MRVL - ClearBridge Sustainability Leaders Strategy Q1 2024 Portfolio Manager Commentary

2024-04-17 07:00:00 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.
• U.S. equities continued their upward march in the first quarter as the momentum rally, begun following November’s inflation print, showed few signs of flagging.
• We were active in seizing opportunities as a concentrated market left pockets where excellent assets were undervalued, in particular, IT companies with a variety of unique exposures to artificial intelligence.
• ClearBridge is closely watching sustainability-related opportunities presented by AI as well as its energy intensity and social dimensions as the phenomenon plays out in our companies across sectors.

By Derek Deutsch, CFA, & Mary Jane McQuillen

Staying Active in a Concentrated Market - Market Overview

U.S. equities continued their upward march in the first quarter as the momentum rally, begun following November's inflation print, showed few signs of flagging. Behind the rally was strong GDP growth, the fading of recession fears, and fervor for the main investor themes in the last year: AI and GLP-1s.

Cyclical sectors in the benchmark Russell 3000 Index such as energy (13.13%), financials (11.71%) and industrials (11.11%) performed well on an improving economic outlook. Communication services (14.65%), which led the index, and information technology (IT; 11.81%) continued to benefit from AI enthusiasm. Rate-sensitive real estate (1.14%) and utilities (4.83%), meanwhile, trailed amid signs anticipated rate cuts from the Federal Reserve would be pushed out....

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