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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.