ClearBridge Investments, a global equity manager, recently published second-quarter 2026 commentary for its “Large Cap Growth Strategy”.
A copy of the letter can be downloaded here
Equity markets experienced a significant rally in the second quarter, fueled by robust earnings and increasing optimism regarding easing geopolitical tensions. The S&P 500 Index climbed 15.2% during this period, while the Russell 1000 Growth Index returned 16.7%, despite some volatility in sentiment towards AI. The reconstitution of Russell U.S.
Indexes and the SpaceX IPO had a notable impact on large-cap growth benchmarks this quarter. The Strategy transitioned from a diversified to a non-diversified approach in the quarter, allowing for greater flexibility in portfolio management. Against this backdrop, the Strategy underperformed its benchmark, driven by stock selection and sector allocation.