| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
ClearBridge Growth Strategy delivered its third consecutive quarter of outperformance in Q4 2025, demonstrating the benefits of a balanced approach to growth investing. The strategy participated in early-quarter momentum from AI-related exposures while providing downside protection as volatility increased later in the period. Strong stock selection across information technology and communication services drove outperformance, with notable contributions from Shopify, Broadcom, and TE Connectivity. The portfolio reflects a more balanced expression of growth, combining steady compounders with disruptive growth names across diversified sectors. The managers executed disciplined portfolio management, adding new positions in Vistra, Alnylam Pharmaceuticals, and Hilton while exiting holdings with diminished conviction. Looking forward, markets remain resilient but volatile, with AI continuing to represent a powerful long-term opportunity despite early beneficiaries already seeing significant gains. The strategy maintains its opportunistic approach, emphasizing balance between offensive growth potential and defensive characteristics to navigate continued volatility and identify durable winners beyond broad market trends.
A balanced, high active share approach to growth investing that combines steady compounders providing downside protection with disruptive growth names that capture upside, emphasizing companies investing in innovation and executing against long-term growth opportunities.
Markets remain resilient, but volatility has increased as momentum-driven areas cooled and stock-level dispersion widened, reinforcing the importance of disciplined stock selection and a balanced approach to portfolio construction. The managers remain opportunistic while staying committed to a bottom-up, high active share, and long-term oriented approach.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 12 2026 | 2025 Q4 | ALNY, AVGO, DLB, DOCS, ELF, FCX, HLT, HOOD, MSGE, MSGS, ODFL, ONON, SHOP, TEL, TJX, TKO, UNH, VRTX, VST, XPO | AI, balance, growth, innovation, semiconductors, technology, volatility |
SHOP ELF |
ClearBridge Growth Strategy achieved third consecutive quarter of outperformance through balanced portfolio construction combining AI momentum exposure with defensive growth names. Strong stock selection in technology and communication services drove results. Strategy maintains disciplined approach with opportunistic capital allocation, positioning for continued volatility while capturing long-term growth opportunities beyond momentum-driven themes. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
OilOil represents the cheapest major asset class globally, trading at near-record lows relative to gold despite balanced fundamentals. The closure of the Straits of Hormuz has created the largest supply shock in industry history, with 20 million barrels per day disrupted. Non-OPEC supply growth is slowing dramatically, with U.S. shale production plateauing outside the Permian Basin. |
Crude Oil Brent WTI Shale OPEC |
Natural GasNatural gas ranks in the 99.5th percentile of historical undervaluation relative to equities. U.S. production growth has concentrated entirely in the Permian Basin, with other shale regions declining. Once the Permian's current gas production surge runs its course, supply growth should plateau and eventually decline, setting the stage for materially higher prices. |
Henry Hub LNG Permian Shale Gas | |
SilverSilver surged 51% in Q4 and over 140% for the year, staging a dramatic catch-up rally relative to gold. This magnitude of silver outperformance has historically marked important turning points, suggesting a sell signal for precious metals in the short term. The rally parallels previous episodes in 1973, 1979, 2011, and 2020 that preceded corrections. |
Silver Gold Ratio Precious Metals | |
CopperCopper markets have moved back into surplus with exchange inventories rising to 1.2 million tonnes, levels last seen in 2003 when copper traded below $0.90 per pound. Despite strong performance in 2025, the persistent rise in inventories suggests the market has entered a prolonged period of surplus, shifting the short-term outlook to bearish. |
Copper Base Metals Inventories | |
Platinum Group MetalsPGMs continued their powerful advance with platinum and palladium each surging 28% in Q4. Policy reversals in both the U.S. and Europe are unwinding the aggressive push toward electric vehicles, with the Trump administration repealing California's emissions standards and the EU stepping back from a full ICE ban. This undermines the bearish narrative that assumed rapid decline in internal combustion engines. |
Platinum Palladium Auto Catalysts Electric Vehicles | |
GoldGold advanced 13% in Q4 and approximately 65% for the year, continuing its strong performance. However, silver's dramatic catch-up rally has triggered a historical sell signal for gold. While gold remains the only commodity trading at real all-time highs, the extreme outperformance by silver suggests precious metals may face a short-term correction. |
Gold Precious Metals Monetary Policy | |
UraniumUranium prices were largely unchanged during the quarter despite surging demand meeting a fragile supply base. The uranium section is mentioned as a key topic but detailed analysis is deferred to the full commentary section. |
Uranium Nuclear Energy Transition |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 12, 2026 | Fund Letters | Brian Angerame | SHOP | Shopify Inc. | Information Technology | Internet Services & Infrastructure | Bull | New York Stock Exchange | ecommerce, Enterprises, Margins, monetization, Platforms | Login |
| Jan 12, 2026 | Fund Letters | Brian Angerame | ELF | e.l.f. Beauty, Inc. | Consumer Staples | Personal Care Products | Bull | New York Stock Exchange | Consumption, Cosmetics, Pricing, recovery, tariffs | Login |
| TICKER | COMMENTARY |
|---|---|
| ALNY | These included new positions in merchant power producer Vistra, biotech company Alnylam Pharmaceuticals and global hospitality company Hilton, among others. |
| AVGO | Broadcom, a leading semiconductor company and long-term holding, continued to execute well amid strong demand for custom silicon supporting AI workloads. We also continued to use our profitable larger positions in Broadcom and Robinhood Markets to opportunistically fund more attractively valued holdings. On an individual stock basis, the biggest contributors to relative returns were Vertex Pharmaceuticals, Broadcom, Freeport-McMoRan, TE Connectivity and an underweight to Roblox. |
| DLB | Staying true to our sell discipline, we also exited a number of holdings where we had diminished conviction in the company's growth outlook such as health care provider UnitedHealth Group and audio visual technology company Dolby. |
| DOCS | In health care, Doximity, a digital platform serving medical professionals, traded lower as higher-beta growth stocks within health care experienced renewed volatility. The largest detractors from relative returns were e.l.f Beauty, Doximity, Robinhood Markets and a lack of exposure to Rocket Lab and Expedia. |
| ELF | Following a period of strong performance, shares of e.l.f. Beauty, a cosmetics company focused on affordable, digitally native products, declined as sales growth was hurt by management's decision to stop shipments to retailers that were slow to pass through tariff-related price increases. That said, we are encouraged that consumption trends for the brand remain healthy and management is already seeing shipment growth recover in the current quarter. The largest detractors from relative returns were e.l.f Beauty, Doximity, Robinhood Markets and a lack of exposure to Rocket Lab and Expedia. |
| FCX | Most recently this included adds to Freeport-McMoRan, a global copper producer and one of our top contributors for the quarter, following a price drawdown related to an operational incident late in the third quarter. We believe management handled the situation effectively, and the dislocation reinforced our view that duration can be an advantage when owning high-quality assets tied to long-term secular demand. On an individual stock basis, the biggest contributors to relative returns were Vertex Pharmaceuticals, Broadcom, Freeport-McMoRan, TE Connectivity and an underweight to Roblox. |
| HLT | These included new positions in merchant power producer Vistra, biotech company Alnylam Pharmaceuticals and global hospitality company Hilton, among others. |
| HOOD | We also continued to use our profitable larger positions in Broadcom and Robinhood Markets to opportunistically fund more attractively valued holdings. The largest detractors from relative returns were e.l.f Beauty, Doximity, Robinhood Markets and a lack of exposure to Rocket Lab and Expedia. |
| MSGE | For example, a number of portfolio holdings in sports and live media, such as Madison Square Garden Sports, Madison Square Garden Entertainment and TKO Group, were positive contributors in the quarter. |
| MSGS | For example, a number of portfolio holdings in sports and live media, such as Madison Square Garden Sports, Madison Square Garden Entertainment and TKO Group, were positive contributors in the quarter. |
| ODFL | Within industrials, for instance, we rotated our exposure in the fourth quarter from Old Dominion Freight Line, a leading less-than-truckload (LTL) carrier, into XPO, the fourth-largest LTL provider in North America. |
| ONON | Our consumer performance also benefited from the recent addition of On Holding, a premium athletic footwear and apparel company gaining share globally. On Holding delivered an impressive quarter punctuated by strong growth in international markets, such as China, as well as accelerating growth from apparel. |
| SHOP | Within IT, Shopify, an e-commerce platform that enables merchants to operate and scale digital storefronts, benefited from continued adoption by larger enterprises and improving monetization across its ecosystem. |
| TEL | TE Connectivity, an electronic component manufacturer specializing in connectivity and sensor solutions, also contributed, supported by secular trends in its automotive and industrial businesses. On an individual stock basis, the biggest contributors to relative returns were Vertex Pharmaceuticals, Broadcom, Freeport-McMoRan, TE Connectivity and an underweight to Roblox. |
| TJX | In the consumer discretionary sector, TJX Companies, an off-price retailer, delivered solid third-quarter results and had a strong start to the fourth quarter as better merchandise availability yielded broader and higher-quality assortments that supported traffic, same-store sales and earnings growth. |
| TKO | For example, a number of portfolio holdings in sports and live media, such as Madison Square Garden Sports, Madison Square Garden Entertainment and TKO Group, were positive contributors in the quarter. |
| UNH | Staying true to our sell discipline, we also exited a number of holdings where we had diminished conviction in the company's growth outlook such as health care provider UnitedHealth Group and audio visual technology company Dolby. |
| VRTX | Likewise, within health care, top individual contributor Vertex Pharmaceuticals benefited from growing optimism around its kidney disease pipeline and continued to demonstrate the value of idiosyncratic, innovation-driven growth. On an individual stock basis, the biggest contributors to relative returns were Vertex Pharmaceuticals, Broadcom, Freeport-McMoRan, TE Connectivity and an underweight to Roblox. |
| VST | These included new positions in merchant power producer Vistra, biotech company Alnylam Pharmaceuticals and global hospitality company Hilton, among others. |
| XPO | Within industrials, for instance, we rotated our exposure in the fourth quarter from Old Dominion Freight Line, a leading less-than-truckload (LTL) carrier, into XPO, the fourth-largest LTL provider in North America. We remain mindful of the still-challenging macro environment for freight and see greater idiosyncratic growth potential at XPO. Under new leadership, the company is improving service levels, pricing discipline and margins, leaving more room for outperformance should macro malaise persist. |
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