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Small cap stocks, which had been the favored “risk on” trade of investors earlier in the year, bore the brunt of selling during the fourth quarter.
The Russell 2000 Index declined 20.20% in the quarter, while small cap growth stocks in the benchmark Russell 2000 Growth Index declined 21.65%. For the full year, small cap growth stocks declined 9.31%.
The ClearBridge Small Cap Growth Strategy delivered a modest yet still positive return of approximately 5.3% gross of fees. The Strategy outperformed its Russell 2000 Growth Index benchmark during the fourth quarter.