| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
The ClearBridge Small Cap Growth Strategy generated strong absolute returns of over 21% gross but underperformed its Russell 2000 Growth Index benchmark, which gained 25.6% in the second quarter. The quarter saw exceptional performance driven by AI enthusiasm, with investors seeking exposure across memory, optical, networking and high-performance compute capacity. The Strategy benefited from AI-exposed semiconductor holdings like Allegro MicroSystems and Lattice Semiconductor, as well as infrastructure enablers like Bloom Energy. However, idiosyncratic weakness in select health care and financial holdings, software pressure from AI disruption concerns, and under-exposure to high-beta, high-momentum AI stocks limited relative performance. The managers added 13 new positions during an unusually large Russell rebalance, including Axsome Therapeutics in biotechnology, MaxLinear in semiconductors, and Solaris Energy Infrastructure to capture data center power demand. Looking forward, they see potential for continued small cap outperformance as the AI opportunity extends beyond infrastructure builders to companies using AI effectively, though they acknowledge rapid disruption and geopolitical volatility create a complicated backdrop. Their bottom-up discipline focuses on separating durable growth from temporary momentum.
The ClearBridge Small Cap Growth Strategy seeks to identify small cap companies with durable, distinctive growth drivers and the capacity to invest in significant opportunities, maintaining bottom-up discipline to separate durable growth from temporary momentum even as market narratives move faster than fundamentals.
The managers see potential for continued small cap outperformance given investor appetite for undiscovered growth stories, innovation, an AI investment cycle with related opportunities and risks, and a possible cyclical recovery. They note that the next phase of opportunity may extend beyond companies building AI infrastructure to companies using AI effectively across transportation, biotechnology, financial services and other industries. However, they acknowledge that debates around AI capital spending and which elements of the supply chain capture the most economic return will persist, and leadership can change quickly as narratives often move faster than fundamentals. Their bottom-up discipline is designed to separate durable growth from temporary momentum in this environment.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 14 2026 | 2026 Q2 | ALGM, AXSM, BE, BWXT, ESI, HLNE, INSM, LSCC, MTDR, MXL, PODD, TGTX, VRNS, WIX, XMTR | AI, Biotechnology, Data centers, growth, semiconductors, small caps, technology | - | ClearBridge Small Cap Growth posted strong 21% gross returns but underperformed the benchmark's 25.6% gain as AI enthusiasm drove exceptional semiconductor performance. The Strategy benefited from AI-exposed holdings in semiconductors and data center infrastructure but faced headwinds from software disruption concerns and idiosyncratic health care weakness. Managers added 13 positions during a large Russell rebalance, positioning for the next phase of AI adoption beyond infrastructure. |
| Jan 15 2026 | 2025 Q4 | BE, BETA, BHVN, DUOL, DYN, ELF, GKOS, IBP, INSM, LRN, NVS, PEN, PTGX, QLYS, RBC, SGRY, SSD, TREX, VRNS, WIX | active management, AI, Biotechnology, Capital markets, earnings, growth, small cap, Valuations |
PTGX SIMP |
ClearBridge's small cap growth strategy underperformed in Q4 amid biotech rally and IT earnings disappointments, but managers are optimistic for 2026. Small cap earnings growth is set to exceed large caps for the first time in over a decade, while market leadership should broaden beyond AI infrastructure. Attractive valuations and accelerating capital markets support their constructive outlook. |
| Oct 9 2025 | 2025 Q3 | BE, BPMC, BROS, BWXT, CGON, CLBT, CRDO, FTAI, ICLR, INSM, KTOS, KVYO, MEDP, MIRM, ORCL, RGTI, RNA, RYTM, SHFT, WING | AI, Biotechnology, defense, Energy Transition, growth, semiconductors, small cap, software |
BE US KD US |
ClearBridge Small Cap Growth underperformed as the Russell 2000 Growth surged 12.2% driven by lowest-quality names. Consumer discretionary and software holdings weighed on performance while industrials and health care contributed positively. Managers added seven new positions and remain cautiously optimistic about market broadening favoring higher-quality businesses with idiosyncratic growth drivers. |
| Jul 29 2025 | 2025 Q2 | BBIO, BOOT, BPMC, BWX, CASH, DUOL, ICLR, INSM, MIRM, PD, ROAD, RYTM, SNY, SPT, TARS, UMBF, UTI, VYGR, WING, WIX | AI, Biotechnology, growth, nuclear, small caps, Space, technology, Trade Policy | - | ClearBridge Small Cap Growth modestly underperformed during an unprecedented quarter of tariff-driven volatility followed by sharp recovery. The quality-focused strategy added 11 new positions while benefiting from nuclear, biotech, and AI themes. Despite market optimism, management teams remain cautious about policy uncertainty. Small cap valuations near historic lows suggest attractive opportunity ahead. |
| Apr 5 2025 | 2025 Q1 | ARCH, BJ, CNMD, CWAN, ELF, FOUR, GERN, GKOS, GLBE, HE, HIMS, INTA, ITCI, KVYO, PYCR, RBC, RKLB, TNC, VRNS, WIX | AI, Biotech, growth, small cap, stock selection, Trade Policy, volatility |
GKOS RKLB ARCH HIMS GERN |
ClearBridge Small Cap Growth Strategy outperformed despite volatile markets driven by AI concerns and policy uncertainty. Strong stock selection in IT and industrials, improved biotech positioning, and successful new additions like Glaukos and Rocket Lab USA drove performance. Multiple portfolio holdings were acquired at premiums. Managers remain focused on idiosyncratic growth opportunities despite anticipated near-term volatility from policy changes. |
| Jan 9 2025 | 2024 Q4 | AZPN, BE, CERT, CHX, CWAN, FLR, FOUR, MOD, OSCR, PCVX, SGRY, SHLS, TGTX, VIAV, VRNS, WING, WIX, XMTR, XPO, ZETA | AI, growth, healthcare, industrials, M&A, Onshoring, small caps, technology |
BE OSCR TGTX CWAN FLR MOD |
Small cap growth strategy navigated challenging 2024 with active portfolio turnover, adding 23 new positions. Despite AI theme dominance hurting relative performance, managers see 2025 setup as favorable with four-year underperformance creating opportunity, Fed easing continuing, and potential deregulation/M&A acceleration under new administration driving broader market participation beyond narrow mega-cap leadership. |
| Sep 30 2024 | 2024 Q3 | ALGM, ANF, BJ, CVGW, CYRX, ENV, EYE, FOUR, FOXF, FTAI, HLNE, INTA, KVYO, MPWR, OS, PJT, TREX, VRNS, WTFC, ZETA | Biotechnology, consumer, Fed Cuts, financials, growth, Rotation, small caps, software | - | ClearBridge Small Cap Growth underperformed in Q3 as small caps rotated but strategy was underweight the leading areas like biotech and lower quality names. Consumer pressures hurt several holdings while financials and software provided offsets. Team added four new investments and remains optimistic on small cap outlook given Fed cuts, earnings growth expectations, and attractive valuations. |
| Jul 18 2024 | 2024 Q2 | BPMC, CHX, DH, FN, GLBE, HEES, ICLR, INTA, MODN, MPWR, MSFT, MSTR, NVDA, PCVX, ROAD, SMCI, TREX, VRNS, WIX, XPRO | AI, Concentration, growth, semiconductors, small caps, software, technology, underperformance | - | Small cap growth stocks face historic underperformance creating significant value opportunities. AI overhang pressures software while semiconductors outperform. Strategy added six new investments despite Q2 underperformance. Extreme market concentration with eight stocks driving entire Russell 2000 Growth benchmark. Managers focus on high-quality idiosyncratic growth opportunities while balancing risk in volatile environment dominated by narrow AI theme. |
| Apr 23 2024 | 2024 Q1 | CNMD, DOOR, DUOL, ELF, FWRD, IART, INSM, INTA, IRDM, MEDP, MSTR, OC, OMCL, RDNT, SMCI, TMO, TREX, VKTX, WING, XPO | AI, Biotechnology, growth, healthcare, small cap, technology |
VKTX CNMD RDNT MEDP INSM INTA DUOL ELF |
ClearBridge Small Cap Growth underperformed due to extreme benchmark concentration in Super Micro Computer and MicroStrategy, which drove over half of Russell 2000 Growth returns. The strategy added nine new positions including GLP-1 play Viking Therapeutics while existing holdings like Wingstop and XPO delivered strong idiosyncratic returns. Managers remain focused on quality growth opportunities despite macro uncertainties. |
| Jan 13 2024 | 2023 Q4 | BLKB, CHX, EYE, FOUR, FOXF, IBP, LSCC, MIRM, MPWR, NARI, NVDA, SILK, SMCI, STAA, TREX, VRNS, WHD, WING, WMT | AI, Biotech, growth, healthcare, industrials, M&A, small cap, technology |
NARI BLKB MIRM IBP |
ClearBridge Small Cap Growth underperformed in Q4 2023 due to healthcare and consumer discretionary weakness, but actively repositioned with 16 new investments. Following extreme small cap underperformance, the manager sees favorable setup for 2024 with attractive valuations, infrastructure spending acceleration, and increased M&A activity driving opportunities in their growth-focused portfolio. |
| Aug 10 2023 | 2023 Q3 | AEL, ALGM, BJ, CASY, FWRD, HUBS, IRDM, KVYO, LNTH, MGRC, MOG.A, NCNO, NEWR, NMIH, NOVT, ODD, OMCL, PEN, PODD, SGFY, SHOP, SYNH, WHD, XPO | Banking, growth, healthcare, Medical Devices, small caps, software, technology |
KVYO NCNO MGRC LNTH |
Small cap growth strategy underperformed in Q3 2023 due to rising yields and healthcare sector weakness from GLP-1 treatment implications. Despite headwinds, managers initiated eight new investments including Klaviyo and nCino while maintaining disciplined approach. Strategy remains focused on building appropriately capitalized positions in companies with substantial long-term growth opportunities through patient capital deployment. |
| Jun 30 2023 | 2023 Q2 | AEL, ALGM, AZPN, BE, BJ, BWXT, CHGG, EYE, FIGS, FOXF, HAIN, IART, IAS, MPWR, PD, PEN, SGRE, SGRY, SILK, SPT, STAA, TREX, TRUP, XPO | Biotechnology, growth, Quality, semiconductors, small caps, software, underperformance | - | ClearBridge's small cap growth strategy underperformed in Q2 due to biotech rally where they lack exposure, software booking slowdowns, and semiconductor corrections. Key detractors included BJ's, Fox Factory, Trupanion, and Bloom Energy facing company-specific challenges. Managers repositioned selectively while maintaining conviction in their quality-focused discipline, expecting performance recovery as in prior difficult periods. |
| Mar 31 2023 | 2023 Q1 | DH, ESI, LTHM | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
AIAI enthusiasm drove the quarter's exceptional performance, with investors seeking exposure across memory, optical, networking, CPUs and high-performance compute capacity. The Strategy benefited from AI-exposed semiconductor holdings like Allegro MicroSystems and Lattice Semiconductor, which gained from AI server architecture content. AI infrastructure enablers like Bloom Energy also contributed, as data centers address grid access constraints using alternative fuel cells. |
Data Centers Semiconductors Infrastructure Memory Networking |
SemiconductorsSemiconductor holdings posted exceptional gains with the benchmark semiconductor segment up 98% for the quarter. The Strategy's semiconductor positions like Allegro MicroSystems and Lattice Semiconductor benefited from recovery in industrial and automotive end markets alongside increasing content gains in AI server architectures. MaxLinear was added as a new position, expected to deliver strong earnings growth from R&D investments supporting AI transceiver market opportunities. |
AI Memory Automotive Industrial Transceivers | |
BiotechnologyBiotech representation increased materially in the Russell rebalance, and the sector had a strong quarter overall. TG Therapeutics posted strong gains following better sales for its multiple sclerosis treatment alongside positive clinical data for a subcutaneous version. The Strategy added three new biotech positions: Axsome Therapeutics, Kymera Therapeutics, and Praxis Precision Medicines, with Axsome highlighted for its large commercial opportunity in Major Depressive Disorder and Alzheimer's Disease Agitation. |
CNS Rare Diseases Pharmaceuticals Drug Development | |
Data CentersData center power demand is accelerating, creating opportunities for infrastructure enablers. Bloom Energy's alternative fuel cells are increasingly used to help data centers address grid access constraints. Solaris Energy Infrastructure was added as a new position, providing behind-the-meter modular natural-gas power generation for AI data centers through a power-as-a-service model, supported by grid reliability issues and long lead times for traditional generation. |
AI Energy Infrastructure Grid Power Natural Gas | |
Small CapsSmall cap securities continued to recover from one of their longest losing streaks on record, with the Russell 2000 Growth Index up over 77% from Liberation Day lows. The first half saw one of the strongest periods of relative performance for small caps versus large caps since 2001. Relative valuation versus large caps sits in the 21st percentile, suggesting further runway to reverse multi-year small cap underperformance. |
Valuation Relative Performance Recovery | |
CybersecuritySecurity software holdings posted strong performance during the quarter. Varonis Systems, a data governance software provider, was buoyed by potential demand tailwinds tied to increasing AI utilization as well as rumors of potential takeover interest. The data governance capabilities are increasingly relevant as AI adoption accelerates across enterprises. |
Data Privacy AI Software M&A | |
Energy InfrastructureThe Strategy added Solaris Energy Infrastructure, which provides behind-the-meter modular natural-gas power generation for AI data centers and other users through a power-as-a-service model. Accelerating data-center power demand, grid reliability issues and long lead times for traditional generation support demand for its solutions, which offer high-margin contracted cash flows and attractive returns. |
Data Centers Natural Gas Power AI | |
SoftwareAI disruption concerns weighed on several software holdings including Wix.com, a website creation and business management platform, amid fears of AI-native competition and the investment required to develop its own AI capabilities. Similar disintermediation concerns affected alternative asset managers that have funded software go-private transactions, including Hamilton Lane. These pressures offset gains in security software. |
AI Disruption SaaS Competition | |
| 2025 Q4 |
DividendsThe Fund focuses on equity securities where many stocks are expected to pay dividends as part of its income-seeking strategy. The equity allocation emphasizes companies with shareholder-oriented management and dividend-paying characteristics. |
Income Yield Distributions |
FinancialsThe Fund is currently substantially invested in the Financials sector, with performance closely tied to developments in this industry. The concentration creates exposure to regulatory changes and interest rate movements affecting financial companies. |
Banks Insurance Interest Rates | |
| 2025 Q3 |
AIAI infrastructure investments are narrowly driving economic growth alongside retail enthusiasm for high-growth-potential markets. The Strategy sees extreme performance divergence between perceived AI winners and losers in software holdings, with concerns around potential AI disintermediation affecting software stocks despite strong earnings beats. |
Infrastructure Software Data Centers Disintermediation Growth |
DefenseAerospace and defense holdings showed particular strength with healthy end markets and new business opportunities. The Strategy added Kratos Defense & Security Systems, focused on unmanned aerial drone systems, hypersonic missiles and missile defense, seeing potential for significant growth and margin expansion. |
Aerospace Drones Missiles Defense Budget Manufacturing | |
BiotechnologyHealth care was a positive contributor with biotech gaining approximately 22% during the quarter due to positive trial results, M&A activity and improving investor sentiment. Contributions came from companies delivering on positive data and commercial catalysts, with rebounding performance in previously beaten-down picks and shovels providers. |
Clinical Trials M&A Data Pharmaceuticals Development | |
SemiconductorsThe Strategy added Credo Technology Group, a semiconductor connectivity company providing solutions for data transfer inside data centers. Credo has leading market share within a niche industry and is benefiting from unprecedented AI infrastructure buildout and exponential growth in data transfer needs. |
Connectivity Data Transfer Infrastructure Market Share Growth | |
Energy TransitionBloom Energy saw exceptionally strong performance as its alternative power solutions are increasingly viewed as a time-to-market advantage for electricity-starved data centers, including securing an initial data center deal with Oracle. This reflects growing demand for alternative power solutions in the AI infrastructure buildout. |
Alternative Power Data Centers Electricity Infrastructure Solutions | |
| 2025 Q2 |
AIGenerative AI represents a generational potential to reshape numerous aspects of business and daily life, with a rapidly evolving technological paradigm of winners and losers. Duolingo is leveraging AI to offer enhanced language learning to consumers. |
Artificial Intelligence Machine Learning Language Learning Technology Innovation |
BiotechnologyThe strategy improved its relative underweight to biotech in 2024, which has been a positive contributor to relative performance. Benefits came from an acquisition (Blueprint Medicines), positive clinical data readouts (Insmed) and commercial sales execution (Mirum Pharmaceuticals). |
Biopharma Clinical Trials Drug Development M&A Rare Diseases | |
SpaceInnovation in exciting growth markets includes space, with the capital markets gradually thawing. Voyager Technologies is a space and defense supplier well-positioned to benefit from increases in both defense spending and space activities in the U.S. from both government and private sectors. |
Aerospace Defense Government Spending Private Space | |
NuclearBWX Technologies is benefiting from renewed interest in nuclear technologies as an alternative power source, representing a longstanding position that contributed to performance. |
Nuclear Power Alternative Energy Clean Energy | |
Trade PolicyLiberation Day tariff announcements drove significant market volatility, with the Russell 2000 Growth Index down 12% before recovering. The market has grown somewhat accustomed to trade threats and taken advantage of signs of possible trade deals to price in more benign outcomes. |
Tariffs Trade Wars Policy Uncertainty Market Volatility | |
| 2025 Q1 |
AIThe DeepSeek model architecture caused investors to question potential returns on investment and monetization of generative AI initiatives, leading to air coming out of the sector-crossing narrative and investment tailwind around generative AI. The combination of concerns around AI reporting precipitated a meaningful pullback in stocks. |
Generative AI DeepSeek Monetization Investment Returns |
Trade PolicyThe threat of tariffs and concerns around funding cuts have created uncertainty for buyers of goods and services. Policy and regulatory noise has hit a fever pitch as the new administration pursues its policy goals in rapid, sometimes contradictory fashion, with the pace of proposed change having a chilling impact on general investment and consumer activity. |
Tariffs Policy Changes Regulatory Uncertainty Investment Activity | |
BiotechnologyThe Strategy overcame the headwind from a still-sizable relative underweight in biotech, outperforming the benchmark with strong idiosyncratic stock performance. Six out of ten holdings in the industry were relative outperformers, with work undertaken in 2024 to improve the relative underweight being a positive contributor. |
Biotech Underweight Stock Selection Relative Performance | |
DefenseKarman Holdings is a defense company providing key systems to customers in the areas of hypersonics, missile defense and space. The company appreciated over 55% following its IPO before the managers took profits and exited the position. |
Hypersonics Missile Defense Space Systems Defense Contractors | |
TelehealthHims & Hers is a health care IT services company providing a consumer telehealth platform across a variety of men's and women's health categories, including weight loss, dermatology and mental health. The company offers an integrated experience with strong brand recognition and a convenient stigma-free value proposition to consumers. |
Consumer Telehealth Digital Health Weight Loss Mental Health | |
| 2024 Q4 |
AIThe unprecedented infrastructure buildout to support generative AI ambitions drove accelerating growth and expanding multiples across multiple sectors. This enthusiasm expanded from AI/chips to data center buildouts, HVAC equipment, service providers, and power solutions to support electricity demands of this generational product cycle. |
Data Centers Infrastructure Semiconductors Power HVAC |
Small CapsSmall cap stocks experienced a four-year losing streak, the longest ever recorded, with relative valuation models near historic lows. However, factors including length of underperformance, relative valuations, and forward earnings growth suggest potential for more enduring leadership rotation in 2025. |
Valuations Underperformance Rotation Earnings Growth | |
OnshoringPolitical and economic forces are likely to further support onshoring/reshoring trends as companies look to secure supply chains for geopolitical/tariff considerations and recognition of inventory and supply chain vulnerability. This should drive growth opportunities for select companies within industrials, IT, energy and materials sectors. |
Supply Chain Geopolitical Tariffs Industrials | |
Capital MarketsM&A and capital markets activity appear poised for an upward inflection with greater funding cost stability, deregulation and less stringent antitrust posture leading to further acceleration. IPO activity has been stagnant for multiple years, creating a backlog of high-quality candidates looking to test market appetite in 2025. |
M&A IPO Deregulation Antitrust | |
| 2024 Q3 |
Small CapsSmall cap stocks snapped an unprecedented losing streak versus large caps in Q3, with the Russell 2000 Growth Index up 8.41%. The rotation was initially catalyzed by higher Trump election odds and cooling inflation data supporting Fed rate cuts. Historically rate cuts have been positive for small caps, and with earnings growth for smaller caps set to eclipse large caps over the next two years, coupled with historic lows in relative valuations, conditions are aligning for better asset class performance. |
Russell 2000 Rotation Valuations Earnings Growth Rate Cuts |
BiotechnologyBiotech was one of the strongest performing areas in the benchmark with +11.38% returns in Q3. The strategy has made progress developing new ideas in biotech with strong performance from initial investments like Vaxcyte and Insmed, as well as commercial stories with multiple pipeline candidates like Mirum Pharmaceuticals. The team continues to identify further potential investment opportunities in the segment to manage the risk from biotech's increased weight in the benchmark. |
Pipeline Drug Development Commercial Benchmark Weight | |
Trade DownSeveral years of robust inflation and spending have taken their toll, particularly on low-income consumers and in big-ticket categories. Evidence includes a decelerating cosmetics market, anemic home renovation spending, restaurants declining to take price, and a notable shift to value-oriented channels like Walmart or Amazon. Management teams describe a more selective consumer who is allocating spend more thoughtfully and deferring certain purchases. |
Consumer Pressure Value Channels Selective Spending Big Ticket Low Income | |
| 2024 Q2 |
AIAI overhang is creating challenges for software budgets and mindshare diversion to AI hardware development versus other software priorities. Early enthusiasm around generative AI has benefited infrastructure providers supporting advanced computing requirements. As the cycle matures, businesses with durable recurring revenue models should outperform. |
Generative AI Infrastructure Computing Software Hardware |
SemiconductorsSemiconductor and technology hardware stocks have significantly outperformed software, with semiconductors up 8% and technology hardware up 40% year-to-date within the Russell 2000 Growth Index. The firm holds hardware investments like Monolithic Power and Fabrinet that have benefited from AI trends. |
Hardware Performance Outperformance Technology | |
Small CapsSmall cap stocks are experiencing their largest period of underperformance versus large caps to start a year in the last 51 years, creating significant relative value opportunities. The Russell 2000 Growth performance has been extremely narrow with just eight stocks supporting the entire benchmark performance. |
Underperformance Relative Value Concentration Benchmark | |
| 2024 Q1 |
AIAI infrastructure build-out has had a narrow set of beneficiaries, with enthusiasm for AI fueling atypical concentration and performance distortion in the benchmark. RadNet has invested heavily in newer AI applications that can provide an additional revenue stream while improving early identification of cancers. |
Infrastructure Healthcare Technology |
GLP1Viking Therapeutics has had positive Phase 2 data on a GLP-1/GIP agonist injectable candidate potentially differentiated in mechanism with encouraging results relative to existing approved/pipeline candidates. The company is also pursuing an oral obesity GLP-1/GIP treatment, given the strong growth potential in the obesity market. |
Obesity Diabetes Biotechnology | |
Small CapsThe strategy focuses on small cap growth investing, with the Russell 2000 Growth Index showing extreme concentration. Large has outperformed small, paced by growth over value across market capitalizations, creating challenges for small cap managers. |
Growth Concentration Underperformance | |
| 2023 Q4 |
AIGenerative artificial intelligence captured significant attention with OpenAI's ChatGPT driving massive investment in rival models and infrastructure build in data centers and GPU-heavy AI servers. Public market capital chased AI beneficiaries while selling perceived disrupted businesses, with most significant winners in large cap universe. |
Generative AI ChatGPT Data Centers GPU Infrastructure |
GLP1GLP-1 treatments for diabetes and obesity gained attention following August headlines about cardiovascular benefits. Media speculation covered far-reaching consequences of appetite suppression and fitness improvements. November SELECT study data provided more balanced impact assessment, while enthusiasm fueled biotech rally. |
Diabetes Obesity Cardiovascular Biotech Medical Device | |
Small CapsSmall cap stocks saw extreme relative underperformance versus large caps in 2023, representing the worst divergence since 1998-1999. With rate hikes likely behind and attractive valuations, conditions are aligning for small cap outperformance. Fourth quarter showed signs of rebound with Russell 2000 outpacing S&P 500. |
Russell 2000 Valuation Relative Performance Rate Hikes | |
Infrastructure SpendingSignificant infrastructure, stimulus and mega-project funding bills passed over recent years are showing signs that many public and private projects are poised to begin or accelerate in 2024. This should drive growth for industrial and technology markets. |
Stimulus Public Projects Industrial Technology | |
Biopharma M&AResurgence in biopharmaceutical M&A activity has fueled a rally in small biotech stocks. This represents an area of the market the strategy has historically avoided but is seeing increased activity. |
Biotech M&A Pharmaceuticals | |
| 2023 Q3 |
GLP1The early August revelation that GLP-1 diabetes and obesity treatment semaglutide has potentially important cardiovascular benefits led to pervasive selling across medical technology stocks. While longer-term implications were most pointed for diabetes stocks, reverberations were felt across cardiovascular, orthopedic and surgery-related stocks. |
Diabetes Obesity Medical Devices Cardiovascular Semaglutide |
E-commerceThe strategy initiated a position in Klaviyo, a founder-led software platform providing marketing automation solutions primarily to smaller e-commerce customers. Klaviyo leverages tight integration with Shopify and has experienced rapid growth in the sizable e-commerce market with opportunities for international expansion. |
Marketing Automation Shopify Software Digital Marketing SaaS | |
CloudThe portfolio added nCino, a founder-led modern banking cloud platform for commercial lending management. With a sticky vertical software-as-a-service model, the company has expanded into retail, mortgage and international markets and is positioned to expand margins as the banking backdrop normalizes. |
Banking Software SaaS Commercial Lending Vertical Software Financial Technology | |
| 2023 Q2 |
Small CapsThe Strategy focuses on small cap growth investing and was impacted by a lower-quality small cap rally during the quarter. The manager discusses Russell index rebalancing pressure affecting small cap performance and notes that sticking to investment discipline has historically led to relative performance recovery. |
Small Cap Russell 2000 Growth Rebalancing Quality |
BiotechnologySmall cap biotechnology stocks experienced significant moves during the quarter, buoyed by takeover announcements and large cap biopharmaceuticals hunting to fill product pipelines. The Russell index rebalance created forced buying of biotech stocks, which rose 18.5% during the quarter. |
Biotech M&A Takeovers Pipelines Pre-revenue | |
Enterprise SoftwareSoftware stocks experienced booking slowdowns as customers showed reticence to commit to incremental seats, contract duration, or new products during the macro slowdown. These are among the Strategy's largest and highest-growth, highest-confidence investments. |
Software SaaS Bookings Enterprise Growth | |
SemiconductorsSemiconductor stocks corrected after substantial first-quarter price moves, with companies like Allegro Microsystems and Monolithic Power rising approximately 50% in the first quarter. The manager believes these companies are share takers based on innovative design wins and exposure to growth end markets. |
Semiconductors Design Wins Share Gains Innovation Growth Markets |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 15, 2026 | Fund Letters | Aram Green | PTGX | Protagonist Therapeutics, Inc. | Health Care | Biotechnology | Bull | NASDAQ | Blockbuster, Clinical, Immunology, Oraldrugs, pipeline | Login |
| Jan 15, 2026 | Fund Letters | Aram Green | SIMP | Simpson Manufacturing Co., Inc. | Industrials | Building Products | Bull | New York Stock Exchange | Buildingproducts, compounding, Housing, Margins, marketshare | Login |
| Oct 9, 2025 | Fund Letters | Aram Green | BE US | Bloom Energy Corp. | Industrials | Electrical Equipment | Bull | NYSE | AI, data centers, Electrification, energy transition, Fuel cells, growth, Margins, valuation | Login |
| Oct 9, 2025 | Fund Letters | Aram Green | KD US | Kratos Defense & Security Solutions, Inc. | Information Technology | Aerospace & Defense | Bull | NASDAQ | Aerospace, backlog, Defense, Drones, growth, Hypersonic, Margins, valuation | Login |
| Mar 31, 2024 | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | VKTX | Viking Therapeutics | Health Care | Biotechnology | Bull | NASDAQ | biotechnology, Clinical development, GLP-1, Metabolic Diseases, NASH, Obesity, Phase 2, small-cap | Login |
| Mar 31, 2024 | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | CNMD | CONMED Corporation | Health Care | Health Care Equipment & Supplies | Bull | NASDAQ | Competitive Differentiation, Global Healthcare, market penetration, Medical devices, Orthopedic Surgery, Single-Use Products | Login |
| Mar 31, 2024 | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | RDNT | RadNet Inc | Health Care | Health Care Providers & Services | Bull | NASDAQ | acquisition growth, AI applications, Cancer Detection, diagnostic imaging, Healthcare Cost Reduction, Outpatient Care, Site of Care Shift | Login |
| Mar 31, 2024 | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | MEDP | Medpace Holdings Inc | Health Care | Life Sciences Tools & Services | Bull | NASDAQ | Above-Peer Growth, Biotech Services, cash flow generation, Clinical research, Cro, drug development, Outsourcing | Login |
| Mar 31, 2024 | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | INSM | Insmed Incorporated | Health Care | Biotechnology | Bull | NASDAQ | Approved Product, Blockbuster Potential, international expansion, Label Expansion, late-stage pipeline, Pulmonary Diseases, rare diseases | Login |
| Mar 31, 2024 | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | INTA | Intapp Inc | Information Technology | Software | Bull | NASDAQ | Compliance Solutions, CRM, cross-selling, ERP, Expanding Margins, financial services, professional services, vertical software | Login |
| Mar 31, 2024 | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | DUOL | Duolingo Inc | Consumer Discretionary | Interactive Media & Services | Bull | NASDAQ | freemium model, Language learning, Marketing efficiency, online learning, product innovation, Subscriber Conversion, Unit economics, User growth | Login |
| Mar 31, 2024 | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | ELF | e.l.f. Beauty Inc | Consumer Staples | Personal Products | Bull | NYSE | clean beauty, direct-to-consumer, Legacy Brand Disruption, market share gains, Mass Cosmetics, Online Presence, Professional Quality, Value Positioning | Login |
| - | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | BE | Bloom Energy | Industrials | Electrical Equipment | Bull | NYSE | AI data centers, alternative energy, electrical equipment, Fuel cells, Industrials, Power generation, Utilities Partnership | Login |
| - | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | OSCR | Oscar Health | Health Care | Health Care Services | Bull | NYSE | ACA Exchange, Geographic Expansion, Health Care Services, health insurance, managed care, Margin Improvement, market share gains | Login |
| - | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | TGTX | TG Therapeutics | Health Care | Biotechnology | Bull | NASDAQ | biotechnology, Briumvi, Chronic Disease, Commercial Stage, market share growth, multiple sclerosis, Pharmaceutical | Login |
| - | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | CWAN | Clearwater Analytics | Information Technology | Software | Bull | NASDAQ | Analytics Solutions, Cloud software, Investment Accounting, margin expansion, Revenue Growth, SaaS, vertical software | Login |
| - | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | FLR | Fluor | Industrials | Construction & Engineering | Bull | NYSE | construction, data centers, engineering, global scale, GLP-1 Manufacturing, Megaprojects, Mining, nuclear energy, Procurement | Login |
| - | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | MOD | Modine Manufacturing | Industrials | Machinery | Bull | NYSE | Air Quality, Climate Solutions, HVAC, Inflecting Demand, manufacturing, Margin Improvement, thermal management, Vehicle Equipment | Login |
| - | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | GKOS | Glaukos Corporation | Health Care | Health Care Equipment | Bull | NYSE | Blockbuster Product, Drug-Device Combination, Glaucoma, healthcare innovation, Medical devices, Ophthalmology | Login |
| - | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | RKLB | Rocket Lab USA Inc | Industrials | Aerospace & Defense | Bull | NASDAQ | Aerospace, founder-led, government contracts, Satellite Launch, Small Payloads, Space Economy, Spacecraft Manufacturing | Login |
| - | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | ARCH | Archrock Inc | Energy | Oil & Gas Equipment & Services | Bull | NYSE | Capacity Constrained, Compression Services, energy infrastructure, natural gas, Production Support, secular growth | Login |
| - | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | HIMS | Hims & Hers Health Inc | Health Care | Health Care Technology | Bull | NYSE | brand recognition, Consumer-health, digital health, Healthcare IT, Profitability Improvement, Revenue Growth, telehealth | Login |
| - | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | GERN | Geron Corporation | Health Care | Biotechnology | Bull | NASDAQ | biotechnology, Blood Cancer, Commercialized Drug, Oncology, Revenue Opportunity, Treatment Cycling, undervalued | Login |
| - | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | KVYO | Klaviyo | Information Technology | Application Software | Bull | NYSE | e-commerce, founder-led, growth, IPO, Marketing automation, SaaS, Shopify Integration | Login |
| - | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | NCNO | nCino | Information Technology | Application Software | Bull | NASDAQ | Banking Software, cloud platform, commercial lending, founder-led, margin expansion, SaaS, vertical software | Login |
| - | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | MGRC | McGrath RentCorp | Industrials | Trading Companies & Distributors | Bull | NASDAQ | capital allocation, Consolidation Play, Equipment Rental, industrial services, Modular Buildings, Portable Storage | Login |
| - | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | LNTH | Lantheus Holdings | Health Care | Pharmaceuticals | Bull | NASDAQ | diagnostic imaging, healthcare, Moat, Nuclear Medicine, pipeline, Radiopharmaceuticals, Therapeutic | Login |
| - | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | NARI | Inari Medical | Health Care Equipment & Services | Health Care Equipment | Bull | NASDAQ | Blood Clots, growth, healthcare innovation, market penetration, Medical Device, Vascular Intervention, Venous Thromboembolism | Login |
| - | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | BLKB | Blackbaud | Software & Services | Application Software | Bull | NASDAQ | Cloud software, Education, Fundraising, Nonprofit, operational efficiency, Pricing Model, Vertical SaaS | Login |
| - | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | MIRM | Mirum Pharmaceuticals | Pharmaceuticals, Biotechnology & Life Sciences | Biotechnology | Bull | NASDAQ | Cash Flow Breakeven, Commercial Stage, Label Expansion, Liver Conditions, Pediatric, pipeline, rare disease | Login |
| - | Fund Letters | ClearBridge Investments Small Cap Growth Strategy | IBP | Installed Building Products | Capital Goods | Building Products | Bull | NYSE | Building Products, Fragmented Industry, Insulation Installation, market consolidation, market share gains, Residential Commercial, Scale Advantages | Login |
| TICKER | COMMENTARY |
|---|---|
| INSM | Long-standing biotech holding Insmed gave up some of the prior year's strength driven by concerns around the pace of key drug Brinsupri's launch. We remain confident in the meaningful long-term peak sales potential and believe recent weakness has been overly punitive. |
| PODD | Insulet, the maker of insulin patch pumps, also detracted amid broad medtech weakness, minor product quality issues and rising concerns around potential future competition. |
| TGTX | TG Therapeutics, a commercial-stage biopharmaceutical company producing a multiple sclerosis treatment, posted strong gains following better sales for its key product alongside positive clinical data for a subcutaneous version that could expand its addressable market. |
| ALGM | We saw material gains in semiconductor holdings such as Allegro MicroSystems and Lattice Semiconductors, both of which benefited from recovery in previously depressed industrial and automotive end markets alongside increasing content gains in newer AI server architectures. |
| LSCC | We saw material gains in semiconductor holdings such as Allegro MicroSystems and Lattice Semiconductors, both of which benefited from recovery in previously depressed industrial and automotive end markets alongside increasing content gains in newer AI server architectures. |
| VRNS | Within security software, data governance software provider Varonis Systems was buoyed by potential demand tailwinds tied to increasing AI utilization, as well as rumors of potential takeover interest. |
| WIX | AI disruption concerns continued to weigh on several software holdings including Wix.com, a website creation, commerce and business management software platform, amid fears of AI-native competition and the investment required to develop its own AI capabilities. |
| HLNE | Similar disintermediation concerns affected alternative asset managers that have funded software go-private transactions, including Hamilton Lane. |
| BE | The Strategy saw strength in AI infrastructure enablers such as Bloom Energy, whose alternative fuel cells are increasingly used to help data centers address constraints in grid access. |
| ESI | Specialty chemicals and materials provider Element Solutions also rose, supported by cyclically recovering end markets and increasing semiconductor demand. |
| XMTR | Beyond AI tailwinds, Xometry, an online marketplace for on-demand manufactured parts, gained on continued acceleration in growth and profitability, as well as a new partnership with Siemens which should provide an incremental growth channel. |
| AXSM | Axsome Therapeutics, in the health care sector, is a high-growth, commercial-stage biotechnology company focused on central nervous systems disorders. We believe that its key drug, Auvelity, has a large commercial opportunity with approval in Major Depressive Disorder and recent expansion into Alzheimer's Disease Agitation. |
| MXL | MaxLinear, in the IT sector, is a fabless semiconductor company focused on high-speed communications networks, with deep radio frequency and signal processing expertise. We expect strong earnings growth as prior R&D investments support opportunities in the AI transceiver market. |
| MTDR | The primary detractors were Wix.com, Insmed, Matador Resources, Hamilton Lane and BWX Technologies. |
| BWXT | The primary detractors were Wix.com, Insmed, Matador Resources, Hamilton Lane and BWX Technologies. |
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