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Institutional Investor Advisor Individual Investor
Total AUM Avg. PM Years Experience Years Since Inception
$4.0B 21 23
As of September 30 2021

Strategy Average Annual Total Returns

(%, Gross of Fees)2
YTD 1 Year 3 Years 5 Years 7 Years 10 Years
ClearBridge Mid Cap Composite 19.07 43.47 16.27 15.13 12.63 16.26
Russell Midcap Index 15.17 38.11 14.22 14.39 12.15 15.52
As of September 30 2021

Overview

The Mid Cap Strategy applies quantitative and fundamental research to a relatively inefficient segment of the U.S. market to identify high-quality, mispriced stocks. 

Strategy Overview Mid cap core strategy utilizing both quantitative and fundamental analysis, with a focus on stock selection
Benchmark Russell Midcap Index
Total Strategy AUM $4.0B
Holdings Range 50-801
Objective Long-term growth of capital and consistently superior returns relative to the benchmark3

Investment Philosophy

While markets are efficient over the long term, individual stocks are mispriced at times, presenting exploitable inefficiencies. Through a combination of quantitative and fundamental analysis, these can be identified and capitalized on.

Meet Our Managers

Brian Angerame

Portfolio Manager
27 Years experience
21 Years at ClearBridge

Matthew Lilling, CFA

Portfolio Manager
15 Years experience
11 Years at ClearBridge

Strategy Facts

Focuses on high-quality companies with strong balance sheets, high returns on capital, high free cash flow generation and sustainable competitive advantages.

Owns a mix of growth and value stocks.

Portfolio managers Brian Angerame and Matthew Lilling have worked together on the Strategy for over a decade.

Related Perspectives

Investment Process

  • Quantitative screening applying a multi-factor model to identify companies with attractive valuations, strong fundamentals and capital discipline
  • Fundamental research to gauge attractiveness from an industry, business model, management and valuation standpoint
  • Portfolio construction that balances risk and reward across a portfolio of high conviction ideas
  • Ongoing portfolio review using quantitative, risk management and valuation tools 

Performance

An approach blending growth and value stocks has led to competitive long-term returns. 

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

YTD 1 Year 3 Years 5 Years 7 Years 10 Years
ClearBridge Mid Cap Composite 19.07 43.47 16.27 15.13 12.63 16.26
Russell Midcap Index 15.17 38.11 14.22 14.39 12.15 15.52

Characteristics

The Strategy’s quality focus is reflected in return on equity (ROE) that is higher than its benchmark. 

Sector Weights1,2

Representative Portfolio Russell Midcap Index
Industrials 20.25 15.13
Information Technology 17.07 18.88
Consumer Discretionary 14.44 12.79
Financials 13.40 12.47
Health Care 12.44 11.86
Materials 4.79 5.22
Consumer Staples 4.38 3.31
Utilities 3.65 4.46
Real Estate 3.62 7.68
Communication Services 2.37 4.35
Energy 2.26 3.83
Cash 1.33 0.00
Portfolio Characteristics
Characteristics Representative Portfolio Russell Midcap Index
P/E Ratio (trailing 12 mos.) 27.9 21.1
P/E Ratio (forward 12 mos.) 22.3 19.5
Price/Book 5.5 5.9
EPS Growth Next 3-5 Years (%) 16.9 13.9
Weighted Median Market Cap ($ bn) 15.1 21.1
Weighted Average Market Cap ($ bn) 18.6 23.0
ROE 7.8 9.4
Dividend Yield 0.7 1.2
Turnover (trailing 12 mos.) 30.6 --
Risk Statistics1
10 Year Risk Statistics Composite Russell Midcap Index
Annualized Returns (10 Years) 16.26 15.52
Standard Deviation (%) 16.29 15.18
Sharpe Ratio 0.98 0.99
Tracking Error (%) 3.69 --
R2 0.95 --
Alpha (%) 0.11 --
Beta 1.05 --
Top 10 Holdings1
Characteristics % of Total Representative Portfolio
Western Alliance Bancorp 3.30
Aptiv PLC 3.05
Hartford Financial Services Group Inc/The 2.73
WillScot Mobile Mini Holdings Corp 2.55
Performance Food Group Co 2.43
Rexnord Corp 2.42
Vertiv Holdings Co 2.32
Pioneer Natural Resources Co 2.26
Avantor Inc 2.14
ON Semiconductor Corp 2.11
Total 25.32
Total Number of Holdings 65
  • 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.

  • 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. In July 2020 Legg Mason, Inc. was purchased by Franklin Resources Inc. The ClearBridge Mid Cap Composite primarily invests in medium-sized companies. Accounts generally are diversified across several economic sectors and investments are primarily in those companies having market capitalizations within the capitalization range of the Russell Mid Cap Index. Results are calculated in U.S. dollars. The Russell Midcap® Index measures the performance of the mid-cap 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.