ClearBridge Small Cap Strategy Portfolio Manager Commentary Q4 2018

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Includes: ALGT, BKH, CADE, CPS, EVTC, HQY, IPAR, LAD, LBRT, MNRO, OUT, OZK, PNM, REVG, RLGY, SKYW, TVTY, VNTR, XOG
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.

In the fourth quarter of 2018, the small cap Russell 2000 Index dropped throughout the quarter, ending down more than 20% and erasing all gains for the year.

The good news is that stock valuations are much more attractive now, especially among small caps.

The ClearBridge Small Cap Strategy outperformed the Russell 2000 Index, the Strategy’s benchmark, during the quarter, thanks primarily to stock selection in consumer staples and utilities.

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