| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 0% | 0% |
ClearBridge's Small Cap Growth Strategy underperformed in Q4 2025 as biotech rallied 28.1% while their IT holdings faced earnings disappointments, though they remain encouraged by improving contributions from newer investments. The strategy was active with 29 new positions and 19 exits, redeploying capital into businesses with idiosyncratic growth levers. Despite another challenging year for active managers with less than 20% of small cap growth strategies outperforming, the managers are optimistic about 2026. For the first time in over a decade, small caps exceeded large caps in earnings growth in Q3, with forecasts showing small cap earnings will handily exceed large caps in 2026. The managers expect a broadening of market leadership beyond AI infrastructure to traditional industries, with AI productivity benefits becoming more visible across sectors. Capital markets are accelerating with improving IPO activity and rebounding M&A volumes. With relative valuations still attractive and the asset class positioned for stronger performance, they believe the prolonged period of factor dislocation sets the stage for improved forward returns.
Small cap growth stocks are positioned for stronger performance in 2026 as earnings growth is forecasted to exceed large caps, relative valuations remain attractive, and market leadership is expected to broaden beyond the narrow AI infrastructure theme that has dominated recent years.
The manager is optimistic about the 2026 backdrop for small cap growth stocks after several years of narrow leadership and extreme performance dispersion. They expect a broadening of growth leadership across traditional industries and believe AI productivity benefits will become more visible across sectors. With small cap earnings growth set to eclipse large cap peers and relative valuations at attractive levels, they believe the asset class is poised for stronger performance.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| 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 |
|---|---|---|
| 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 | 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 | 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 |
| 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 | 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 | 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 | 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 | INTA | Intapp Inc | Information Technology | Software | Bull | NASDAQ | Compliance Solutions, CRM, cross-selling, ERP, Expanding Margins, financial services, professional services, 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 | 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 | 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 | 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 | 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 | 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 |
| - | 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 | 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 | 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 | 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 | 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 | 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 | 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 | 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 | 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 | LNTH | Lantheus Holdings | Health Care | Pharmaceuticals | Bull | NASDAQ | diagnostic imaging, healthcare, Moat, Nuclear Medicine, pipeline, Radiopharmaceuticals, Therapeutic | Login |
| TICKER | COMMENTARY |
|---|---|
| BE | Bloom Energy is a provider of solid oxide fuel cells that play a critical role in delivering clean, reliable, always on power at scale. AI data centers require an enormous amount of power and one of the key challenges to date has been the inability of power grids to supply the necessary electricity to meet the constant and growing demands from AI workloads. Bloom's Energy Server fuel cells help address this issue, generating cost-efficient, reliable power onsite, converting fuels like natural gas, biogas and hydrogen into electricity without combustion. During the quarter, the company announced better than expected results with added optimism from a $5B partnership with Brookfield as the preferred onsite power provider for the company's global AI factories. |
| BETA | BETA Technologies is an aerospace and defense company developing electric aircraft, propulsion systems and charging infrastructure for government, logistics and commercial applications. Its vertically integrated model, lower operating cost structure and focus on conventional takeoff aircraft provides multiple avenues for long-term growth. |
| DUOL | I have followed the company closely since the IPO since my wife was an avid user, not wanting to break her streak in learning Italian. I thought growth would drop off a cliff after COVID as happened with many other companies, and yet, quarter after quarter the company continued to execute. In fact, there are only four companies I can find that have grown revenues greater than 30% for at least the last 20 quarters in a row – MercadoLibre, Axon, Hims, and Duolingo. To have that growth endurance, you've got to be doing something right! Well, the stock was down almost 70% after the valuation got far too rich and management made it very clear they were prioritizing learning over monetization for 2026. That is the right call in my opinion, considering what the core competency of the company is. Duolingo shouldn't be thought of as a language learning app, it's an engagement machine that happens to educate. In service of its mission to make education widely available, it built the data-driven muscle of engaging users. To learn anything, the most difficult part is motivation and that is what Duolingo is good at. In fact, almost 40% of monthly users log into the app every day. For context, Snapchat is at 50%! You're telling me that an app that teaches you Spanish almost has the same level of engagement as the app where teens do all of their communication? As the company broadens its education subjects like math, music, chess, and other areas, retention should increase even more. If you get bored of learning a language, you can hop over to play some chess. And AI will allow the company to create better content for their current subjects and accelerate the broadening of the platform. Paired with the engagement muscle, Duolingo very well could become a must-have app for learning all sorts of things. This vision will take time but it's actually the exact vision of the CEO/founder. The main bear cases are AI translation and that no one actually learns anything. On the latter, it's up to the user. Duolingo can't force you to learn anything. But yes, education apps typically have very high churn. The fact that Duolingo is able to increase paid subs at a rapid rate despite the leaky bucket is incredibly impressive. On the former, language learning isn't all about practicality. For a large portion of users, they're trying to learn English and they actually really want to understand the language rather than use AI translating glasses. And secondly, Duolingo includes a structure for habit formation. The company is already embedding AI into its content program with its Max Tier so as the models improve, so should Duolingo's product. It's easy to say that high engagement, alone, isn't a moat and I'd agree but the company's core competency is A/B testing and therefore, the product improves at a much higher rate than competitors as it scales. We paid ~18x FCF, inclusive of stock-based comp. That's not super cheap but for a company with an exceptional founder and growth endurance rivaling our long-time holdings, MercadoLibre and Axon, we decided to finally start a position. |
| DYN | Dyne Therapeutics is a biotechnology company developing late-stage RNA-based therapies for muscular dystrophy conditions. With limited existing treatment options and encouraging early data, upcoming clinical milestones represent meaningful potential value creation opportunities. |
| 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. |
| GKOS | Glaukos following approval of a new product |
| IBP | Installed Building Products installs fiberglass insulation into the walls of new homes and apartment buildings. Given the weak housing market, it grew earnings modestly in 2025, but even that trounced expectations. IBP has exceptional management and has generated good returns for us over the past four years. |
| INSM | Insmed Inc., a biopharmaceutical company focused on developing and commercializing therapies for patients with rare diseases, advanced 21% over the quarter. We have been pleased with the launch of Brensocatib, a first-in-class oral medication that treats non-cystic fibrosis bronchiectasis. The reception has been positive from physicians, patients, and payers. |
| LRN | Stride is an education technology company that provides online education to K-12 students through virtual public schools and learning programs. The stock sold off more than 50% on earnings due to a failed platform upgrade that resulted in major student enrollment losses, poor customer experience, and high withdrawal rates. Given the seasonality inherent in their business model (fall enrollment is the main driver of fiscal year results), investors quickly moved on with the lack of an imminent catalyst until next fall. We eliminated our position during the quarter. |
| NVS | During the quarter, Chinese online discount retailer Vipshop Holdings Ltd., Canadian auto parts manufacturer Magna International and Swiss pharma Novartis AG were sold as each reached target valuation limits. |
| PEN | Other strong performers in the quarter, primarily driven by strong earnings results, included Penumbra |
| PTGX | Protagonist Therapeutics is a biopharmaceutical company that currently has two internally discovered, clinically derisked drugs likely to launch with their partners in the near future, which we believe offer blockbuster potential — particularly an oral version of a well adopted injectable mechanism treating a range of immunology and inflammation conditions. |
| RBC | RBC Bearings, Inc. (RBC) manufactures engineered precision bearings and related products for customers in the aerospace, defense, and industrial markets. It is a market leader with a strong reputation for technical capabilities, product quality, and on-time delivery. RBC outperformed in 4Q as its quarterly results beat consensus estimates on both revenue and EPS. Its Aerospace and Defense business (A&D, 44% of total revenue) was particularly strong, essentially 'firing on all cylinders.' Management expects strong growth in its A&D backlog and is in the process of adding capacity to meet demand. Growth in its Industrial business (56% of total revenue) remains sluggish, but management has significantly improved the profit margins of this business and is now in the process of implementing growth initiatives. We continue to like RBC's leadership team, well-established strategic playbook, as well as its opportunities for growth and capital deployment. |
| SSD | Simpson Manufacturing is a leading building products company focused on connectors, truss plates and fasteners used in residential construction. With a dominant share in its core markets, attractive margins and opportunities to expand into adjacent categories, Simpson has steady compounding potential over time, in our view. |
| TREX | TREX Company, a leader in composite decking, was our biggest laggard in Industrials during the fourth quarter, as an increasingly competitive environment and weaker end-market trends led to poor Q3 results. TREX saw business fall off after Labor Day, which is inconsistent with results from other peers and surveys. It was quite surprising and may be a function of its higher DIY business. Regardless, this contradicts our thesis, so we exited the position. |
| VRNS | security software company Varonis and Wix.com, a website and application creation platform, both of which had minor disappointments that led to material stock price overreactions. We continue to have conviction in the idiosyncratic growth opportunities at each of these profitable and attractively valued businesses, both of which can benefit from the proliferation of AI adoption. |
| WIX | Wix.com Ltd. is a leading provider of cloud-based web-development platform for micro-businesses. Shares of Wix declined 41.5% during the fourth quarter and ended the year down 51.9% due to a quarterly earnings report that emphasized greater-than-expected investment behind their new acquisition, the vibe-coding startup, Base44. |
| 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 | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
