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Institutional Investor Advisor Individual Investor
Total AUM Avg. PM Years Experience Years Since Inception
$1.7B 19 14
As of September 30 2020

Strategy Average Annual Total Returns

(%, Gross of Fees)2
YTD 1 Year 3 Years 5 Years 7 Years 10 Years
ClearBridge Select Composite 37.51 51.51 31.29 27.23 20.39 20.85
Russell 3000 Index 5.41 15.00 11.65 13.69 12.11 13.48
As of September 30 2020

Overview

The Select Strategy takes an unconstrained approach to growth investing, seeking out companies with disruptive business models, large addressable markets and growth dynamics not reflected in their stock prices.

Strategy Overview Long-biased, concentrated go-anywhere strategy
Benchmark Russell 3000 Index
Total Strategy AUM $1.7B
Holdings Range 30-601
Objective Long-term growth of capital3

Investment Philosophy

Use a bottom-up, benchmark agnostic approach to identify companies with strong growth prospects and/or attractive valuations.

Meet Our Managers

Aram Green

Portfolio Manager
19 Years experience
14 Years at ClearBridge

Strategy Facts

Concentrates its investments in growth stocks in the information technology, health care and consumer discretionary sectors.

Portfolio manager Aram Green applies his experience managing small and mid cap growth portfolios while sourcing investment ideas from a team of portfolio analysts and a centralized research platform of sector analysts.

Strategy may invest in private securities to become early participants in growth of promising businesses and gain insights on emerging industry trends.

Literature & Perspectives

  • Gaining Upside from All Corners
    Select 3Q20: In a narrow market, the Strategy outperformed with diversified contributions across sectors and cap ranges.
  • AssetTV Profiles Select Strategy
    PM Aram Green explains his investment philosophy, the types of opportunities he targets and the importance of risk management in the current environment.
  • Select Strategy
    2Q20 Commentary: We rebalanced the portfolio by trimming big winners in the disruptors group and adding to evolving opportunities and value names.
  • Select Strategy Update
    Portfolio Manager Aram Green highlights the disruptive companies that led robust 2Q performance and where he sees opportunities as the economy reopens.
  • Select Strategy
    1Q20 Commentary: Record volatility enabled us to target temporarily mispriced software and newly public companies.

Vehicles

This Strategy is available in other investment vehicles including the following:

ClearBridge Select Fund

Investment Process

  • Flexible approach to idea generation by evaluating business model, financial structure and management across market caps to identify and understand risks of companies with strong operating leverage
  • Conduct fundamental research, focusing on share takers generating above-average unit growth through innovative products and services
  • Concentrated portfolio of 30 to 60 stocks
  • Monitor portfolio, constantly managing risk by reviewing thesis and adjusting allocations and tactically using hedging strategies

Performance

Owning a broad range of growth stocks has led to competitive long-term results.

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

YTD 1 Year 3 Years 5 Years 7 Years 10 Years
ClearBridge Select Composite 37.51 51.51 31.29 27.23 20.39 20.85
Russell 3000 Index 5.41 15.00 11.65 13.69 12.11 13.48

Characteristics

The high active share Strategy maintains a significant overweight to the information technology sector.

Sector Weights1,2

Representative Portfolio Russell 3000 Index
Information Technology 33.93 27.21
Consumer Discretionary 16.32 12.34
Health Care 11.89 14.59
Industrials 10.40 8.99
Consumer Staples 7.52 6.30
Financials 5.91 9.90
Real Estate 5.04 3.32
Communication Services 2.34 9.81
Energy 1.06 1.92
Materials 1.03 2.76
Utilities 0.00 2.85
Cash 4.56 0.00
Portfolio Characteristics1,2
Characteristics Representative Portfolio Russell 3000 Index
P/E Ratio (trailing 12 mos.) 34.6 26.2
P/E Ratio (forward 12 mos.) 40.9 23.8
Price/Book 6.4 5.5
EPS Growth Next 3-5 Years (%) 24.8 12.9
Weighted Median Market Cap ($ bn) 15.5 108.4
Weighted Average Market Cap ($ bn) 108.4 373.5
ROE 10.9 21.8
Dividend Yield 0.4 1.7
Turnover (trailing 12 mos.) 27.7 --
Risk Statistics1
10 Year Risk Statistics Composite Russell 3000 Index
Annualized Returns (10 Years) 20.85 13.48
Standard Deviation (%) 18.27 13.76
Sharpe Ratio 1.10 0.95
Tracking Error (%) 9.33 --
R2 0.75 --
Alpha (%) 5.23 --
Beta 1.15 --
Top 10 Holdings1
Characteristics % of Total Representative Portfolio
DocuSign Inc 3.82
Shopify Inc 3.38
ServiceNow Inc 3.34
SBA Communications Corp 2.97
Carvana Co 2.80
Apple Inc 2.66
Wix.com Ltd 2.48
MercadoLibre Inc 2.41
Adobe Inc 2.10
Syneos Health Inc 1.86
Total 27.82
Total Number of Holdings 75
  • 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: Standard & Poor’s.
  • Annualized Returns  1 Yr (6/30/20) 3 Yrs (6/30/20) 5 Yrs (6/30/20) 10 Yrs (6/30/20)
    Net-of-fees  29.1% 26.1% 19.5% 20.0%
    Gross-of-fees 30.3% 27.2% 20.6% 21.2%
    Russell 3000 6.5% 10.0% 10.0% 13.7%
  • 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 Select composite seeks to achieve superior capital absolute returns through capital appreciation by investing in both US and non-US equity, debt and other securities. Results are calculated in U.S. dollars. The Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market. In April 2018 the benchmark changed from the S&P 500® index to the Russell 3000® index. 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.