ClearBridge Large Cap Growth Portfolios

Overview | Performance | Portfolio Characteristics

Overview

The Large Cap Growth (LCG) Portfolios seek high-quality, large-company stocks that can provide the potential for superior long-term performance.

Investment Objective

The Large Cap Growth seeks to:

Focus on consistent growth of capital while minimizing volatility;
outperform the Russell 1000 Growth ¹ Index over a full market cycle with less risk; and
perform well in rising markets and outperform the Russell 1000 Growth Index in declining markets.

Investment Philosophy

We believe that:

Ownership of high-quality, large-company stocks can provide the potential for superior long-term performance
Price-sensitive, buy-and-hold approach to stock selection seeks favorable entry-point for growth at a reasonable price

Key Differentiators

Stable and experienced investment team averaging over 20 years of investment industry experience
Looks to invest in world-class companies possessing strong financials, dominant positions, innovation, and best-in-class products and services, led by results-oriented management team with strong track records and sound future plans
Portfolios typically concentrated in 35 to 45 stocks
Stocks and sector weightings are by-products of the bottom-up fundamental research-driven stock selection process

Portfolio Positioning

Designed for investors seeking long-term capital appreciation through investments in large-capitalization companies with the potential for high future earnings growth
Long-term, buy-and-hold approach results in lower portfolio turnover²

Investment Process

We seek to:

Define the investment universe

consider companies with market capitalizations similar to those in the Russell 1000 Growth Index ²;

Apply fundamental & business model analysis

identify companies that can sustain high growth rates, have competitive advantages and maintain sustainable margins;

Utilize key investment valuation measures

select from these candidates those with attractive valuations using measures such as reinvestment and growth rates and discount rate (risk);

Select securities and construct portfolio

choose best ideas for portfolio construction or move to watch list;
capitalize on best idea generation through active weighting; and

Monitor continuously

re-examine a current holding when revenue/earnings growth declines, price appreciation results in an overweight, regulators intervene or management credibility is challenged

Investment Risks

All investments involve risk, including loss of principal and there is no guarantee that investment objectives will be met.

Investments may also be made in ADRs and other securities of non-U.S. companies in developed and emerging markets which involve risks in addition to those ordinarily associated with investing in domestic securities, including the potentially negative effects of currency fluctuation, political and economic developments, foreign taxation and differences in auditing and other financial standards.

These risks are magnified in emerging markets.

Management Team

Established in 2005, ClearBridge Advisors has over 45 years of asset management experience. The firm is known for its research-driven, fundamental approach to investing, offering actively managed U.S. equity products in a wide range of capitalizations and styles.

Investment Management

Scott Glasser

Managing Director

Senior Portfolio Manager
20 years of investment industry experience

Peter Bourbeau

Managing Director

Portfolio Manager
20 years of investment industry experience

Recent Commentary

CBA Large Cap Growth Commentary (Style) - 4Q11

Related Resources

Fact Card

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.

¹The Russell 1000 Growth (R1000G) Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 Index measures the performance of the 1,000 largest companies in the Russell 3000 Index, and represents approximately 92% of the total market capitalization of the Russell 3000 Index. An investor cannot invest directly in an index. The index is not managed and not subject to management or brokerage commission. Dividends are subject to reinvestment.

²Market, security and/or other investment considerations may result in higher turnover from time to time. Also, all capitalization ranges will not necessarily be represented in an individual account.

Client portfolios are managed based on investment instructions or advice provided by one or more of the following Legg Mason-affiliated investment management firms, as indicated in portfolio names or otherwise: ClearBridge Advisors, LLC, Western Asset Management Company and Global Currents Investment Management, LLC. Management is implemented by Legg Mason Private Portfolio Group, LLC or, in the case of certain programs, by the program sponsor or its designee.

All investments involve risk, including possible loss of principal.