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Institutional Investor Advisor Individual Investor
Total AUM Avg. PM Years Experience Years Since Inception
$76.3M 21 7
As of March 31 2021

Strategy Average Annual Total Returns

(%, Gross of Fees)2
YTD 1 Year 3 Years 5 Years 7 Years Since Inception
ClearBridge Health Care Innovations Composite 1.41 39.25 15.78 13.60 12.41 13.49
MSCI World Health Care (Net) (USD) Index 0.72 29.16 13.51 11.60 9.76 11.16
As of March 31 2021

Overview

The Health Care Innovations Strategy invests in companies improving the delivery of health care through scientific breakthroughs and transformative business models. 

Strategy Overview Global health care sector strategy
Benchmark MSCI World Health Care (Net) (USD) Index
Total Strategy AUM $76.3M
Holdings Range 30-501
Objective Total return3

Investment Philosophy

The team targets innovative growth companies improving the delivery of health care through scientific breakthroughs and transformative business models.

Meet Our Managers

Evan Bauman

Portfolio Manager
25 Years experience
25 Years at ClearBridge

Marshall Gordon

Senior Analyst - Health Care
21 Years experience
13 Years at ClearBridge

Nicholas Wu, PhD

Senior Analyst - Health Care
19 Years experience
14 Years at ClearBridge

Strategy Facts

Concentrated sector approach primarily targeting biopharmaceutical companies with innovative disease treatments and technologies.

Invests across market capitalizations and geographies.

Draws on firm’s history of substantial investment in innovative health care businesses.

Related Perspectives

Investment Process

  • Define investment universe of health care stocks by market cap, business model and geography
  • Conduct fundamental analysis, integrating scientific themes and market trends with evaluation of company managements and valuation
  • Select stocks with sustainable growth characteristics and working capital, focusing on innovation and business transformation
  • Construct portfolio balanced between concentrated top positions and smaller positions in early stage companies
  • Monitor portfolio with attention to risk management, position sizes and new ideas

Performance

Owning a diversified portfolio of health care companies has led to competitive returns.

Average Annual Total Returns (%, Gross of Fees)2

YTD 1 Year 3 Years 5 Years 7 Years Since Inception
ClearBridge Health Care Innovations Composite 1.41 39.25 15.78 13.60 12.41 13.49
MSCI World Health Care (Net) (USD) Index 0.72 29.16 13.51 11.60 9.76 11.16

Characteristics

The concentrated Strategy’s top 10 holdings account for more than 50% of the portfolio.

Sector Weights1,2

Representative Portfolio MSCI World Health Care (Net) (USD) Index
Biotechnology 35.80 13.18
Pharmaceuticals 27.57 38.47
Health Care Equipment 14.61 21.33
Managed Health Care 9.21 8.22
Life Sciences Tools & Services 5.58 7.39
Health Care Supplies 2.90 2.96
Health Care Services 1.52 4.24
Health Care Technology 0.00 1.63
Health Care Distributors 0.00 1.37
Health Care Facilities 0.00 1.21
Cash 2.80 0.00
Portfolio Characteristics1,2
Characteristics Representative Portfolio MSCI World Health Care (Net) (USD) Index
P/E Ratio (trailing 12 mos.) 27.4 26.3
P/E Ratio (forward 12 mos.) 16.9 17.4
Price/Book 7.2 6.6
EPS Growth Next 3-5 Years (%) 11.9 11.5
Weighted Median Market Cap ($ bn) 143.9 98.6
Weighted Average Market Cap ($ bn) 150.7 139.9
ROE 12.1 17.6
Dividend Yield 1.4 1.7
Turnover (trailing 12 mos.) 18.8 --
Risk Statistics1
10 Year Risk Statistics Composite MSCI World Health Care (Net) (USD) Index
Annualized Returns (10 Years)
Standard Deviation (%)
Sharpe Ratio -- --
Tracking Error (%) --
R2 --
Alpha (%) --
Beta --
Top 10 Holdings1
Characteristics % of Total Representative Portfolio
UnitedHealth Group Inc 9.21
Johnson & Johnson 5.72
Thermo Fisher Scientific Inc 5.58
AbbVie Inc 5.27
Amgen Inc 5.27
Eli Lilly and Co 5.08
Merck & Co Inc 4.88
Roche Holding AG 4.63
Danaher Corp 4.16
Stryker Corp 3.70
Total 53.50
Total Number of Holdings 44
  • 1

    Source: FactSet. Representative portfolio characteristics, holdings, sector weightings and market cap are based on a representative portfolio and are subject to change at any time. Holdings, sector weightings, market cap and portfolio characteristics of individual client portfolios may differ, sometimes significantly, from those shown. This information does not constitute, and should not be construed as, investment advice or recommendations with respect to the securities and sectors listed.

  • 2

    Past performance is no guarantee of future results. See GIPS endnotes. Performance is preliminary and subject to change.

  • 3

    There is no guarantee that the Strategy's objective will be met.

  • P/E ratios are weighted harmonic average. Price/Book is weighted average.

  • Performance source: Internal. Benchmark source: Morgan Stanley Capital International. 

  • ClearBridge Investments, LLC claims compliance with the Global Investment Performance Standards (GIPS®). ClearBridge Investments, LLC ("ClearBridge") is a wholly owned subsidiary of Legg Mason, Inc. ("Legg Mason"). The investment advisory business now known as ClearBridge was registered in September 2005 to facilitate Legg Mason's acquisition of substantially all the equity asset management businesses known as Citigroup Asset Management. These former businesses serve as the foundation of ClearBridge and its claim of GIPS compliance for institutional accounts through predecessor firms, effective as of January 1997. In June 2008, ClearBridge combined this business with its retail business to form a single GIPS firm. As of April 1, 2013, January 1, 2016 and May 1, 2020, ClearBridge affiliates, Global Currents Investment Management, LLC, ClearBridge, LLC and ClearBridge Investments Limited (f/k/a RARE Infrastructure Limited) have become part of the ClearBridge GIPS firm. The ClearBridge Global Health Care Innovations composite will pursue its investments objective by investing at least 80% of its assets in the securities of companies involved in the research, development, production, marketing, distribution, sales and payments of products and services related to healthcare and the life sciences. Results are calculated in U.S. dollars. The MSCI All Country World Health Care Index is designed to capture the large and mid cap segments across 24 Developed Markets countries. All securities in the index are classified in the Health Care sector. To receive a complete list and description of ClearBridge composites and/or a presentation that adheres to the GIPS standards, please contact ClearBridge Institutional Marketing.