RBRK - ClearBridge SMID Cap Growth Strategy Q4 2024 Commentary

2025-03-10 09:00:00 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.
• SMID growth stocks rose in the fourth quarter, benefiting from a post-election rally and the market’s rotation back to growth leadership in December.
• The Strategy outperformed its benchmark in the fourth quarter, as contributors in health care and materials overcame detractors in the consumer discretionary sector.
• Our investment approach focuses on companies that can compound high levels of growth without depending on macro tailwinds, provide durable returns and have access to capital to fund high-growth opportunities.

By Brian Angerame, Jeffrey Bailin, CFA, Aram Green & Matthew Lilling, CFA

Market Overview

A market broadening in the fourth quarter sparked by Donald Trump's election victory and a further interest rate cut from the Federal Reserve proved momentum-driven and short lived. While small cap, value and cyclical shares were bid up in the aftermath of Trump's win, large caps and growth stocks reasserted control by quarter's end. As a result, the Russell 2500 Index rose 0.62%, underperforming the 2.75% of the Russell 1000 Index but outperforming the 0.33% return of the Russell 2000 Index ( RTY ). Growth ultimately outperformed during the quarter with the benchmark Russell 2500 Growth Index returning 2.43%, nearly 270 basis points ahead of the Russell 2500 Value Index....

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