ClearBridge Mid Cap Growth Strategy Portfolio Manager Commentary Q3 2018

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Includes: AAP, AZPN, CSGP, FTNT, GRUB, IPGP, JKHY, JLL, MHK, MLM, ROST, SPLK, TEAM, USFD, WDAY, XRAY
by: ClearBridge Investments
Summary

ClearBridge is a leading global asset manager committed to active management. Research-based stock selection guides our investment approach, with our strategies reflecting the highest-conviction ideas of our portfolio managers.

Mid-cap stocks participated in another period of solid performance for U.S. equity markets in the third quarter. A strengthening U.S. economy provided ample support for the robust earnings growth mid-cap growth companies continue to produce.

Investors have asked repeatedly over the past year whether small- and mid-cap growth stocks can sustain their momentum. While growth valuations are not much higher than historical averages compared to similar size value companies, we are mindful of the recent outperformance of select growth stocks.

TheClearBridge Mid Cap Growth Strategy outperformed its Russell Midcap GrowthIndex benchmark during the third quarter. IT, which comprises the Strategy’slargest exposure, continued to be a performance driver.