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Institutional Investor Advisor Individual Investor
Total AUM Avg. PM Years Experience Years Since Inception
$2.3B 21 37
As of June 30 2019

Strategy Average Annual Total Returns

(%, Gross of Fees)2
YTD 1 Year 3 Years 5 Years 7 Years 10 Years
ClearBridge Value Equity Composite 18.76 5.42 10.76 7.17 12.81 12.58
S&P 500 Index 18.54 10.42 14.19 10.71 13.98 14.70
As of June 30 2019

Overview

The Value Equity Strategy takes an active, opportunistic approach to finding and exploiting price-value gaps among stocks across market capitalizations.

Strategy Overview Large cap core strategy
Benchmark S&P 500 Index
Total Strategy AUM $2.3B
Holdings Range 40-501
Objective Provide competitive returns relative to the S&P 500 Index3

Investment Philosophy

We believe that to generate excess returns consistently, we must find and exploit mispricings.

Meet Our Managers

Sam Peters, CFA

Portfolio Manager
26 Years experience
14 Years at ClearBridge

Jean Yu, CFA, PhD

Portfolio Manager
17 Years experience
17 Years at ClearBridge

Strategy Facts

Follows a true value approach, targeting stocks with a significant spread between current price and future value

Integrates behavioral finance and market expectations into stock selection process

Portfolio managers Sam Peters and Jean Yu bring a long tenure of investment experience and are supported by four dedicated portfolio analysts

Literature & Perspectives

  • Value Equity Strategy
    2Q19 Commentary: With no evidence of inflation and some mounting signs of a global slowdown, we have sought to diversify cyclical exposure.
  • Value Equity Strategy
    1Q19 Commentary: The challenge of massive beta waves has opened an opportunity that our active valuation process is designed to help capture.
  • Value Equity Strategy
    4Q18 Commentary: As rates rose and liquidity declined in 2018, it became very clear how sensitive some parts of the real economy were to higher rates.
  • Value Equity Strategy
    3Q18 Commentary: We are finding low correlations of value to growth and momentum have surfaced true value stocks.
  • Value Equity Strategy
    2Q18 Commentary: The digitization of markets has concentrating capital around dominant narratives like never before — but these stories tend to reverse.

Vehicles

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

ClearBridge Value Trust

Investment Process

  • Source ideas using a variety of quantitative and qualitative tools
  • Evaluate stocks based on industry structure and competitive position; management; ROIC versus the cost of capital, and free cash flow potential
  • Understand expectations embedded in stock price; develop a range of potential future values
  • Select and weight stocks based on impact to portfolio's overall risk-adjusted returns
  • Actively manage weights based on three- to five-year return potential

Performance

Exploiting mispriced stocks has led to competitive returns over multiple time periods.

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

YTD 1 Year 3 Years 5 Years 7 Years 10 Years
ClearBridge Value Equity Composite 18.76 5.42 10.76 7.17 12.81 12.58
S&P 500 Index 18.54 10.42 14.19 10.71 13.98 14.70

Characteristics

The Strategy mains a concentrated portfolio of 50 or less stocks.

Sector Weights1,2

Representative Portfolio S&P 500 Index
Financials 21.71 13.07
Information Technology 15.40 21.48
Energy 11.02 5.05
Health Care 10.72 14.20
Consumer Discretionary 7.29 10.19
Consumer Staples 6.92 7.27
Communication Services 6.57 10.19
Industrials 6.30 9.38
Utilities 4.19 3.31
Materials 4.12 2.80
Real Estate 1.82 3.05
Cash 3.95 0.00
Portfolio Characteristics1,2
Characteristics Representative Portfolio S&P 500 Index
P/E Ratio (trailing 12 mos.) 15.8 20.4
P/E Ratio (forward 12 mos.) 12.7 17.9
Price/Book 3.5 5.9
EPS Growth Next 3-5 Years (%) 11.6 11.6
Weighted Median Market Cap ($ bn) 47.2 113.2
Weighted Average Market Cap ($ bn) 162.2 234.3
ROE 14.4 22.2
Dividend Yield 2.2 1.9
Turnover (trailing 12 mos.) 19.8
Risk Statistics1
10 Year Risk Statistics Composite S&P 500 Index
Annualized Returns (10 Years) 12.58 14.70
Standard Deviation (%) 15.15 12.73
Sharpe Ratio 0.83 1.11
Tracking Error (%) 4.73
R2 0.92
Alpha (%) -3.48
Beta 1.14
Top 10 Holdings1
Characteristics % of Total Representative Portfolio
Microsoft Corp 6.08
Alphabet Inc 5.20
Allergan PLC 4.47
American International Group Inc 4.27
Oracle Corp 3.65
Kinder Morgan Inc/DE 3.35
Synchrony Financial 3.33
Wells Fargo & Co 3.29
Royal Gold Inc 3.15
Alexion Pharmaceuticals Inc 2.80
Total 39.60
Total Number of Holdings 49
  • 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 (6/30/19)

    3 Yrs (6/30/19)

    5 Yrs (6/30/19)

    10 Yrs (6/30/19)

    Net-of-fees

    4.7% 10.0% 6.5% 11.8%

    Gross-of-fees

    5.4% 10.8% 7.2% 12.6%

    S&P 500

    10.4% 14.2% 10.7% 14.7%

     

  • 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 Value Equity Composite invests primarily in U.S. equity securities with market capitalizations generally greater than $5 billion at the time of purchase. The strategy is designed for investors seeking a concentrated portfolio of primarily large-cap U.S. securities.  Results calculated in U.S. dollars. The S&P 500® Index is a broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks. 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.