| 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 |
The letter outlines a balanced growth approach combining participation in AI-driven momentum with downside protection through diversified stock selection. Emphasis is placed on companies with… |
| QUARTER | THEMES | TAGS |
|---|
| 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 | New position in biotech company Alnylam Pharmaceuticals. |
| AVGO | During the quarter, we initiated a below-average weight position in leading semiconductor and infrastructure software company Broadcom. Broadcom's ongoing transformation from a provider of custom ASICs to a full rack-scale solutions vendor, including scale-up networking, marks a significant improvement in its strategic positioning compared to earlier in the year. This strategic evolution has been validated by recent product launches, such as the Scale-up Ethernet solution, and committed orders from major customers like Anthropic. |
| DLB | Exited audiovisual technology company Dolby where we had diminished conviction in the company's growth outlook. |
| DOCS | An overweight position in Doximity, Inc. (DOCS) detracted from performance. The stock declined following a quarterly earnings report signaling cautious guidance and uncertainty after recent healthcare policy changes. |
| ELF | e.l.f. Beauty's earnings report included a decline in core domestic sales growth and fiscal year guidance below expectations. We continue to hold the stock, as the company offers a strong product set addressing a favorable spending category, though additional progress is needed to restore positive fundamental and share-price performance. |
| 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. |
| HLT | New position in global hospitality company Hilton. |
| HOOD | Robinhood Markets, Inc. is a digital brokerage platform serving retail investors. Shares detracted during the quarter following robust performance over the first nine months of the year. While overall activity levels remain strong, Robinhood experienced some softening in customer engagement in November, with cryptocurrency trading volumes in particular declining on both a month-over-month and year-over-year basis. |
| MSGE | Madison Square Garden Entertainment was a positive contributor in the quarter. |
| MSGS | Madison Square Garden Sports was a positive contributor in the quarter. |
| ODFL | Rotated exposure from Old Dominion Freight Line, a leading less-than-truckload (LTL) carrier. |
| ONON | 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 | Shopify Inc. is a cloud-based software provider for multi-channel commerce. Shares rose 8.3% in the fourth quarter, finishing 2025 up 51.1% on strong financial results that outperformed Street expectations. The company is demonstrating rapid growth at scale with gross merchandise value (GMV) and revenues each growing over 30% year-on-year. |
| TEL | Longtime holding TE Connectivity benefitted in 2025 from continued demand growth in several of the markets in which it sells into, including: AI infrastructure and data center connectivity; energy and grid update cycling; and industrial automation. TE also acquired Richards Manufacturing earlier in the year, which helped strengthen the company's competitive position in industrial and utility markets, and raised the dividend throughout 2025. |
| TJX | 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 | TKO Group was a positive contributor in the quarter. |
| UNH | United Healthcare had its own challenges, with surprise losses, a complicated political situation, and leadership changes. |
| VRTX | Vertex Pharmaceuticals benefited from growing optimism around its kidney disease pipeline and continued to demonstrate the value of idiosyncratic, innovation-driven growth. |
| VST | On January 9, Meta Platforms unveiled a new agreement with Vistra—the largest generator of competitive electricity in the United States—as well as with TerraPower and Oklo. |
| XPO | Rotated into XPO, the fourth-largest LTL provider in North America. 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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