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| Total AUM | Avg. PM Years Experience | Years Since Inception |
|---|---|---|
| $1.0B | 29 | 16 |
| YTD | 1 Year | 3 Years | 5 Years | 7 Years | 10 Years | |
|---|---|---|---|---|---|---|
| Gross of Fees | 5.92 | 7.18 | 13.31 | 11.26 | 5.39 | 9.40 |
| Net of Fees | 5.25 | 6.28 | 12.36 | 10.33 | 4.50 | 8.49 |
| Russell 2000 Index | 10.39 | 10.76 | 15.21 | 11.56 | 6.76 | 9.77 |
The Strategy invests primarily in smaller-sized U.S. companies selling at a significant discount to their intrinsic value. Measures that are important in considering an investment candidate include the company's ability to generate free cash flow over the long term, earn an appropriate return on capital invested and allocate capital efficiently.
| Strategy Overview | Small cap value and growth stocks |
| Benchmark | Russell 2000 Index |
| Total Strategy AUM | $1.0B |
| Holdings Range | 60-1001 |
| Objective | Provide competitive returns relative to the Russell 2000 Index3 |
Stock prices and intrinsic values can diverge for an extended period. We focus on our investment process to tilt odds of success in our favor.
Repeatable, proprietary investment process designed to form explicit variant perceptions relative to expectations embedded in the stock price.
Robust, frequent communication among investment team encourages diverse perspectives and improves the questions we ask and assumptions we make.
Diversification across industries and economic drivers results in a resilient portfolio that can outperform in a variety of market conditions and maximize risk adjusted returns.
This Strategy is available in other investment vehicles including the following:
| YTD | 1 Year | 3 Years | 5 Years | 7 Years | 10 Years | |
|---|---|---|---|---|---|---|
| Gross of Fees | 5.92 | 7.18 | 13.31 | 11.26 | 5.39 | 9.40 |
| Net of Fees | 5.25 | 6.28 | 12.36 | 10.33 | 4.50 | 8.49 |
| Russell 2000 Index | 10.39 | 10.76 | 15.21 | 11.56 | 6.76 | 9.77 |
The companies in the portfolio maintain a higher average return on equity (ROE) than those in the benchmark.
| Representative Portfolio | Russell 2000 Index | |
|---|---|---|
| Consumer Discretionary | 9.49 | 9.90 |
| Consumer Staples | 2.82 | 1.99 |
| Energy | 5.21 | 4.83 |
| Financials | 18.78 | 18.00 |
| Health Care | 15.54 | 15.97 |
| Industrials | 15.70 | 17.71 |
| Information Technology | 12.03 | 15.50 |
| Materials | 6.83 | 4.24 |
| Communication Services | 1.45 | 2.78 |
| Utilities | 3.88 | 3.27 |
| Cash | 1.10 | 0.00 |
| Real Estate | 7.17 | 5.80 |
| Characteristics | Representative Portfolio | Russell 2000 Index |
|---|---|---|
| P/E Ratio (trailing 12 mos.) | 16.9 | 18.3 |
| P/E Ratio (forward 12 mos.) | 14.6 | 17.2 |
| Price/Book | 2.8 | 3.2 |
| EPS Growth Next 3-5 Years (%) | 11.2 | 10.9 |
| Weighted Median Market Cap ($ bn) | 3.6 | 3.3 |
| Weighted Average Market Cap ($ bn) | 4.4 | 4.2 |
| ROE | 7.5 | 4.8 |
| Dividend Yield | 1.4 | 1.3 |
| Turnover (trailing 12 mos.) | 29.2 | - |
| 10 Year Risk Statistics | Composite | Russell 2000 Index |
|---|---|---|
| Standard Deviation (%) | 21.53 | 20.85 |
| Sharpe Ratio | 0.39 | 0.45 |
| Tracking Error (%) | 5.38 | -- |
| R2 | 0.94 | -- |
| Alpha (%) | -0.99 | -- |
| Beta | 1.00 | -- |
| Characteristics | % of Total Representative Portfolio |
|---|---|
| Wintrust Financial Corp | 2.03 |
| Murphy USA Inc | 1.93 |
| Corcept Therapeutics Inc | 1.93 |
| Bank OZK | 1.90 |
| GATX Corp | 1.78 |
| UMB Financial Corp | 1.68 |
| MP Materials Corp | 1.61 |
| Portland General Electric Co | 1.60 |
| Arrowhead Pharmaceuticals Inc | 1.57 |
| Meritage Homes Corp | 1.55 |
| Total | 17.57 |
| Total Number of Holdings | 90 |
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. Statistics shown are net of fees.
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.
Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2025. FTSE Russell is a trading name of certain of the LSE Group companies. “Russell®” is a trade mark of the relevant LSE Group companies and is/are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.
ClearBridge Investments, LLC claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. ClearBridge Investments, LLC ("ClearBridge") is a wholly owned indirect subsidiary of Franklin Resources, Inc. (“Franklin”). In July 2020 Legg Mason, Inc., its parent company, was purchased by Franklin. 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, May 1, 2020, and January 1, 2024 ClearBridge affiliates, Global Currents Investment Management, LLC, ClearBridge, LLC, ClearBridge Investments Limited (f/k/a RARE Infrastructure Limited), and Franklin Bissett Asset Management have become part of the ClearBridge GIPS firm.
The ClearBridge Small Cap composite invests in equity securities of U.S. companies that are within or below the market capitalization range of the Russell 2000 Index and that trade at significant discounts to the Investment Manager's assessment of intrinsic value. The strategy is designed for long-term investors who can tolerate the greater risks associated with small capitalization stocks. Under normal circumstances, the strategy will hold a portfolio of securities issued by small capitalization companies. These may include, but are not limited to, common stock, preferred stock, convertible securities, non-U.S. securities, ADR's, ETF's, and money market instruments. Clients should be aware of the possibility of high portfolio turnover, as the length of time a security is held is not generally a consideration with investment decisions. Results calculated in U.S. dollars. The Russell 2000® Index measures the performance of the small-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.
