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Institutional Investor Advisor Individual Investor
Total AUM Avg. PM Years Experience Years Since Inception
$893.6M 18 13
As of December 31 2019

Strategy Average Annual Total Returns

(%, Gross of Fees)2
YTD 1 Year 3 Years 5 Years 7 Years 10 Years
ClearBridge Select Composite 35.92 35.92 28.57 16.61 20.48 18.21
Russell 3000 Index 31.02 31.02 14.57 11.24 14.38 13.42
As of December 31 2019

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 $893.6M
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
18 Years experience
13 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

  • Select Strategy
    4Q19 Commentary: Evolving opportunities stocks were leading contributors and a key part of our portfolio repositioning.
  • AssetTV Global Market Outlook for 2020
    A ClearBridge panel shares their views on recession and geopolitical risks and where they see opportunities as active managers in the year ahead.
  • Growth Opportunities in Digital Transformation
    PM Aram Green and Analyst Hilary Frisch discuss how software is transforming the way businesses compete.
  • Select Strategy Update
    PM Aram Green analyzes the rotation out of growth and momentum stocks and how volatility has impacted portfolio positioning.
  • Select Strategy
    3Q19 Commentary: A rotation out of growth and momentum stocks, spurred in part by negative sentiment toward IPOs, weighed on results.

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 35.92 35.92 28.57 16.61 20.48 18.21
Russell 3000 Index 31.02 31.02 14.57 11.24 14.38 13.42

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 37.03 22.43
Consumer Discretionary 17.02 10.04
Health Care 12.75 14.16
Industrials 9.25 9.89
Real Estate 5.37 3.99
Communication Services 5.21 9.41
Consumer Staples 3.80 6.45
Financials 3.25 13.49
Materials 1.23 2.85
Energy 0.00 4.05
Utilities 0.00 3.24
Cash 5.11 0.00
Portfolio Characteristics1,2
Characteristics Representative Portfolio Russell 3000 Index
P/E Ratio (trailing 12 mos.) 37.3 22.7
P/E Ratio (forward 12 mos.) 31.9 19.9
Price/Book 6.8 5.4
EPS Growth Next 3-5 Years (%) 25.0 11.1
Weighted Median Market Cap ($ bn) 10.6 85.4
Weighted Average Market Cap ($ bn) 73.9 240.0
ROE 13.0 21.1
Dividend Yield 0.4 1.7
Turnover (trailing 12 mos.) --
Risk Statistics1
10 Year Risk Statistics Composite Russell 3000 Index
Annualized Returns (10 Years) 18.21 13.42
Standard Deviation (%) 16.64 12.87
Sharpe Ratio 1.06 1.00
Tracking Error (%) 8.48 --
R2 0.75 --
Alpha (%) 3.27 --
Beta 1.12 --
Top 10 Holdings1
Characteristics % of Total Representative Portfolio
Shopify Inc 3.08
ServiceNow Inc 2.97
SBA Communications Corp 2.85
Apple Inc 2.71
Ross Stores Inc 2.50
Copart Inc 2.46
Syneos Health Inc 2.45
Fortinet Inc 2.32
Trex Co Inc 2.23
DocuSign Inc 2.20
Total 25.77
Total Number of Holdings 70
  • 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 (12/31/19) 3 Yrs (12/31/19) 5 Yrs (12/31/19) 10 Yrs (12/31/19)
    Net-of-fees  34.7% 27.4% 15.5% 17.0%
    Gross-of-fees 35.9% 28.6% 16.6% 18.2%
    Russell 3000 31.0% 14.6% 11.2% 13.4%
  • 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.