| 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 become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
GLP1Eli Lilly's portfolio of Mounjaro/Zepbound GLP-1/GIP drugs are important treatments for diabetic and non-diabetic obese patients. This drug class should become the standard of care for both diabetes and obesity and grow to at least a $150 billion category. The market is in early innings of uptake with adoption driving Lilly to nearly double revenues by 2030. |
Diabetes Obesity Standard Care Adoption Growth | |
HotelsHilton has a long runway for growth supported by continued mid- to high-single-digit net unit expansion. The company has strong margins and free cash flow conversion, enabling consistent return of capital through share buybacks. |
Hospitality Asset Light Franchising Travel | |
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 become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
| 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 | The largest 10 companies, by market capitalization, had reached 40.7% of the S&P 500 by the end of 2025, up from roughly 30% at the end of 2021. At the top of this list are Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Broadcom (AVGO), Meta (META), and Tesla (TSLA). Apple: Market capitalization near $4 trillion. A double requires creating a company larger than the size of Walmart, JPMorgan, and Pfizer combined. |
| 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 | Added 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. |
| GOOGL | I'm willing to go bankrupt rather than lose this race. Larry Page, co-founder of Google |
| 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 | Healthcare added meaningfully through Eli Lilly following a deal the company did with the US administration to reduce the price of its GLP-1 drugs in exchange for tariff relief. |
| MSFT | OpenAI's well-documented 'circular' funding with its business partners (NVIDIA, Microsoft, among others) is additional cause for concern. |
| NFLX | Netflix has built a durable economic moat around its vertically-integrated, globally-scaled streaming business. As the first company to establish a global subscription media platform within the $500 billion TV market, Netflix is now reaping the benefits of its early leadership. With more than 300 million members, Netflix enjoys the lowest content cost per subscriber in the industry. |
| 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. |
| TMO | Thermo Fisher Scientific was up on improved sentiment toward the health care sector. |
| VRTX | Vertex Pharmaceuticals benefited from growing optimism around its kidney disease pipeline and continued to demonstrate the value of idiosyncratic, innovation-driven growth. |
| 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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