ClearBridge Large Cap Value Portfolios

The ClearBridge Large Cap Value Portfolios are designed for investors seeking long-term growth using a large-capitalization value investment style.

Seeks to generate long-term growth of capital while achieving competitive returns through a market cycle. 

Construct a portfolio of high quality franchises with resilient and durable businesses at attractive valuations, and the potential to generate superior risk adjusted returns over the medium to long term

Strong business franchises

• Resilient means having sufficient competitive advantages and balance sheet strength to weather inevitable bumps in the road, whether they be cyclical, operational or other
• Durable applies to both the stability of the industry and the company’s competitive position within the industry
• Low risk of obsolescence and technological disintermediation

Attractive valuations

• Attractive valuation relative to franchise quality
• Based on normalized earnings power adjusted for leverage and cyclicality
• Heavily discount unproven products and services

• Designed for investors seeking to invest in high-quality large-cap companies trading at an attractive valuation
• Diversified portfolio seeks to offer competitive risk-adjusted returns

Value Investors Who Don't Start with Valuation

• Avoid screening for cheap stocks that are anticipating mean reversion or possible catalyst to unlock value
• Identify businesses with strong franchises in stable to growing markets
• Apply disciplined valuation to potential investment candidates

Purposefully Different, Style Pure And Risk Aware

• Balance between concentration and diversification: 45-55 holdings, active share of 75%+ and moderate tracking error
• Quality focus and valuation discipline; historically higher ROE with benchmark like valuation
• Long-term investment horizon: 10-20% turnover
• Excess returns over a market cycle; target strong upside participation while emphasizing risk management
• Stock selection as primary driver of returns

Diversification does not guarantee a profit or protect against a loss. There is no guarantee that the Portfolio's objectives will be met.

Step 1 - Define the Investment Universe

Invests in U.S. large-cap companies with market capitalizations typically greater than $5 billion, which may include ADRs.

Step 2 - Fundamental Research

• Review financial statements and understand industry competitive dynamics. 
• Work interactively with analysts and perform scenario analysis. 
• Attractive valuation emphasizing normalized earnings power while heavily discounting profits from unproven business models.

Step 3 - Portfolio Construction

• Combine bottom-up fundamental analysis with macro outlook to construct diversified Large Cap Value portfolio. 
• Target equity position size generally ranges from 1-4% of the total portfolio.
• Seek characteristics similar to the Russell 1000 Value Index benchmark with attractive risk-adjusted returns.

Step 4 - Risk Management and Sell Process

• Portfolio diversified by sector and security; continuously monitor existing holdings; dedicated risk management team assists CIO and portfolio managers in controlling investment risks. 
• Reduce or eliminate holdings that exceed position size limits, are approaching full valuation, or that do not meet fundamental expectations or in response to more attractive opportunities.

The investment process may change over time. The characteristics set forth above are intended as a general illustration of some of the criteria the strategy team considers in selecting securities for client portfolios. There is no guarantee investment objectives will be achieved.

ClearBridge Investments is a well-established global investment manager focusing on proprietary research and fundamental investing. With over 60 years of experience building portfolios for clients seeking income solutions, high active share or low-volatility, long-tenured portfolio managers provide strong leadership in a centralized investment structure.