ClearBridge Investments Large Cap Value

Investor Summary

The fund is managed by an experienced team led by Dmitry Khaykin, Managing Director and Portfolio Manager with 30 years of investment industry experience, who joined ClearBridge in 2003 and holds an M.B.A. from Wharton School and B.A. from NYU. Deepon Nag serves as Co-Managing Director and Portfolio Manager as well as Co-Director of Research, bringing 17 years of investment industry experience plus 5 years of technology industry experience, with an M.B.A. from Columbia Business School and B.S. in computer science and mathematics from University of Puget Sound. The management team combines deep fundamental analysis expertise with technology sector knowledge, having previously worked at prestigious firms including Gabelli Asset Management, Macquarie Capital, Millennium Partners, and Intel. Both managers have demonstrated long tenure at ClearBridge with Khaykin advancing from Senior Media-Telecom Analyst to Portfolio Manager since 2007, and Nag progressing from Senior Research Analyst to Portfolio Manager since joining in 2016.

Fund Strategy

The ClearBridge Large Cap Value Strategy employs a fundamentally based bottom-up investment process to identify mispriced high-quality franchises operating in attractively structured end markets. The core investment tenet is to invest in high-quality businesses with underappreciated, sustainable, durable competitive advantages, with the conviction that this is the path to superior returns through the cycle. The strategy emphasizes rigorous valuation discipline to find attractive stocks when no one wants them, applying more than 100 years of combined investment experience to the bottom-up stock selection process. Portfolio managers focus on being mindful of concentration and trade policy-related risks to actively position portfolios to best navigate elevated uncertainty, while maintaining a persistent bias toward healthcare, energy, and information technology sectors based on sustainable growth franchises.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
-	-	-

Executive Summary

ClearBridge Large Cap Value Strategy outperformed in Q1 2026 as value leadership broadened meaningfully, with Russell 1000 Value gaining 2.1% and outpacing growth by nearly 1,200 basis points. The strategy's focus on high-quality companies with durable moats was rewarded as markets rotated away from mega cap concentration toward fundamentals-driven leadership. Energy companies surged on U.S.-Iran conflict driving oil prices higher, while industrials benefited from positive ISM Manufacturing PMI. Portfolio activity concentrated in communication services and industrials, initiating T-Mobile while exiting Comcast and Disney due to competitive pressures and secular challenges. Added Honeywell while selling Otis over execution concerns. Despite Microsoft weakness on AI monetization delays, managers added to the position maintaining conviction in Azure demand and AI workload acceleration. The strategy benefited from overweights to materials and energy, with strong stock selection in industrials and healthcare. Looking forward, managers believe their quality-focused approach will remain resilient amid geopolitical tensions, rising energy prices, and AI investment cycle uncertainty.

Forward Outlook

Managers focus on high-quality businesses with durable competitive advantages and reasonable valuations that can drive superior returns through the cycle. In an increasingly complex macro backdrop marked by geopolitical tensions, rising energy prices and ongoing uncertainty around AI-driven investment cycles, they believe the companies they own will remain resilient.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Mar 31 2026	2026 Q1	AXP, BKNG, CMCSA, COF, DE, DIS, HON, JNJ, MSFT, OTIS, TMUS, XPO	AI, Cyclical, energy, industrials, large cap, Quality, value	XPO DE JNJ MSFT COF AXP TMUS BKNG HON	ClearBridge Large Cap Value outperformed as value leadership broadened with Russell 1000 Value up 2.1% versus growth. Strategy benefited from quality industrial holdings and energy overweight amid U.S.-Iran conflict. Active repositioning included initiating T-Mobile, exiting Disney and Comcast, buying Honeywell. Managers maintain focus on durable competitive moats through complex macro backdrop.
Nov 5 2025	2025 Q3	AMT, AMZN, APD, AVGO, CMCSA, CVS, DE, GOOGL, HLN.L, INTC, JNJ, MCHP, ORLY, PNC, SRE, TMO, TSM, UNH, USB, WEC	AI, healthcare, Outperformance, Quality, semiconductors, technology, Utilities, value	-	ClearBridge Large Cap Value outperformed in Q3 2025 led by semiconductor holdings benefiting from AI spending surge. Managers neutralized momentum exposure and upgraded portfolio quality while maintaining focus on resilient, high-quality businesses. They remain cautiously optimistic as market breadth improves and capital flows shift toward overlooked value opportunities.
Jul 4 2025	2025 Q2	AAPL, ADBE, AIR.PA, AVGO, ETN, ICLR, LIN, LLY, META, MMC, MRVL, MSFT, NFLX, NOW, NVDA, TGT, TMO, TSM, UNH, V	AI, Cloud, diversification, growth, large cap, semiconductors, technology	TSM AVGO MRVL NOW AIR FP LIN TGT ICLR ADBE	ClearBridge's Large Cap Growth Strategy underperformed in Q2 as their diversified approach lagged the concentrated benchmark during the AI-driven rebound. The team added five new positions including Broadcom and Marvell to broaden semiconductor exposure while exiting Target and Adobe. They remain committed to balanced, risk-aware growth investing despite near-term benchmark headwinds.
Mar 31 2025	2025 Q1	AAP, AVGO, BRK-B, CVS, CVX, EIX, GOOGL, LLY, MCHP, MCK, META, NOC, NVO, ORCL, ORLY, PGR, RTX, SRE, TRV, VNOM	AI, defense, energy, financials, healthcare, large cap, Utilities, value	-	ClearBridge's value managers are capitalizing on the rotation from expensive growth stocks to reasonably valued defensive companies. They've repositioned the portfolio ahead of an overdue value reversion, selectively managing AI exposures while adding defensive positions in utilities, defense, and healthcare. Despite near-term volatility from geopolitical tensions, they see compelling opportunities in discounted quality franchises.
Dec 31 2024	2024 Q4	AVGO, AXP, BAC, BDX, COF, CVS, DE, ELV, INTC, JPM, MCHP, MCK, ORCL, PEP, SRE, TMO, UNH, V, XPO	financials, healthcare, materials, Quality, technology, Utilities, value	-	ClearBridge's Large Cap Value Strategy outperformed in Q4 as market breadth began normalizing after a challenging 2024. Strong financials exposure and quality bias in materials/utilities drove performance, while healthcare and semiconductor holdings detracted. Managers added to defensive names at attractive valuations and expect a business-friendly environment to support market broadening and value opportunities.
Sep 30 2024	2024 Q3	APD, AVGO, AXP, COP, EIX, INTC, ITW, LRCX, MCHP, MCK, NESN.SW, ORLY, PH, SBUX, SCHW, SHW, SRE, UPS, XPO	industrials, large cap, Quality, semiconductors, technology, Utilities, value	INTC MCK SHW APD ORLY SBUX AVGO PH	ClearBridge's Large Cap Value Strategy lagged in Q3 as markets favored deeper value over their high-quality franchise approach. Despite headwinds at Intel and McKesson, strong performers like Sherwin-Williams and Air Products demonstrated the durability of quality businesses. The team actively added four new positions while maintaining focus on long-term value creation through market dislocations.
Jun 30 2024	2024 Q2	APD, BAC, CHTR, COP, CVS, GOOGL, INTC, MCK, MSI, NESN.SW, SHW, SRE, TRV, UPS, XPO	AI, financials, healthcare, industrials, large cap, technology, value	-	ClearBridge's value strategy underperformed in Q2 as AI concentration punished perceived losers while rewarding winners. The team sees this valuation divergence creating opportunities in underappreciated quality companies. Strong performance from Alphabet, Bank of America, and McKesson was offset by weakness in Intel and transportation holdings. Portfolio adjustments focused on contrarian positioning in temporarily out-of-favor names.
Jun 15 2024	2024 Q1	AMZN, ETN, GOOGL, INTC, META, MSFT, NEE, NFLX, NVDA, PANW, PYPL, RTX, UBER	growth, inflation, large cap, Mega Cap, rates, technology	-	ClearBridge's large cap growth strategy faced rate-driven headwinds in April but made strategic moves, repurchasing Alphabet at attractive valuations and exiting Intel. Mega caps showed strong cloud and AI momentum despite market pressure. The team is balancing exposure to secular growth drivers while trimming expensive names for more reasonably priced alternatives with better cash flow support.
May 23 2023	2023 Q1	AXP, BAC, BDX, COP, CVX, DISH, ELV, GOOGL, HON, JNJ, JPM, MCK, META, MSFT, MSI, PGR, SCHW, TEL, UNH, USB	Banking, financials, healthcare, large cap, Quality, technology, value	SCHW AVGO\|LLY\|MRK\|NVDA\|ORCL\|PGR ADI\|BDX\|FI\|FND\|HAS\|META\|MSFT\|MSI\|ORCL\|TMO ADI\|BDX\|FI\|FND\|HAS\|META\|MSFT\|MSI\|ORCL\|TMO MCK	ClearBridge's value strategy navigated Q1 2023 banking turmoil by favoring large, diversified banks while opportunistically adding to healthcare positions including McKesson and Becton Dickinson. Technology holdings Meta and TE Connectivity contributed positively, though AI competition prompted Alphabet trimming. Managers remain cautious on macro risks while focusing on quality companies with sustainable competitive advantages.
Feb 11 2022	2022 Q3	COP, MLM	-	-

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Mar 31 2026

2026 Q1

AXP, BKNG, CMCSA, COF, DE, DIS, HON, JNJ, MSFT, OTIS, TMUS, XPO

AI, Cyclical, energy, industrials, large cap, Quality, value

XPO
DE
JNJ
MSFT
COF
AXP
TMUS
BKNG
HON

ClearBridge Large Cap Value outperformed as value leadership broadened with Russell 1000 Value up 2.1% versus growth. Strategy benefited from quality industrial holdings and energy overweight amid U.S.-Iran conflict. Active repositioning included initiating T-Mobile, exiting Disney and Comcast, buying Honeywell. Managers maintain focus on durable competitive moats through complex macro backdrop.

Nov 5 2025

2025 Q3

AMT, AMZN, APD, AVGO, CMCSA, CVS, DE, GOOGL, HLN.L, INTC, JNJ, MCHP, ORLY, PNC, SRE, TMO, TSM, UNH, USB, WEC

AI, healthcare, Outperformance, Quality, semiconductors, technology, Utilities, value

ClearBridge Large Cap Value outperformed in Q3 2025 led by semiconductor holdings benefiting from AI spending surge. Managers neutralized momentum exposure and upgraded portfolio quality while maintaining focus on resilient, high-quality businesses. They remain cautiously optimistic as market breadth improves and capital flows shift toward overlooked value opportunities.

Jul 4 2025

2025 Q2

AAPL, ADBE, AIR.PA, AVGO, ETN, ICLR, LIN, LLY, META, MMC, MRVL, MSFT, NFLX, NOW, NVDA, TGT, TMO, TSM, UNH, V

AI, Cloud, diversification, growth, large cap, semiconductors, technology

TSM
AVGO
MRVL
NOW
AIR FP
LIN
TGT
ICLR
ADBE

ClearBridge's Large Cap Growth Strategy underperformed in Q2 as their diversified approach lagged the concentrated benchmark during the AI-driven rebound. The team added five new positions including Broadcom and Marvell to broaden semiconductor exposure while exiting Target and Adobe. They remain committed to balanced, risk-aware growth investing despite near-term benchmark headwinds.

Mar 31 2025

2025 Q1

AAP, AVGO, BRK-B, CVS, CVX, EIX, GOOGL, LLY, MCHP, MCK, META, NOC, NVO, ORCL, ORLY, PGR, RTX, SRE, TRV, VNOM

AI, defense, energy, financials, healthcare, large cap, Utilities, value

ClearBridge's value managers are capitalizing on the rotation from expensive growth stocks to reasonably valued defensive companies. They've repositioned the portfolio ahead of an overdue value reversion, selectively managing AI exposures while adding defensive positions in utilities, defense, and healthcare. Despite near-term volatility from geopolitical tensions, they see compelling opportunities in discounted quality franchises.

Dec 31 2024

2024 Q4

AVGO, AXP, BAC, BDX, COF, CVS, DE, ELV, INTC, JPM, MCHP, MCK, ORCL, PEP, SRE, TMO, UNH, V, XPO

financials, healthcare, materials, Quality, technology, Utilities, value

ClearBridge's Large Cap Value Strategy outperformed in Q4 as market breadth began normalizing after a challenging 2024. Strong financials exposure and quality bias in materials/utilities drove performance, while healthcare and semiconductor holdings detracted. Managers added to defensive names at attractive valuations and expect a business-friendly environment to support market broadening and value opportunities.

Sep 30 2024

2024 Q3

APD, AVGO, AXP, COP, EIX, INTC, ITW, LRCX, MCHP, MCK, NESN.SW, ORLY, PH, SBUX, SCHW, SHW, SRE, UPS, XPO

industrials, large cap, Quality, semiconductors, technology, Utilities, value

INTC
MCK
SHW
APD
ORLY
SBUX
AVGO
PH

ClearBridge's Large Cap Value Strategy lagged in Q3 as markets favored deeper value over their high-quality franchise approach. Despite headwinds at Intel and McKesson, strong performers like Sherwin-Williams and Air Products demonstrated the durability of quality businesses. The team actively added four new positions while maintaining focus on long-term value creation through market dislocations.

Jun 30 2024

2024 Q2

APD, BAC, CHTR, COP, CVS, GOOGL, INTC, MCK, MSI, NESN.SW, SHW, SRE, TRV, UPS, XPO

AI, financials, healthcare, industrials, large cap, technology, value

ClearBridge's value strategy underperformed in Q2 as AI concentration punished perceived losers while rewarding winners. The team sees this valuation divergence creating opportunities in underappreciated quality companies. Strong performance from Alphabet, Bank of America, and McKesson was offset by weakness in Intel and transportation holdings. Portfolio adjustments focused on contrarian positioning in temporarily out-of-favor names.

Jun 15 2024

2024 Q1

AMZN, ETN, GOOGL, INTC, META, MSFT, NEE, NFLX, NVDA, PANW, PYPL, RTX, UBER

growth, inflation, large cap, Mega Cap, rates, technology

ClearBridge's large cap growth strategy faced rate-driven headwinds in April but made strategic moves, repurchasing Alphabet at attractive valuations and exiting Intel. Mega caps showed strong cloud and AI momentum despite market pressure. The team is balancing exposure to secular growth drivers while trimming expensive names for more reasonably priced alternatives with better cash flow support.

May 23 2023

2023 Q1

AXP, BAC, BDX, COP, CVX, DISH, ELV, GOOGL, HON, JNJ, JPM, MCK, META, MSFT, MSI, PGR, SCHW, TEL, UNH, USB

Banking, financials, healthcare, large cap, Quality, technology, value

SCHW
AVGO|LLY|MRK|NVDA|ORCL|PGR
ADI|BDX|FI|FND|HAS|META|MSFT|MSI|ORCL|TMO
ADI|BDX|FI|FND|HAS|META|MSFT|MSI|ORCL|TMO
MCK

ClearBridge's value strategy navigated Q1 2023 banking turmoil by favoring large, diversified banks while opportunistically adding to healthcare positions including McKesson and Becton Dickinson. Technology holdings Meta and TE Connectivity contributed positively, though AI competition prompted Alphabet trimming. Managers remain cautious on macro risks while focusing on quality companies with sustainable competitive advantages.

Feb 11 2022

2022 Q3

COP, MLM

QUARTER	THEMES	TAGS
2026 Q1	Value Value leadership broadened meaningfully with Russell 1000 Value Index positive and roughly 1,200 bps ahead of growth as markets rotated away from mega cap concentration. The strategy's anchoring in high-quality companies with durable moats was rewarded in the quarter's shift in market leadership.	Value Quality Moats
	AI Microsoft traded down on worries over higher-than-expected AI capex and delays in monetizing its AI backlog. Despite timing and perception issues, managers maintain strong conviction given accelerating AI workload monetization as capacity comes online and strengthening traction in higher-margin software offerings like M365 Copilot.	AI Cloud Software
	Oil Energy companies surged as the U.S.-Iran conflict pushed up oil prices. The portfolio benefited from overweights to energy with positive contributions from ConocoPhillips, Chevron, and Enterprise Products Partners LP.	Oil Energy Geopolitical
	Industrials Industrials stocks got a boost from a return to positive territory for the ISM Manufacturing PMI. XPO benefited from ongoing improvements in service quality, mix and pricing. Deere delivered a 20% earnings beat with better than expected large agriculture orders suggesting this year may be the cyclical trough.	Industrials Manufacturing Cyclical
	Travel Managers redeployed capital into Booking, viewing it as a durable, high-quality travel platform with a strong competitive position. They believe its role in bookings, cancellations and customer service would remain hard to disintermediate, seeing an opportunity after valuations had been pressured by AI-related concerns.	Travel Platforms Quality
2025 Q3	AI The massive surge in spending on artificial intelligence continues to bolster chip providers like Broadcom, whose custom-designed chips are gaining broader adoption with hyperscalers. Taiwan Semiconductor leads in advanced semiconductor manufacturing with dominant market share in leading-edge nodes being adopted by nearly all major AI companies. The Strategy neutralized the powerful AI trade by initiating positions in Taiwan Semiconductor and Amazon.com while increasing Alphabet position.	Semiconductors Hyperscalers Manufacturing Chips Technology
	Semiconductors Semiconductor holdings led performance with Broadcom, Intel and Taiwan Semiconductor driving gains. Broadcom benefits from custom-designed chips gaining adoption with hyperscalers as complement to Nvidia's GPUs. Taiwan Semiconductor dominates advanced manufacturing in 3nm and 2nm nodes. Intel benefited from investments and partnerships providing confidence in capitalizing on domestic manufacturing needs.	Manufacturing Technology AI Foundries Equipment
	Quality The Strategy focuses on high-quality companies with resilient, durable business models that can compound returns over time regardless of short-term macro or geopolitical noise. Managers upgraded quality by exiting U.S. Bancorp and initiating PNC position, believing PNC has greater ability to execute on revenues and expenses. Tighter underwriting implemented across portfolio with specific KPIs monitored.	Durability Resilience Underwriting Execution Business Models
	Value The current market regime offers significant value opportunities as overall market breadth improves and capital flows shift away from high-flying growth stocks toward overlooked, high-quality businesses. The Strategy sees the investment landscape shifting with inflation and interest rates structurally higher, creating opportunities in undervalued names.	Opportunities Growth Breadth Flows Undervalued
2025 Q2	AI The Strategy broadened AI semiconductor exposure through new positions in Broadcom and Marvell Technology. Broadcom enables better participation in custom silicon chips for AI computing, working with large technology companies to develop custom silicon expected to grow alongside robust demand for Nvidia's GPUs. Marvell designs chips and networking equipment that power AI technologies and has a strong interconnect business, though its AI revenue ramp has been slower than peers.	Semiconductors Custom Silicon GPUs Networking Interconnect
	Semiconductors The portfolio was active in semiconductor positioning, trimming Taiwan Semiconductor due to geopolitical tensions and adding Broadcom and Marvell Technology. The managers focused on companies designing chips for AI computing and networking equipment. Marvell's valuation has compressed significantly and now trades at a growth-adjusted discount to AI semiconductor peers, providing an attractive entry point.	AI Custom Silicon Networking Valuation Geopolitical Risk
	Cloud ServiceNow was added as a new position, providing an end-to-end software-as-a-service platform to help enterprise customers automate business processes. The company has a monetizable generative AI product being adopted by customers. Broadcom's cloud infrastructure software business is expected to continue growing given its entrenched position within enterprises.	SaaS Enterprise Software Automation Generative AI Infrastructure
2025 Q1	Value The managers have taken advantage of expensive momentum-driven stocks to reallocate capital into areas where valuations are more reasonable yet fundamentals remain stable and defensive. The valuation gap between growth and value had reached historically extreme levels, making a reversion long overdue.	Value Valuations Growth Defensive
	AI The managers remain very selective with AI exposures, believing some market froth is likely to fade. They exited Oracle due to stretched valuations and exposure to unprofitable AI startups, while maintaining Broadcom for its AI-focused custom ASIC solutions.	AI Technology Semiconductors Cloud Valuations
	Utilities The managers increased exposure to utilities due to rising electricity demand, highly stable cash flows and attractive valuations. However, holdings in Edison International and Sempra were negatively impacted by Southern California wildfires and regulatory changes.	Utilities Electricity Regulated Defensive
	Defense Defense names RTX and Northrop Grumman led performance as geopolitical tensions remained elevated. Both companies have moved away from fixed-price contracts and should see margin expansion. European defense spending increases should benefit U.S. defense primes.	Defense Geopolitical Margins Spending
	GLP1 The managers initiated a position in Novo Nordisk, seeing a buying opportunity after a significant pullback. They believe the GLP-1 market remains vast and that Novo alongside Eli Lilly is well-positioned to maintain a duopolistic structure for years to come.	GLP1 Diabetes Obesity Pharmaceuticals
2024 Q4	Value The Strategy follows a diversified, valuation-sensitive approach investing in high-quality franchises within durable, growing markets at reasonable valuations. The managers saw a large valuation divergence in 2024 that provided opportunities as high-quality companies weren't attracting capital. They maintained valuation discipline by trimming positions in American Express and JPMorgan Chase due to strong performance.	Valuation Quality Franchises Discipline
	Financials The Strategy maintained an overweight in financials with focus on payments and consumer finance companies like Visa, Capital One and American Express. These firms, along with banks such as JPMorgan Chase and Bank of America, gained from economic resilience, robust consumer spending, yield curve normalization and anticipated reduction in regulatory pressures from the incoming administration.	Banks Payments Consumer Finance Regulatory
	Semiconductor Cycle The embedded semiconductor industry is experiencing a significant cyclical downturn as customers deplete inventories they had stockpiled during the COVID-era chip shortages. This negatively impacted Microchip Technology's near-term financials, but the managers believe its large customer base and sticky products will allow it to maintain pricing and market share once recovery materializes.	Semiconductors Inventory Cyclical Recovery
2024 Q3	Quality The strategy focuses on high-quality, less commoditized and less cyclical stocks with strong franchise characteristics. These businesses generate higher returns and compound value at more sustainable rates than deeper value peers, though they tend to lag in very strong markets.	Franchise Returns Sustainable Defensive Moats
	Value The fund seeks dislocations between stock prices and underlying franchise values created by volatile markets. Recent market performance has created attractive entry points in high-quality companies the managers prefer.	Dislocation Undervalued Entry Points Discount Fair Value
	Semiconductors Intel faces pressure from softness in PC and server markets and competitive concerns, but the manager expects improved product positioning and market share gains in 2025. The fund also added Broadcom for its custom silicon business and VMware acquisition benefits.	Intel Broadcom Custom Silicon Product Cycle Market Share
2024 Q2	AI The massive ramp up in AI spending has crowded out spending in other technology verticals, creating a market where AI winners enjoy strong multiple expansion while perceived AI losers are severely punished. The divergence in valuations between perceived AI winners and losers has created attractive opportunities where high-quality companies are being underappreciated.	Data Centers Technology Semiconductors Infrastructure Valuations
	GLP1 McKesson is benefiting from the growth of GLP-1 medications for diabetes and obesity, with revenues from GLP-1s making up a sizable portion of recent growth in its U.S. pharmaceutical segment, albeit at relatively low profitability.	Pharmaceuticals Diabetes Medical Distribution Healthcare
	Hydrogen Air Products signed a 15-year agreement to supply TotalEnergies' European refineries with 70,000 tons of green hydrogen annually starting in 2030. The deal represents an important step as APD executes on a large backlog of major hydrogen projects that can provide commercial scale green hydrogen to decarbonize heavy industry.	Energy Transition Decarbonization Industrial Gases Green Energy
	Semiconductors Core PC and server markets remain depressed due to AI spending crowding out traditional enterprise infrastructure. However, aging infrastructure and ongoing growth of IT workloads should lead to a cyclical recovery in both markets, particularly benefiting Intel despite current headwinds.	Semiconductor Cycle PCs Servers Technology Infrastructure
2024 Q1	AI Amazon and Microsoft both saw acceleration in cloud revenues and communicated increasing run rates for their AI-driven services. Meta is focusing on high-return AI investments while maintaining cost discipline.	Cloud Services Investment Revenue Growth
	Cloud Cloud revenues accelerated at both Amazon and Microsoft during the quarter. The secular growth drivers for cloud services remain intact despite higher interest rate pressures.	Revenue Growth Services Infrastructure Computing
2023 Q1	Regional Banks The banking crisis in March highlighted risks in less diversified banks with concentrated deposit bases. The strategy's bias toward larger banks with strong deposit bases provided defensive positioning during the selloff.	Banking Deposits Credit Financials Crisis
	AI Microsoft's launch of Bing AI targeted directly at Alphabet's core search business prompted position trimming. The rapid adoption of ChatGPT and other generative AI products requires close monitoring and active position management.	Technology Search Innovation Disruption
	Medical Devices The selloff in healthcare provided opportunities to add to Becton Dickinson, which maintains strong hospital customer positioning with differentiated consumable offerings and regulatory hurdles protecting existing solutions.	Healthcare Hospitals Equipment Consumables
	Pharmaceuticals Initiated new position in McKesson, the leading distributor of pharmaceuticals with the largest specialty drug and oncology business in the US. Expects low double-digit earnings growth from operations, acquisitions, and share repurchases.	Healthcare Distribution Specialty Oncology

QUARTER

THEMES

Value

Value leadership broadened meaningfully with Russell 1000 Value Index positive and roughly 1,200 bps ahead of growth as markets rotated away from mega cap concentration. The strategy's anchoring in high-quality companies with durable moats was rewarded in the quarter's shift in market leadership.

Value Quality Moats

AI

Microsoft traded down on worries over higher-than-expected AI capex and delays in monetizing its AI backlog. Despite timing and perception issues, managers maintain strong conviction given accelerating AI workload monetization as capacity comes online and strengthening traction in higher-margin software offerings like M365 Copilot.

AI Cloud Software

Oil

Energy companies surged as the U.S.-Iran conflict pushed up oil prices. The portfolio benefited from overweights to energy with positive contributions from ConocoPhillips, Chevron, and Enterprise Products Partners LP.

Oil Energy Geopolitical

Industrials

Industrials stocks got a boost from a return to positive territory for the ISM Manufacturing PMI. XPO benefited from ongoing improvements in service quality, mix and pricing. Deere delivered a 20% earnings beat with better than expected large agriculture orders suggesting this year may be the cyclical trough.

Industrials Manufacturing Cyclical

Travel

Managers redeployed capital into Booking, viewing it as a durable, high-quality travel platform with a strong competitive position. They believe its role in bookings, cancellations and customer service would remain hard to disintermediate, seeing an opportunity after valuations had been pressured by AI-related concerns.

Travel Platforms Quality

2025 Q3

AI

The massive surge in spending on artificial intelligence continues to bolster chip providers like Broadcom, whose custom-designed chips are gaining broader adoption with hyperscalers. Taiwan Semiconductor leads in advanced semiconductor manufacturing with dominant market share in leading-edge nodes being adopted by nearly all major AI companies. The Strategy neutralized the powerful AI trade by initiating positions in Taiwan Semiconductor and Amazon.com while increasing Alphabet position.

Semiconductors Hyperscalers Manufacturing Chips Technology

Semiconductors

Semiconductor holdings led performance with Broadcom, Intel and Taiwan Semiconductor driving gains. Broadcom benefits from custom-designed chips gaining adoption with hyperscalers as complement to Nvidia's GPUs. Taiwan Semiconductor dominates advanced manufacturing in 3nm and 2nm nodes. Intel benefited from investments and partnerships providing confidence in capitalizing on domestic manufacturing needs.

Manufacturing Technology AI Foundries Equipment

Quality

The Strategy focuses on high-quality companies with resilient, durable business models that can compound returns over time regardless of short-term macro or geopolitical noise. Managers upgraded quality by exiting U.S. Bancorp and initiating PNC position, believing PNC has greater ability to execute on revenues and expenses. Tighter underwriting implemented across portfolio with specific KPIs monitored.

Durability Resilience Underwriting Execution Business Models

Value

The current market regime offers significant value opportunities as overall market breadth improves and capital flows shift away from high-flying growth stocks toward overlooked, high-quality businesses. The Strategy sees the investment landscape shifting with inflation and interest rates structurally higher, creating opportunities in undervalued names.

Opportunities Growth Breadth Flows Undervalued

2025 Q2

AI

The Strategy broadened AI semiconductor exposure through new positions in Broadcom and Marvell Technology. Broadcom enables better participation in custom silicon chips for AI computing, working with large technology companies to develop custom silicon expected to grow alongside robust demand for Nvidia's GPUs. Marvell designs chips and networking equipment that power AI technologies and has a strong interconnect business, though its AI revenue ramp has been slower than peers.

Semiconductors Custom Silicon GPUs Networking Interconnect

Semiconductors

The portfolio was active in semiconductor positioning, trimming Taiwan Semiconductor due to geopolitical tensions and adding Broadcom and Marvell Technology. The managers focused on companies designing chips for AI computing and networking equipment. Marvell's valuation has compressed significantly and now trades at a growth-adjusted discount to AI semiconductor peers, providing an attractive entry point.

AI Custom Silicon Networking Valuation Geopolitical Risk

Cloud

ServiceNow was added as a new position, providing an end-to-end software-as-a-service platform to help enterprise customers automate business processes. The company has a monetizable generative AI product being adopted by customers. Broadcom's cloud infrastructure software business is expected to continue growing given its entrenched position within enterprises.

SaaS Enterprise Software Automation Generative AI Infrastructure

2025 Q1

Value

The managers have taken advantage of expensive momentum-driven stocks to reallocate capital into areas where valuations are more reasonable yet fundamentals remain stable and defensive. The valuation gap between growth and value had reached historically extreme levels, making a reversion long overdue.

Value Valuations Growth Defensive

AI

The managers remain very selective with AI exposures, believing some market froth is likely to fade. They exited Oracle due to stretched valuations and exposure to unprofitable AI startups, while maintaining Broadcom for its AI-focused custom ASIC solutions.

AI Technology Semiconductors Cloud Valuations

Utilities

The managers increased exposure to utilities due to rising electricity demand, highly stable cash flows and attractive valuations. However, holdings in Edison International and Sempra were negatively impacted by Southern California wildfires and regulatory changes.

Utilities Electricity Regulated Defensive

Defense

Defense names RTX and Northrop Grumman led performance as geopolitical tensions remained elevated. Both companies have moved away from fixed-price contracts and should see margin expansion. European defense spending increases should benefit U.S. defense primes.

Defense Geopolitical Margins Spending

GLP1

The managers initiated a position in Novo Nordisk, seeing a buying opportunity after a significant pullback. They believe the GLP-1 market remains vast and that Novo alongside Eli Lilly is well-positioned to maintain a duopolistic structure for years to come.

GLP1 Diabetes Obesity Pharmaceuticals

2024 Q4

Value

The Strategy follows a diversified, valuation-sensitive approach investing in high-quality franchises within durable, growing markets at reasonable valuations. The managers saw a large valuation divergence in 2024 that provided opportunities as high-quality companies weren't attracting capital. They maintained valuation discipline by trimming positions in American Express and JPMorgan Chase due to strong performance.

Valuation Quality Franchises Discipline

Financials

The Strategy maintained an overweight in financials with focus on payments and consumer finance companies like Visa, Capital One and American Express. These firms, along with banks such as JPMorgan Chase and Bank of America, gained from economic resilience, robust consumer spending, yield curve normalization and anticipated reduction in regulatory pressures from the incoming administration.

Banks Payments Consumer Finance Regulatory

Semiconductor Cycle

The embedded semiconductor industry is experiencing a significant cyclical downturn as customers deplete inventories they had stockpiled during the COVID-era chip shortages. This negatively impacted Microchip Technology's near-term financials, but the managers believe its large customer base and sticky products will allow it to maintain pricing and market share once recovery materializes.

Semiconductors Inventory Cyclical Recovery

2024 Q3

Quality

The strategy focuses on high-quality, less commoditized and less cyclical stocks with strong franchise characteristics. These businesses generate higher returns and compound value at more sustainable rates than deeper value peers, though they tend to lag in very strong markets.

Franchise Returns Sustainable Defensive Moats

Value

The fund seeks dislocations between stock prices and underlying franchise values created by volatile markets. Recent market performance has created attractive entry points in high-quality companies the managers prefer.

Dislocation Undervalued Entry Points Discount Fair Value

Semiconductors

Intel faces pressure from softness in PC and server markets and competitive concerns, but the manager expects improved product positioning and market share gains in 2025. The fund also added Broadcom for its custom silicon business and VMware acquisition benefits.

Intel Broadcom Custom Silicon Product Cycle Market Share

2024 Q2

AI

The massive ramp up in AI spending has crowded out spending in other technology verticals, creating a market where AI winners enjoy strong multiple expansion while perceived AI losers are severely punished. The divergence in valuations between perceived AI winners and losers has created attractive opportunities where high-quality companies are being underappreciated.

Data Centers Technology Semiconductors Infrastructure Valuations

GLP1

McKesson is benefiting from the growth of GLP-1 medications for diabetes and obesity, with revenues from GLP-1s making up a sizable portion of recent growth in its U.S. pharmaceutical segment, albeit at relatively low profitability.

Pharmaceuticals Diabetes Medical Distribution Healthcare

Hydrogen

Air Products signed a 15-year agreement to supply TotalEnergies' European refineries with 70,000 tons of green hydrogen annually starting in 2030. The deal represents an important step as APD executes on a large backlog of major hydrogen projects that can provide commercial scale green hydrogen to decarbonize heavy industry.

Energy Transition Decarbonization Industrial Gases Green Energy

Semiconductors

Core PC and server markets remain depressed due to AI spending crowding out traditional enterprise infrastructure. However, aging infrastructure and ongoing growth of IT workloads should lead to a cyclical recovery in both markets, particularly benefiting Intel despite current headwinds.

Semiconductor Cycle PCs Servers Technology Infrastructure

2024 Q1

AI

Amazon and Microsoft both saw acceleration in cloud revenues and communicated increasing run rates for their AI-driven services. Meta is focusing on high-return AI investments while maintaining cost discipline.

Cloud Services Investment Revenue Growth

Cloud

Cloud revenues accelerated at both Amazon and Microsoft during the quarter. The secular growth drivers for cloud services remain intact despite higher interest rate pressures.

Revenue Growth Services Infrastructure Computing

2023 Q1

Regional Banks

The banking crisis in March highlighted risks in less diversified banks with concentrated deposit bases. The strategy's bias toward larger banks with strong deposit bases provided defensive positioning during the selloff.

Banking Deposits Credit Financials Crisis

AI

Microsoft's launch of Bing AI targeted directly at Alphabet's core search business prompted position trimming. The rapid adoption of ChatGPT and other generative AI products requires close monitoring and active position management.

Technology Search Innovation Disruption

Medical Devices

The selloff in healthcare provided opportunities to add to Becton Dickinson, which maintains strong hospital customer positioning with differentiated consumable offerings and regulatory hurdles protecting existing solutions.

Healthcare Hospitals Equipment Consumables

Pharmaceuticals

Initiated new position in McKesson, the leading distributor of pharmaceuticals with the largest specialty drug and oncology business in the US. Expects low double-digit earnings growth from operations, acquisitions, and share repurchases.

Healthcare Distribution Specialty Oncology

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Jan 1, 1970	Fund Letters	ClearBridge Investments Large Cap Value	SCHW	Charles Schwab Corporation	Financials	Investment Banking & Brokerage	Bear	NASDAQ	asset-liability mismatch, Brokerage, Cash Sorting, Duration risk, FDIC Insured, fee income, investment banking, regulatory scrutiny	Login
Jan 1, 1970	Fund Letters	ClearBridge Investments Large Cap Value	AVGO\|LLY\|MRK\|NVDA\|ORCL\|PGR	Progressive Corporation	Financials	Property & Casualty Insurance	Bull	NYSE	Auto Insurance, Conservative Portfolio, Data Analytics, market share gains, Pricing power, Property & Casualty Insurance, Telematics, underwriting	Login
Jan 1, 1970	Fund Letters	ClearBridge Investments Large Cap Value	ADI\|BDX\|FI\|FND\|HAS\|META\|MSFT\|MSI\|ORCL\|TMO	Meta Platforms Inc	Communication Services	Interactive Media & Services	Bull	NASDAQ	cost discipline, Interactive Media, monetization, Platform Ecosystem, Scale Advantages, social media, strong balance sheet, user engagement	Login
Jan 1, 1970	Fund Letters	ClearBridge Investments Large Cap Value	ADI\|BDX\|FI\|FND\|HAS\|META\|MSFT\|MSI\|ORCL\|TMO	Becton Dickinson and Company	Health Care	Health Care Equipment	Bull	NYSE	Acquisitions Integration, Healthcare Equipment, Hospital Customers, margin expansion, Medical devices, Pricing power, regulatory barriers, supply chain	Login
Jan 1, 1970	Fund Letters	ClearBridge Investments Large Cap Value	MCK	McKesson Corporation	Health Care	Health Care Distributors	Bull	NYSE	cash flow generation, Healthcare Distributors, oligopoly, Oncology, Pharmaceutical Distribution, share repurchases, Specialty Drugs, Technology Services	Login
Mar 31, 2026	Fund Letters	ClearBridge Investments Large Cap Value	XPO	XPO Logistics	Trucking	Ground Transportation	Bull	New York Stock Exchange	Industrials, Logistics, Ltl, manufacturing, Transportation	Login
Mar 31, 2026	Fund Letters	ClearBridge Investments Large Cap Value	DE	Deere & Company	Farm & Heavy Construction Machinery	Agricultural & Farm Machinery	Bull	New York Stock Exchange	Agricultural Equipment, Construction Equipment, Cyclical Recovery, heavy machinery, manufacturing	Login
Mar 31, 2026	Fund Letters	ClearBridge Investments Large Cap Value	JNJ	Johnson & Johnson	Drug Manufacturers - General	Pharmaceuticals	Bull	New York Stock Exchange	cancer treatment, healthcare, Inflammation, Patent cliff, pharmaceuticals	Login
Mar 31, 2026	Fund Letters	ClearBridge Investments Large Cap Value	MSFT	Microsoft Corporation	Software - Infrastructure	Systems Software	Bull	NASDAQ	Artificial Intelligence, Azure, Cloud computing, SaaS, Software	Login
Mar 31, 2026	Fund Letters	ClearBridge Investments Large Cap Value	COF	Capital One Financial Corporation	Credit Services	Consumer Finance	Bull	New York Stock Exchange	banking, consumer finance, credit cards, Cyclical, financial services	Login
Mar 31, 2026	Fund Letters	ClearBridge Investments Large Cap Value	AXP	American Express Company	Credit Services	Consumer Finance	Bull	New York Stock Exchange	consumer finance, Credit Underwriting, High quality, Payments, premium cards	Login
Mar 31, 2026	Fund Letters	ClearBridge Investments Large Cap Value	TMUS	T-Mobile US Inc	Telecom Services	Wireless Telecommunication Services	Bull	NASDAQ	essential services, Network Quality, recurring revenue, telecommunications, Wireless	Login
Mar 31, 2026	Fund Letters	ClearBridge Investments Large Cap Value	BKNG	Booking Holdings Inc	Travel Services	Hotels, Restaurants & Leisure	Bull	NASDAQ	Consumer Discretionary, network effects, Online Travel, platform, Travel Booking	Login
Mar 31, 2026	Fund Letters	ClearBridge Investments Large Cap Value	HON	Honeywell International Inc	Conglomerates	Industrial Conglomerates	Bull	NASDAQ	Aerospace, Automation, Corporate Transformation, industrial conglomerate, Quantum Computing	Login
Jul 4, 2025	Fund Letters	Robert Feitler	TSM	Taiwan Semiconductor Manufacturing Company Limited	Information Technology	Semiconductors	Bear	NYSE	CapEx, Concentration, Geopolitics, Risk, semiconductors	Login
Jul 4, 2025	Fund Letters	Robert Feitler	AVGO	Broadcom Inc.	Information Technology	Semiconductors	Bull	NASDAQ	AI, cashflow, Pricing, semiconductors, Software	Login
Jul 4, 2025	Fund Letters	Robert Feitler	MRVL	Marvell Technology, Inc.	Information Technology	Semiconductors	Bull	NASDAQ	AI, growth, Interconnect, Networking, valuation	Login
Jul 4, 2025	Fund Letters	Robert Feitler	NOW	ServiceNow, Inc.	Information Technology	Systems Software	Bull	NYSE	Automation, enterprise, Margins, SaaS, Workflows	Login
Jul 4, 2025	Fund Letters	Robert Feitler	AIR FP	Airbus SE	Industrials	Aerospace & Defense	Bull	Euronext Stock Exchange	Aerospace, backlog, cashflow, Defense, Travel	Login
Jul 4, 2025	Fund Letters	Robert Feitler	LIN	Linde plc	Materials	Industrial Gases	Bull	NYSE	cashflow, Contracts, Gases, Industrial, Pricing	Login
Jul 4, 2025	Fund Letters	Robert Feitler	TGT	Target Corporation	Consumer Discretionary	General Merchandise Stores	Bear	NYSE	Demand, Discretionary, Margins, retail, tariffs	Login
Jul 4, 2025	Fund Letters	Robert Feitler	ICLR	ICON plc	Health Care	Life Sciences Tools & Services	Bear	NASDAQ	Funding, Normalization, Outsourcing, Pipelines, visibility	Login
Jul 4, 2025	Fund Letters	Robert Feitler	ADBE	Adobe Inc.	Information Technology	Application Software	Bear	NASDAQ	AI, Competition, Penetration, Pricing, Software	Login
-	Fund Letters	ClearBridge Investments Large Cap Value	PH	Parker-Hannifin Corporation	Industrials	Industrial Machinery	Bull	NYSE	Aerospace, Defense, Diversified Industrial, High-Quality Franchise, industrial machinery, Longer-Cycle Business, Motion Control Technologies, Peer Discount	Login
-	Fund Letters	ClearBridge Investments Large Cap Value	INTC	Intel Corporation	Information Technology	Semiconductors & Semiconductor Equipment	Bull	NASDAQ	AI, Cyclical, market share, P&C, Product Positioning, Refresh Cycle, semiconductors, Server, turnaround, Value	Login
-	Fund Letters	ClearBridge Investments Large Cap Value	MCK	McKesson Corporation	Health Care	Health Care Distributors	Bull	NYSE	defensive, Drug Distribution, healthcare, Low Economic Sensitivity, Medical-Surgical, Oncology, Optum Contract, Pharmaceutical, Post-COVID Normalization	Login
-	Fund Letters	ClearBridge Investments Large Cap Value	SHW	The Sherwin-Williams Company	Materials	Specialty Chemicals	Bull	NYSE	Best-in-Class Operator, High-Quality Franchise, Housing, market share gains, Paint, Pricing power, Raw Material Deflation, specialty chemicals	Login
-	Fund Letters	ClearBridge Investments Large Cap Value	APD	Air Products and Chemicals, Inc.	Materials	Industrial Gases	Bull	NYSE	asset divestitures, capital allocation, China exposure, Green Hydrogen, Industrial Gases, NEOM Project, operational focus, Succession Planning	Login
-	Fund Letters	ClearBridge Investments Large Cap Value	ORLY	O'Reilly Automotive, Inc.	Consumer Discretionary	Automotive Retail	Bull	NASDAQ	Auto parts, Automotive Retail, Best-in-Class Operator, Consumer Discretionary, Counter-cyclical, high-ROIC, market share gains, Reasonable Valuation	Login
-	Fund Letters	ClearBridge Investments Large Cap Value	SBUX	Starbucks Corporation	Consumer Discretionary	Restaurants	Bull	NASDAQ	Breakfast Consumption, Brian Niccol, Coffee, customer experience, Global Brand, Normalized Basis, operational expertise, Restaurants, turnaround	Login
-	Fund Letters	ClearBridge Investments Large Cap Value	AVGO	Broadcom Inc.	Information Technology	Semiconductors & Semiconductor Equipment	Bull	NASDAQ	AI, custom silicon, Durable Growth, Low-20s P/E, Mid-Teens EPS Growth, semiconductors, Subscription-Based, VMware Acquisition	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Jan 1, 1970

Fund Letters

ClearBridge Investments Large Cap Value

SCHW

Charles Schwab Corporation

Financials

Investment Banking & Brokerage

Bear

NASDAQ

asset-liability mismatch, Brokerage, Cash Sorting, Duration risk, FDIC Insured, fee income, investment banking, regulatory scrutiny

Jan 1, 1970

Fund Letters

ClearBridge Investments Large Cap Value

AVGO|LLY|MRK|NVDA|ORCL|PGR

Progressive Corporation

Financials

Property & Casualty Insurance

Bull

NYSE

Auto Insurance, Conservative Portfolio, Data Analytics, market share gains, Pricing power, Property & Casualty Insurance, Telematics, underwriting

Jan 1, 1970

Fund Letters

ClearBridge Investments Large Cap Value

ADI|BDX|FI|FND|HAS|META|MSFT|MSI|ORCL|TMO

Meta Platforms Inc

Communication Services

Interactive Media & Services

Bull

NASDAQ

cost discipline, Interactive Media, monetization, Platform Ecosystem, Scale Advantages, social media, strong balance sheet, user engagement

Jan 1, 1970

Fund Letters

ClearBridge Investments Large Cap Value

ADI|BDX|FI|FND|HAS|META|MSFT|MSI|ORCL|TMO

Becton Dickinson and Company

Health Care

Health Care Equipment

Bull

NYSE

Acquisitions Integration, Healthcare Equipment, Hospital Customers, margin expansion, Medical devices, Pricing power, regulatory barriers, supply chain

Jan 1, 1970

Fund Letters

ClearBridge Investments Large Cap Value

MCK

McKesson Corporation

Health Care

Health Care Distributors

Bull

NYSE

cash flow generation, Healthcare Distributors, oligopoly, Oncology, Pharmaceutical Distribution, share repurchases, Specialty Drugs, Technology Services

Mar 31, 2026

Fund Letters

ClearBridge Investments Large Cap Value

XPO

XPO Logistics

Trucking

Ground Transportation

Bull

New York Stock Exchange

Industrials, Logistics, Ltl, manufacturing, Transportation

Mar 31, 2026

Fund Letters

ClearBridge Investments Large Cap Value

Deere & Company

Farm & Heavy Construction Machinery

Agricultural & Farm Machinery

Bull

New York Stock Exchange

Agricultural Equipment, Construction Equipment, Cyclical Recovery, heavy machinery, manufacturing

Mar 31, 2026

Fund Letters

ClearBridge Investments Large Cap Value

JNJ

Johnson & Johnson

Drug Manufacturers - General

Pharmaceuticals

Bull

New York Stock Exchange

cancer treatment, healthcare, Inflammation, Patent cliff, pharmaceuticals

Mar 31, 2026

Fund Letters

ClearBridge Investments Large Cap Value

MSFT

Microsoft Corporation

Software - Infrastructure

Systems Software

Bull

NASDAQ

Artificial Intelligence, Azure, Cloud computing, SaaS, Software

Mar 31, 2026

Fund Letters

ClearBridge Investments Large Cap Value

COF

Capital One Financial Corporation

Credit Services

Consumer Finance

Bull

New York Stock Exchange

banking, consumer finance, credit cards, Cyclical, financial services

Mar 31, 2026

Fund Letters

ClearBridge Investments Large Cap Value

AXP

American Express Company

Credit Services

Consumer Finance

Bull

New York Stock Exchange

consumer finance, Credit Underwriting, High quality, Payments, premium cards

Mar 31, 2026

Fund Letters

ClearBridge Investments Large Cap Value

TMUS

T-Mobile US Inc

Telecom Services

Wireless Telecommunication Services

Bull

NASDAQ

essential services, Network Quality, recurring revenue, telecommunications, Wireless

Mar 31, 2026

Fund Letters

ClearBridge Investments Large Cap Value

BKNG

Booking Holdings Inc

Travel Services

Hotels, Restaurants & Leisure

Bull

NASDAQ

Consumer Discretionary, network effects, Online Travel, platform, Travel Booking

Mar 31, 2026

Fund Letters

ClearBridge Investments Large Cap Value

HON

Honeywell International Inc

Conglomerates

Industrial Conglomerates

Bull

NASDAQ

Aerospace, Automation, Corporate Transformation, industrial conglomerate, Quantum Computing

Jul 4, 2025

Fund Letters

Robert Feitler

TSM

Taiwan Semiconductor Manufacturing Company Limited

Information Technology

Semiconductors

Bear

NYSE

CapEx, Concentration, Geopolitics, Risk, semiconductors

Jul 4, 2025

Fund Letters

Robert Feitler

AVGO

Broadcom Inc.

Information Technology

Semiconductors

Bull

NASDAQ

AI, cashflow, Pricing, semiconductors, Software

Jul 4, 2025

Fund Letters

Robert Feitler

MRVL

Marvell Technology, Inc.

Information Technology

Semiconductors

Bull

NASDAQ

AI, growth, Interconnect, Networking, valuation

Jul 4, 2025

Fund Letters

Robert Feitler

NOW

ServiceNow, Inc.

Information Technology

Systems Software

Bull

NYSE

Automation, enterprise, Margins, SaaS, Workflows

Jul 4, 2025

Fund Letters

Robert Feitler

AIR FP

Airbus SE

Industrials

Aerospace & Defense

Bull

Euronext Stock Exchange

Aerospace, backlog, cashflow, Defense, Travel

Jul 4, 2025

Fund Letters

Robert Feitler

LIN

Linde plc

Materials

Industrial Gases

Bull

NYSE

cashflow, Contracts, Gases, Industrial, Pricing

Jul 4, 2025

Fund Letters

Robert Feitler

TGT

Target Corporation

Consumer Discretionary

General Merchandise Stores

Bear

NYSE

Demand, Discretionary, Margins, retail, tariffs

Jul 4, 2025

Fund Letters

Robert Feitler

ICLR

ICON plc

Health Care

Life Sciences Tools & Services

Bear

NASDAQ

Funding, Normalization, Outsourcing, Pipelines, visibility

Jul 4, 2025

Fund Letters

Robert Feitler

ADBE

Adobe Inc.

Information Technology

Application Software

Bear

NASDAQ

AI, Competition, Penetration, Pricing, Software

Fund Letters

ClearBridge Investments Large Cap Value

Parker-Hannifin Corporation

Industrials

Industrial Machinery

Bull

NYSE

Aerospace, Defense, Diversified Industrial, High-Quality Franchise, industrial machinery, Longer-Cycle Business, Motion Control Technologies, Peer Discount

Fund Letters

ClearBridge Investments Large Cap Value

INTC

Intel Corporation

Information Technology

Semiconductors & Semiconductor Equipment

Bull

NASDAQ

AI, Cyclical, market share, P&C, Product Positioning, Refresh Cycle, semiconductors, Server, turnaround, Value

Fund Letters

ClearBridge Investments Large Cap Value

MCK

McKesson Corporation

Health Care

Health Care Distributors

Bull

NYSE

defensive, Drug Distribution, healthcare, Low Economic Sensitivity, Medical-Surgical, Oncology, Optum Contract, Pharmaceutical, Post-COVID Normalization

Fund Letters

ClearBridge Investments Large Cap Value

SHW

The Sherwin-Williams Company

Materials

Specialty Chemicals

Bull

NYSE

Best-in-Class Operator, High-Quality Franchise, Housing, market share gains, Paint, Pricing power, Raw Material Deflation, specialty chemicals

Fund Letters

ClearBridge Investments Large Cap Value

APD

Air Products and Chemicals, Inc.

Materials

Industrial Gases

Bull

NYSE

asset divestitures, capital allocation, China exposure, Green Hydrogen, Industrial Gases, NEOM Project, operational focus, Succession Planning

Fund Letters

ClearBridge Investments Large Cap Value

ORLY

O'Reilly Automotive, Inc.

Consumer Discretionary

Automotive Retail

Bull

NASDAQ

Auto parts, Automotive Retail, Best-in-Class Operator, Consumer Discretionary, Counter-cyclical, high-ROIC, market share gains, Reasonable Valuation

Fund Letters

ClearBridge Investments Large Cap Value

SBUX

Starbucks Corporation

Consumer Discretionary

Restaurants

Bull

NASDAQ

Breakfast Consumption, Brian Niccol, Coffee, customer experience, Global Brand, Normalized Basis, operational expertise, Restaurants, turnaround

Fund Letters

ClearBridge Investments Large Cap Value

AVGO

Broadcom Inc.

Information Technology

Semiconductors & Semiconductor Equipment

Bull

NASDAQ

AI, custom silicon, Durable Growth, Low-20s P/E, Mid-Teens EPS Growth, semiconductors, Subscription-Based, VMware Acquisition

TICKER	COMMENTARY
XPO	XPO, a less-than-truckload transportation provider, which is also benefiting from ongoing improvements in service quality, mix and pricing.
DE	Deere, meanwhile, delivered a 20% earnings beat, helped by outperformance in both its small agriculture (e.g., compact and utility tractors) and its construction and forestry segments. Investors were encouraged that large agriculture (machines for commercial farming) orders were better than expected, suggesting there could be upside to Deere's 2026 guidance, and this year may be the cyclical trough.
JNJ	Relative strength in health care was led by Johnson & Johnson, which delivered strong quarterly results; investors have become more confident that cancer and inflammation medicine growth and recent deals will allow the company to grow through the loss of Stelara exclusivity.
MSFT	Negative sentiment for software weighed on our sole software position, Microsoft, which also traded down on worries over higher-than-expected AI capex and delays in monetizing its AI backlog. Despite some timing and perception issues, we maintain strong conviction in Microsoft, given durable Azure demand, accelerating AI workload monetization as capacity comes online and strengthening traction in higher-margin software offerings like M365 Copilot, which deepen customer engagement and reinforce Microsoft's competitive moat. We added to our position on weakness.
COF	In financials, Capital One shares were lower amid broad sector weakness, driven by investor concerns around weakening macro conditions potentially leading to a credit cycle; deal-related overhang tied to the company's Brex acquisition also weighed on near-term sentiment.
AXP	American Express detracted as regulatory uncertainty around credit card pricing and renewed attention on the Credit Card Competition Act pressured sentiment across the payments and card issuer space, including Capital One, despite stable underlying fundamentals.
TMUS	We initiated a position in T-Mobile: our core view is that it has the best network at the lowest cost in the U.S., and that should insulate it from competition from other wireless entrants (such as cable players). We also believe it should be economically insensitive given the nature of the industry (high recurring revenues and mobile wireless being an essential service for consumers).
CMCSA	At the same time, we exited Comcast, whose core broadband business looks increasingly pressured from new entrants including fixed wireless, fiber entrants and potentially SpaceX through its Starlink internet service.
DIS	We also exited Disney, as we are increasingly concerned that much of its growth is price driven in both its parks and experiences segment and its streaming business, while its legacy linear media assets continue to be secularly challenged.
BKNG	We redeployed the capital into Booking, which we view as a durable, high-quality travel platform with a strong competitive position. We believe its role in bookings, cancellations and customer service would remain hard to disintermediate, and we saw an opportunity to own the stock after valuations had been pressured by AI-related concerns.
HON	In industrials we bought Honeywell, partially funding it by selling out of a marginal holding in Otis, which has been going through execution issues that made us question management quality. The appeal in Honeywell was better risk-reward and a more attractive mix of quality, defensiveness and upside relative to other industrial names we own. Honeywell is undergoing a transformation as it breaks up the company into an aerospace business, an automation company and a quantum computing company. We believe the stock today undervalues the assets as they separate into three more focused and independently traded entities over the coming months.
OTIS	In industrials we bought Honeywell, partially funding it by selling out of a marginal holding in Otis, which has been going through execution issues that made us question management quality.

TICKER

COMMENTARY

XPO

XPO, a less-than-truckload transportation provider, which is also benefiting from ongoing improvements in service quality, mix and pricing.

Deere, meanwhile, delivered a 20% earnings beat, helped by outperformance in both its small agriculture (e.g., compact and utility tractors) and its construction and forestry segments. Investors were encouraged that large agriculture (machines for commercial farming) orders were better than expected, suggesting there could be upside to Deere's 2026 guidance, and this year may be the cyclical trough.

JNJ

Relative strength in health care was led by Johnson & Johnson, which delivered strong quarterly results; investors have become more confident that cancer and inflammation medicine growth and recent deals will allow the company to grow through the loss of Stelara exclusivity.

MSFT

Negative sentiment for software weighed on our sole software position, Microsoft, which also traded down on worries over higher-than-expected AI capex and delays in monetizing its AI backlog. Despite some timing and perception issues, we maintain strong conviction in Microsoft, given durable Azure demand, accelerating AI workload monetization as capacity comes online and strengthening traction in higher-margin software offerings like M365 Copilot, which deepen customer engagement and reinforce Microsoft's competitive moat. We added to our position on weakness.

COF

In financials, Capital One shares were lower amid broad sector weakness, driven by investor concerns around weakening macro conditions potentially leading to a credit cycle; deal-related overhang tied to the company's Brex acquisition also weighed on near-term sentiment.

AXP

American Express detracted as regulatory uncertainty around credit card pricing and renewed attention on the Credit Card Competition Act pressured sentiment across the payments and card issuer space, including Capital One, despite stable underlying fundamentals.

TMUS

We initiated a position in T-Mobile: our core view is that it has the best network at the lowest cost in the U.S., and that should insulate it from competition from other wireless entrants (such as cable players). We also believe it should be economically insensitive given the nature of the industry (high recurring revenues and mobile wireless being an essential service for consumers).

CMCSA

At the same time, we exited Comcast, whose core broadband business looks increasingly pressured from new entrants including fixed wireless, fiber entrants and potentially SpaceX through its Starlink internet service.

DIS

We also exited Disney, as we are increasingly concerned that much of its growth is price driven in both its parks and experiences segment and its streaming business, while its legacy linear media assets continue to be secularly challenged.

BKNG

We redeployed the capital into Booking, which we view as a durable, high-quality travel platform with a strong competitive position. We believe its role in bookings, cancellations and customer service would remain hard to disintermediate, and we saw an opportunity to own the stock after valuations had been pressured by AI-related concerns.

HON

In industrials we bought Honeywell, partially funding it by selling out of a marginal holding in Otis, which has been going through execution issues that made us question management quality. The appeal in Honeywell was better risk-reward and a more attractive mix of quality, defensiveness and upside relative to other industrial names we own. Honeywell is undergoing a transformation as it breaks up the company into an aerospace business, an automation company and a quantum computing company. We believe the stock today undervalues the assets as they separate into three more focused and independently traded entities over the coming months.

OTIS

In industrials we bought Honeywell, partially funding it by selling out of a marginal holding in Otis, which has been going through execution issues that made us question management quality.

Ticker	Put/Call	Amount Bought	Shares Bought	% Change	Weight %
No Recent Buys Data

Ticker

Put/Call

Amount Bought

Shares Bought

% Change

Weight %

No Recent Buys Data

Ticker	Put/Call	Amount Sold	Shares Sold	% Change	Weight %	Status
No Recent Sells Data

Ticker

Put/Call

Amount Sold

Shares Sold

% Change

Weight %

Status

No Recent Sells Data

Industry	Prev Quarter %	Current Quarter %	Change
No industry data available

Industry

Prev Quarter %

Current Quarter %

Change

No industry data available

Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 31st March 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

Value

AI

Oil

Industrials

Travel

AI

Semiconductors

Quality

Value

AI

Semiconductors

Cloud

Value

AI

Utilities

Defense

GLP1

Value

Financials

Semiconductor Cycle

Quality

Value

Semiconductors

AI

GLP1

Hydrogen

Semiconductors

AI

Cloud

Regional Banks

AI

Medical Devices

Pharmaceuticals

Investor Pitches

Current Portfolio as of ( 31st March 2026 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

Robert Feitler Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

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ClearBridge Investments Large Cap Value