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Institutional Investor Advisor Individual Investor
Total AUM Avg. PM Years Experience Years Since Inception
$4.3B 24 29
As of June 30 2019

Strategy Average Annual Total Returns

(%, Gross of Fees)2
YTD 1 Year 3 Years 5 Years 7 Years 10 Years
ClearBridge Large Cap Value Composite 18.82 10.48 11.23 7.87 12.11 13.18
Russell 1000 Value Index 16.24 8.46 10.19 7.46 12.09 13.19
As of June 30 2019

Overview

The Large Cap Value Strategy exploits market inefficiencies to identify strong businesses at attractive valuations that it can hold for long time periods. 

Strategy Overview Pure style large cap value strategy with a high conviction approach
Benchmark Russell 1000 Value Index
Total Strategy AUM $4.3B
Holdings Range 50-601
Objective Long-term growth of capital3

Investment Philosophy

Exploit market inefficiencies through an interactive research driven approach to identify companies with strong business franchises and attractive valuations.

Meet Our Managers

Robert Feitler

Portfolio Manager
25 Years experience
24 Years at ClearBridge

Dmitry Khaykin

Portfolio Manager
23 Years experience
16 Years at ClearBridge

Strategy Facts

High conviction, high active share approach drives portfolio that differs significantly from its benchmark.

The Strategy has followed the same consistent investment process since 1995.

Portfolio managers Robert Feitler and Dmitry Khaykin bring a long tenure  of investment experience.

Literature & Perspectives

  • Large Cap Value Strategy
    2Q19 Commentary: Holdings in the IT and communications services sectors drove strong returns during the second quarter.
  • Media Trends: Is Content Still King?
    PM Dmitry Khaykin outlines his value approach to media stocks and explains how major players are vying in a mercurial media landscape.
  • Large Cap Value Strategy Update
    1Q19 Update: PM Dmitry Khaykin highlights strong performers among media and consumer staples companies during a volatile quarter.
  • Large Cap Value Strategy
    1Q19 Commentary: The portfolio benefited from broad-based contributions, among which consumer staples and media names stood out.
  • Understanding Today's Oil Markets
    Analyst Dimitry Dayen explains recent oil price volatility, the changing nature of the supply side and what is separating successful energy stocks.

Investment Process

  • Utilize an interactive, research-driven approach to generate investment ideas among underpriced large cap stocks possessing strong business franchises
  • Conduct fundamental analysis to identify companies with proven business models, sustainable competitive advantages, and attractive valuations in relation to cash flows and normalized earnings
  • Construct a portfolio of 50 to 60 stocks that balances concentration and diversification
  • Continuously monitor holdings to manage risk and exploit most attractive opportunities 

Performance

The Strategy has delivered competitive returns over multiple time periods.

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

YTD 1 Year 3 Years 5 Years 7 Years 10 Years
ClearBridge Large Cap Value Composite 18.82 10.48 11.23 7.87 12.11 13.18
Russell 1000 Value Index 16.24 8.46 10.19 7.46 12.09 13.19

Characteristics

A true long-term strategy with turnover that is significantly lower than its large value peers. 

Sector Weights1,2

Representative Portfolio Russell 1000 Value Index
Financials 24.79 22.50
Health Care 14.46 15.15
Information Technology 11.85 9.73
Industrials 11.00 8.00
Communication Services 10.72 7.08
Energy 7.56 8.98
Materials 4.77 4.03
Consumer Staples 3.30 7.78
Real Estate 2.77 5.04
Consumer Discretionary 2.05 5.28
Utilities 1.81 6.42
Cash 4.92 0.00
Portfolio Characteristics1,2
Characteristics Representative Portfolio Russell 1000 Value Index
P/E Ratio (trailing 12 mos.) 17.6 17.3
P/E Ratio (forward 12 mos.) 15.7 15.0
Price/Book 3.2 2.9
EPS Growth Next 3-5 Years (%) 10.1 8.4
Weighted Median Market Cap ($ bn) 103.3 68.0
Weighted Average Market Cap ($ bn) 167.3 129.5
ROE 17.3 13.3
Dividend Yield 2.3 2.5
Turnover (trailing 12 mos.) 11.0
Risk Statistics1
10 Year Risk Statistics Composite Russell 1000 Value Index
Annualized Returns (10 Years) 13.18 13.19
Standard Deviation (%) 12.65 13.04
Sharpe Ratio 1.01 0.98
Tracking Error (%) 2.55
R2 0.96
Alpha (%) 0.57
Beta 0.95
Top 10 Holdings1
Characteristics % of Total Representative Portfolio
JPMorgan Chase & Co 4.61
Motorola Solutions Inc 3.48
Comcast Corp 3.34
Microsoft Corp 3.08
Honeywell International Inc 2.94
American Tower Corp 2.77
US Bancorp 2.66
Bank of America Corp 2.61
American Express Co 2.60
Anthem Inc 2.59
Total 30.68
Total Number of Holdings 50
  • 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: Russell Investments. Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication.

  • Annualized Returns  1 Yr (3/31/19) 3 Yrs (3/31/19) 5 Yrs (3/31/19) 10 Yrs (3/31/19)
    Net-of-fees  5.6% 9.2% 7.1% 13.5%
    Gross-of-fees  6.2% 9.9% 7.8% 14.2%
    Russell 1000 Value 5.7% 10.5% 7.7% 14.5%
  • 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 and January 1, 2016, ClearBridge's affiliates, Global Currents Investment Management, LLC, and ClearBridge, LLC, respectively, have become part of the ClearBridge GIPS firm. The ClearBridge Large Cap Value Composite primarily invests in large-capitalization U.S. equities, with an objective of outperforming the Russell 1000 Value. Accounts are comprised primarily of equity securities of U.S. companies but also may include significant investments in ADRs and U.S.-traded shares of non-U.S. issuers.  Results are calculated in U.S. dollars. The Russell 1000 Value Index measures the performance of the large-cap value segment of the U.S. equity universe. 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.