ClearBridge Small Cap Value Strategy Portfolio Manager Commentary Q4 2018

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Includes: ACCO, AMG, AVID, BDC, BSVN, CNXN, CRD.A, CRD.B, DAN, EE, FET, FNB, IDA, MDR, MOG.A, MOG.B, NPO, NWE, SGRY, SUP, TCBI, TGI, THS, TPC, WAL, WHD, WMK, WTFC, 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.

Smaller companies underperformed larger ones as the Russell 2000 Index declined -20.20% for the quarter.

Value stocks outperformed growth stocks, with the benchmark Russell 2000 Value Index falling -18.67%, compared to the Russell 2000 Growth Index falling -21.65%.

The best performers in the fourth quarter were low-risk or defensive stocks. The small cap value universe tends to be more cyclically exposed, with a high percentage of financials increasing its overall economic sensitivity.

The ClearBridge Small Cap Value Strategy underperformed its Russell 2000 Value Index benchmark during the fourth quarter.

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