| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
The ClearBridge All Cap Growth Strategy underperformed its Russell 3000 Growth Index benchmark in Q4 2025, hurt by allocation differences among mega cap growth holdings and weak stock selection in communication services and health care. An underweight to Alphabet was a primary detractor despite the team consistently adding to the position since April 2024. The company's AI-supported digital advertising success and Google Gemini chatbot boosted shares over 25% for the quarter. Netflix fell due to uncertainty over its proposed $72 billion Warner Bros. Discovery acquisition. The team initiated three new positions during the quarter: Airbus, benefiting from long-term commercial aircraft demand; Linde, operating in the attractive industrial gas market; and Hilton, with its asset-light hospitality model. Looking forward, markets remain resilient but volatile as momentum-driven areas cooled. AI continues representing a powerful long-term opportunity, though early beneficiaries have seen significant gains. The strategy emphasizes balance, owning companies with both offensive growth potential and defensive characteristics including strong free cash flow and clean balance sheets.
The ClearBridge All Cap Growth Strategy focuses on disciplined stock selection and balanced portfolio construction in a volatile market environment, emphasizing companies with durable fundamentals, innovation-driven growth, and strong execution while maintaining exposure to long-term opportunities like AI and positioning for potential market leadership broadening.
Markets remain resilient, but volatility has increased as momentum-driven areas cooled and stock-level dispersion widened. AI continues to represent a powerful long-term opportunity, though early beneficiaries have already seen significant gains. The team emphasizes balance, owning companies with both offensive growth potential and defensive characteristics.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Feb 5 2026 | 2025 Q4 | AAPL, AIR.PA, DXYN, FCX, GOOGL, HLT, LIN, LLY, MSFT, NFLX, NTRA, ORCL, TMO, VRTX, WBD | aerospace, AI, growth, healthcare, Hospitality, Pharmaceuticals, technology, volatility | - | AI continues to represent a powerful long-term opportunity, though early beneficiaries such as semiconductors and infrastructure have already seen significant gains. The team is focused… |
| Nov 8 2025 | 2025 Q3 | AVGO, NTRA, ORCL, UNH, VST | AI, Cloud, infrastructure, semiconductors, software | - | The letter highlights extreme dispersion between AI winners and AI losers, with cloud providers, semiconductor leaders, and AI infrastructure companies massively outperforming. Application software and… |
| Jul 29 2025 | 2025 Q2 | ICLR, LLY, PLTR, SNPS, TGT | AI, growth, secular trends, technology, volatility |
LLY SNPS PLTR ICLR TGT |
The commentary highlights a sharp risk-on rebound led by technology, AI, and communication services following tariff fears. ClearBridge emphasizes selective growth investing with attention to… |
| Mar 31 2025 | 2025 Q1 | ABBV, APP, ARES, CRL | - | - | - |
| Dec 31 2024 | 2024 Q4 | BIIB, CMCSA, CMG, ICLR | - | - | - |
| Sep 30 2024 | 2024 Q3 | APTV, BLDR, EL, TEAM, WOLF | - | - | - |
| Jul 31 2024 | 2024 Q2 | ELF, IDXX, UPS | - | - | - |
| Apr 15 2024 | 2024 Q1 | MDB, PYPL, SPLK MM | - | - | - |
| Jan 13 2024 | 2023 Q4 | CTAS, NOW, U | - | - | - |
| Nov 10 2023 | 2023 Q3 | GOOG, SBUX, TGT, UNP | - | - | - |
| Jun 30 2023 | 2023 Q2 | CLH, MRVL | - | - | - |
| Mar 31 2023 | 2023 Q1 | ACN, LLY, NVDA, TXG | - | - | - |
| Jan 26 2023 | 2022 Q4 | AMZN, AVGO, CRWD, DIS, EL, IMGN, MMC, NFLX, NKE, TEAM, TSLA, UNH, V, WOLF | - | - | - |
| Feb 11 2022 | 2022 Q3 | BIIB, CMCSA, FIS, META, PATH, TEAM | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
GLP1Eli Lilly represents the fund's exposure to the GLP-1 obesity and diabetes treatment market, which continues to show exceptional growth. Mounjaro and Zepbound sales more than doubled year-over-year, with demand continuing to outpace supply. The fund sees this as a multi-decade growth opportunity with expanding indications and sustained competitive advantages. |
Obesity Diabetes Pharmaceuticals Growth Innovation | |
HotelsChoice Hotels represents asset-light, high-margin hotel franchisor trading at distressed multiples due to cyclical headwinds. Company shifting portfolio toward higher-revenue segments including Extended Stay and international expansion. Significant cash unlock potential from balance sheet optimization could enable opportunistic share buybacks at historically low valuations. |
Hospitality Franchising Extended Stay International Capital | |
SpaceSpaceX is generating significant value through rapid expansion of Starlink broadband service and establishing itself as a leading launch provider with reusable technology. The company is making tremendous progress on Starship, the largest most powerful rocket ever flown, representing a significant leap forward in space exploration capabilities. |
Satellites Launch Broadband Reusable Exploration | |
| 2025 Q3 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
| 2025 Q2 |
Growth |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 29, 2025 | Fund Letters | Evan Bauman | LLY | Eli Lilly and Company | Health Care | Pharmaceuticals | Bear | NYSE | Competition, Obesity, pharmaceuticals, Pipelines, valuation | Login |
| Jul 29, 2025 | Fund Letters | Evan Bauman | SNPS | Synopsys, Inc. | Information Technology | Application Software | Bull | NASDAQ | duopoly, Margins, Pricing, semiconductors, Software | Login |
| Jul 29, 2025 | Fund Letters | Evan Bauman | PLTR | Palantir Technologies, Inc. | Information Technology | Application Software | Bull | NYSE | AI, analytics, growth, Margins, Software | Login |
| Jul 29, 2025 | Fund Letters | Evan Bauman | ICLR | ICON, plc | Health Care | Life Sciences Tools & Services | Bear | NASDAQ | Funding, Outsourcing, Pipelines, valuation, visibility | Login |
| Jul 29, 2025 | Fund Letters | Evan Bauman | TGT | Target Corporation | Consumer Discretionary | General Merchandise Stores | Bear | NYSE | Competition, Discretionary, Margins, retail, tariffs | Login |
| TICKER | COMMENTARY |
|---|---|
| AAPL | Apple Inc. represents 1.6% of company owned with cost basis of $6,255 million and market value of $61,962 million, providing $280 million in 2025 dividends. |
| AIR.PA | We initiated three positions during the quarter, the largest being European aerospace and defense contractor Airbus. The long-term demand for commercial aircraft to support air travel is increasing, with much of the growth from China and other parts of Asia, while aging of the existing fleet provides a robust pipeline of replacement demand for years to come. With the A320 family providing a durable and scalable platform, Airbus is entering a favorable period for free cash flow growth before it needs to invest in a next-generation aircraft. |
| FCX | Freeport McMoRan was able to recover the share price drawdown seen in September following a major mudflow event at their Grasberg mine, which resulted in a full suspension of production and a material cut to guidance. The share price finished 2025 at its high. |
| GOOGL | In the third quarter, Google, Kairos Power, and the Tennessee Valley Authority announced a major collaboration centered on a novel power purchase agreement. Google followed this announcement with another significant step forward. On October 27, Google and NextEra Energy announced plans to restart the Duane Arnold Energy Center. |
| HLT | New position in global hospitality company Hilton. |
| LIN | While the company remains a high-quality global leader in industrial gases, shares of Linde plc declined nearly 10% in Q4 due to a persistent industrial gas volume recession, softer guidance and global macroeconomic concerns. From a macro standpoint, the company continues to struggle with negative base volumes in its core industrial segments. |
| LLY | Eli Lilly shares were a top performer in 4Q25 after delivering strong Q3 2025 earnings in October. Revenue rose 54% year-over-year to $17.6 billion, and adjusted EPS of $7.02 beat consensus of $6.02. Growth was driven by its GLP-1 franchises, Mounjaro and Zepbound, where sales more than doubled year-over-year, alongside strength in other therapeutic areas. Management raised full-year guidance for both revenue and earnings, reinforcing investor confidence in the company's growth outlook. |
| MSFT | MSFT was a detractor in 4Q25 following its fiscal first-quarter 2026 earnings report released on October 29. While results were better than expected operationally, investor reaction was driven by guidance and capital expenditure intensity rather than headline performance. Revenue grew 17% year-over-year, exceeding consensus expectations, and Azure revenue increased 39% year-over-year, also ahead of estimates. However, management guided to a sequential deceleration in Azure growth in fiscal Q2, signaling some moderation after a period of exceptional demand. |
| NFLX | NFLX was the portfolio's largest detractor in 4Q25 following investor concerns around near-term subscriber growth and rising content spending. While revenue grew approximately 10% year-over-year, management guided to slower net subscriber additions in North America and Europe after recent price increases, and margins were pressured by elevated investment in live sports and international content. |
| NTRA | Not owning Natera, Inc. (NTRA) detracted from performance. The stock rose after its earnings announcement, signaling a strong revenue beat. |
| ORCL | Investor enthusiasm for Oracle's stock in calendar year 2025 was initially driven by several multi-billion-dollar contracts it signed with leading AI companies, including OpenAI and Meta. However, in Q4 sentiment for ORCL's growth prospects shifted to skepticism, as investors began to scrutinize the return profile of the substantial capital investments required to support the approximately $500 billion of contracts signed by Oracle. Given the widening range of potential outcomes associated with Oracle's elevated capital needs, we reduced our position in ORCL during Q4. |
| TMO | Thermo Fisher Scientific was a strong contributor with 8.69% ending weight and 1.47% contribution. |
| VRTX | Top gainers in the Fund this quarter included Vertex Pharmaceuticals (+16%) |
| WBD | Warner Bros Discovery (WBD) was the top contributor during the quarter. The U.S.-headquartered media company's stock price surged as multiple parties submitted offers to acquire all or part of the business. Following several rounds of bidding, WBD announced an agreement to sell its Streaming and Studios business to Netflix, while spinning the Global Networks business to shareholders. Paramount Skydance subsequently made a direct $30 per share offer to shareholders for the entire company. We are pleased with the steps the WBD board has taken thus far to unlock shareholder value. We will continue to closely monitor developments as this bidding war unfolds. |
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