MRVI - ClearBridge Mid Cap Strategy Q4 2023 Portfolio Manager Commentary
2024-01-22 13:30:00 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.
- Mid cap stocks generated positive returns as optimism over an economic soft landing, a dovish Fed pivot, and broadening market performance helped fuel a late-year rally.
- The Strategy underperformed its benchmark, due to inconsistent performance among our industrial and consumer discretionary holdings, while stock selection in consumer staples proved positive.
- We expect our process of building a portfolio of high-quality companies with strong balance sheets and predictable cash flow will help us navigate whatever challenges the new year brings.
By Brian Angerame & Matthew Lilling, CFA
Low-Quality Rally Weighs on Relative Returns
Market Overview
Equity markets generated strong returns in the fourth quarter, bolstered by declining bond yields and a resurgence of optimism that the U.S. economy could indeed achieve a soft landing. This helped to further broaden market participation among mid cap stocks, with the Russell Midcap Index returning 12.82% compared to the 11.96% return of the Russell 1000 Index. Growth stocks outperformed their value counterparts, with the Russell Midcap Growth Index returning 14.55% versus the Russell Midcap Value Index, which returned 12.11%....
ClearBridge Mid Cap Strategy Q4 2023 Portfolio Manager Commentary