ClearBridge Canadian Equity Strategy Q4 2024 Commentary

2025-01-14 07:40:00 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.
• While its benchmark reached all-time highs, the Strategy underperformed due to overweights in the interest-rate-sensitive communication services and utilities sectors as well as underweights and stock selection in IT and financials.
• Adds to a fundamentally improved Shopify highlighted surgical trading activity in the quarter that resulted in four new positions and two eliminations.
• Despite recent underperformance, we are encouraged by the rebound in interest-rate-sensitive stocks and see reasons for further rotation. Overall, we maintain defensive portfolio positioning that serves as dry powder to be deployed when better opportunities arise.

By Garey J. Aitken, CFA | Timothy W. Caulfield, CFA

Performance Moderates as Yields Rise - Fourth Quarter 2024

Market Overview

Following a surging third quarter, the S&P/TSX Composite Total Return Index ((TRI)) added 3.8% in the fourth quarter, reaching an all-time high on December 6. The S&P/TSX Composite TRI advanced 21.7% for the year — impressive returns for a market experiencing modest earnings growth with headwinds from higher interest rates, yet with strong expectations for double-digit earnings growth in 2025....

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