ClearBridge All Cap Value Strategy Portfolio Manager Commentary Q4 2018

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Includes: AZO, C, DELL, DVN, ECA, EXC, FL, MRK, NTAP, SAFM, SU, SYF, TDG, VZ
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.

Valuation multiples compressed by over 20% as growth expectations for 2019 were almost cut in half.

By many metrics the financial markets seem to be pricing in a 50% or higher probability of recession over the next 12 months, with many cyclical stocks already priced for a mild or deeper recession.

We have tried to position the portfolio to benefit as Mr. Market adjusts to the new realities of a shift in focus to Main Street, and despite recent extreme market turmoil the portfolio held up better later in the fourth quarter.

The ClearBridge All Cap Value Strategy had a negative return during the fourth quarter of 2018, underperforming the Strategy’s benchmark.

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