Overview
- ClearBridge reported its Mid Cap Strategy outperformed the Russell Midcap Index in the third quarter as midcaps advanced on shifting monetary policy and improving sentiment.
- Value surpassed growth during the period, with the Russell Midcap Value Index returning 6.2% versus 2.8% for the Russell Midcap Growth Index, according to the letter.
- Healthcare and consumer staples led the strategy’s gains, highlighted by strong contributions from biotechnology holdings such as Argenx and Alnylam.
- Company-level drivers included Casey’s General Stores benefitting from long-running store reinvestment, Performance Food Group rising on activist engagement and a pact with US Foods to evaluate a strategic combination, and ICON expanding backlog on robust gross business wins.
- Chewy weighed on results as heavier second-half growth investments pressured sentiment, while the portfolio added a new position in QXO, a Brad Jacobs–led platform pursuing building-products distribution consolidation and technology-driven margin improvements.