UPS - ClearBridge Large Cap Value Strategy Q1 2024 Portfolio Manager Commentary

2024-04-12 09:15:00 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.
• A factor-driven market crowded in a few select winners has created excellent opportunities for our approach, which is to avoid making factor bets and instead to make stock selection decisions based on bottom-up fundamentals.
• The Strategy saw strong contributions from economically sensitive sectors such as financials and communication services, which were offset by weakness in our more defensive industrials and utilities holdings.
• The recent runup in stocks with strong “price momentum” has led the valuation disparity between growth and value stocks to approach all-time highs. While mispricings like these can persist for some time, they are unlikely to persist indefinitely.

By Dmitry Khaykin & Deepon Nag

Making Stock Judgments, Not Factor Bets

Market Overview

U.S. equities were up strongly in the first quarter as the rally for risk assets triggered by November's inflation print continued. Both value and growth stocks surged, with the Russell 1000 Value Index returning 8.99%, trailing the Russell 1000 Growth Index by 242 basis points for the quarter yet beating it in March by over 300 bps....

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