Overview

• ClearBridge reported solid absolute returns in Q3 2025 but lagged the Russell 1000 Growth Index, attributing the gap to underexposure to perceived AI winners and holdings viewed as AI losers.
• The firm exited Workday and Accenture, citing slowing fundamental growth in application software and rising AI-related risks to those business models.
• It fully sold UnitedHealth in July after comments from returning CEO Stephen Helmsley signaled a lengthy recovery, and it divested Union Pacific due to an expected overhang from a merger with Norfolk Southern.
• New and increased positions targeted AI infrastructure beneficiaries, including initiations in Oracle and Datadog and an added stake in Broadcom, with Oracle highlighted for lower-cost architecture suited to large-scale AI training.
• The team also broadened exposure beyond tech by purchasing Vertex Pharmaceuticals, repurchasing Chipotle, and adding Parker-Hannifin to capture durability in biopharma and early signs of a cyclical upturn in consumer and industrial demand.