Overview
- ClearBridge reported a third consecutive quarter of outperformance as Q4 U.S. equities were choppy, with the S&P 500 up 2.7% and the Russell Midcap Growth down 3.7%, supported by a balanced, highly active approach that captured early AI momentum and cushioned late-quarter volatility.
- Within industrials, the portfolio rotated from Old Dominion Freight Line into XPO, targeting greater idiosyncratic upside under new leadership focused on service quality, pricing discipline, and margin improvement despite a tough freight backdrop.
- TE Connectivity and Vertex Pharmaceuticals were notable contributors, with TEL benefiting from secular automotive and industrial demand and closing at $231.60 on January 9, 2026, while VRTX gained on rising optimism for its kidney disease pipeline.
- ClearBridge added On Holding, noting a strong quarter driven by international expansion, including China, and accelerating growth in apparel.
- E.l.f. Beauty detracted after management paused shipments to retailers slow to pass through tariff-related price increases, though the firm said brand consumption is healthy and shipment growth is recovering in the current quarter.