Investor Type

Tell us once and
we'll remember.

I am an...

Don't worry, you can always change this selection using the icons at the top right of this site.
Institutional Investor Advisor Individual Investor
Total AUM Avg. PM Years Experience Years Since Inception
$6.9B 29 23
As of December 31 2020

Strategy Average Annual Total Returns

(%, Gross of Fees)2
YTD 1 Year 3 Years 5 Years 7 Years 10 Years
ClearBridge Small Cap Growth Composite 45.05 45.05 24.66 21.25 14.88 16.91
Russell 2000 Growth Index 34.63 34.63 16.20 16.36 12.08 13.48
As of December 31 2020


The Small Cap Growth Strategy invests in quality growth companies mispriced by the market that possess large exploitable opportunities. 

Strategy Overview Small cap growth stocks
Benchmark Russell 2000 Growth Index
Total Strategy AUM $6.9B
Holdings Range 60-901
Objective Long-term growth of capital3

Investment Philosophy

Small cap stock prices may vary significantly from fair value in the short run, due to the mispricing of risk in the market, the deluge of short-term data and market illiquidity. Companies with superior prospects for capital appreciation may be identified through fundamental analysis and stock selection.

Meet Our Managers

Aram Green

Portfolio Manager
19 Years experience
14 Years at ClearBridge

Jeffrey Russell, CFA

Portfolio Manager
39 Years experience
30 Years at ClearBridge

Strategy Facts

A quality focus and long-term orientation causes the portfolio to differ considerably from its benchmark. 

Portfolio managers Jeff Russell and Aram Green bring a long tenure of investment experience.

Patient approach seeks to exploit opportunities due to mispricing of risk, market illiquidity and an emphasis on short-term results.

Literature & Perspectives

  • Cultivating New Growth Ideas Amidst Transition
    Small Cap Growth 4Q20: A major market rotation after “Vaccine Monday” boosted cyclicals but was a headwind to portfolio results.
  • Delivering Alpha Through Uncertainty
    Small Cap Growth 3Q20: While mean reversion led to a September value rally across equity markets broadly, growth outperformance persisted among small caps.
  • Small Cap Growth Strategy
    2Q20 Commentary: A coterie of companies benefiting from the transition to work-from-home policies were stellar performers.
  • Small Cap Growth Strategy
    1Q20 Commentary: We remain focused on thoughtfully financed growth businesses that can endure periods of macro dislocation and widen competitive advantages.
  • Small Cap Growth Strategy
    4Q19 Commentary: Strong flows and a relaxing of many market risks sparked a vigorous finish to the year for equities, with small caps leading the way.

Investment Process

  • Generate investment ideas through company meetings, financial analysis and collaboration among portfolio managers, portfolio analysts and centralized research platform
  • Conduct fundamental research to gauge attractiveness from a business model, financial structure, management and valuation standpoint
  • Construct portfolio of high conviction growth stocks with a focus on share takers generating unit growth via innovative products and services
  • Ongoing portfolio review, with attention to valuation and risk management 


A focus on innovation and share takers has enabled the Strategy to deliver competitive long-term results.  

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

YTD 1 Year 3 Years 5 Years 7 Years 10 Years
ClearBridge Small Cap Growth Composite 45.05 45.05 24.66 21.25 14.88 16.91
Russell 2000 Growth Index 34.63 34.63 16.20 16.36 12.08 13.48


The Strategy's bottom-up approach has consistently led to concentrations in the information technology, health care, industrials and consumer discretionary sectors.

Sector Weights1,2

Representative Portfolio Russell 2000 Growth Index
Information Technology 29.75 21.24
Health Care 27.00 34.65
Industrials 15.37 13.80
Consumer Discretionary 9.73 13.35
Financials 6.05 4.08
Consumer Staples 5.65 2.91
Communication Services 3.06 2.27
Materials 0.90 2.43
Energy 0.86 0.15
Real Estate 0.71 3.54
Utilities 0.00 1.59
Cash 0.92 0.00
Portfolio Characteristics1,2
Characteristics Representative Portfolio Russell 2000 Growth Index
P/E Ratio (trailing 12 mos.) 36.1 33.2
P/E Ratio (forward 12 mos.) 36.8 25.3
Price/Book 10.0 7.9
EPS Growth Next 3-5 Years (%) 19.9 18.6
Weighted Median Market Cap ($ bn) 5.0 3.5
Weighted Average Market Cap ($ bn) 6.1 3.9
ROE -4.8 -4.5
Dividend Yield 0.2 0.4
Turnover (trailing 12 mos.) 21.3 --
Risk Statistics1
10 Year Risk Statistics Composite Russell 2000 Growth Index
Annualized Returns (10 Years) 16.91 13.48
Standard Deviation (%) 18.84 19.26
Sharpe Ratio 0.90 0.73
Tracking Error (%) 5.59 --
R2 0.92 --
Alpha (%) 3.89 --
Beta 0.94 --
Top 10 Holdings1
Characteristics % of Total Representative Portfolio
Trex Co Inc 3.68
Chegg Inc 3.01
Inphi Corp 2.88
Monolithic Power Systems Inc 2.70
HubSpot Inc 2.41
Fox Factory Holding Corp 2.35
National Vision Holdings Inc 2.34
Varonis Systems Inc 2.17
BJ's Wholesale Club Holdings Inc 2.10
Total 25.79
Total Number of Holdings 84
  • 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 (9/30/20) 3 Yrs (9/30/20) 5 Yrs (9/30/20) 10 Yrs (9/30/20)
    Net-of-fees  27.1% 18.1% 17.3% 15.1%
    Gross-of-fees  28.1% 19.0% 18.3% 16.1%
    Russell 2000 Growth 15.7% 8.2% 11.4% 12.3%
  • 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. In July 2020 Legg Mason, Inc. was purchased by Franklin Resources Inc. The ClearBridge Small Cap Growth Composite primarily invests in small capitalization stocks, non-U.S. equity securities and cash, with an objective of outperforming the Russell 2000 Growth Index. Results are calculated in U.S. dollars. The Russell 2000 Growth Index measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. 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.