our rationale for diversifying across the growth buckets. 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 Peter Bourbeau & Margaret Vitrano

Staying Disciplined in a Broadening Market

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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