ClearBridge International Small Cap Strategy Portfolio Manager Commentary Q4 2018

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Includes: APEMY, ARCO, BWAGF, CMEGF, CUCSF, CWYCF, DURXF, EDDRF, GLUSF, HNMGF, HUADY, LPUSF, PEYUF, QUAIF, RROTF, SNVVF, TBAKF, TGA, TKUGF, TVPKF, WNCNF
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.

Worsening expectations for global economic growth, elevated trade tensions and fears of rising interest rates in the US sent global markets into correction territory. Despite the difficult backdrop, however, we were encouraged with the International Small Cap Strategy’s relative outperformance over the period.

The most notable factor driving the portfolio’s quarterly performance was the turn in emerging markets (EM) stocks, which stabilized in September and have outperformed global markets since.

From a portfolio construction perspective, there was a continued pro-cyclical bias in our holdings, with overweights in materials, industrials, financials and energy.

Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.