Seeking Alpha

ClearBridge Small Cap Strategy Portfolio Manager Commentary Q2 2019

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Includes: AAN, AKBA, CVLT, DVAX, FBM, GTN, ITRI, LAD, LTXB, MEI, PLMR, SND, TRWH, TWOU, WAFD, WSBC, WTFC
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.

The quarter was marked alternatively by fears of economic slowdown and exuberance over a potential interest rate cut from the Fed.

Even though the U.S. 10-year bond rate fell 40 basis points to 2.0%, inverting the yield curve, small cap banks outperformed REITs and matched utilities, which are both considered bond proxies.

We plan to remain broadly diversified and to resist the temptation to express a macro view in our portfolio. That would require us to be right not only about future rates, but also about how the market would react to them.