ClearBridge is a leading global asset manager committed to active management. Research-based stock selection guides our investment approach, with our strategies reflecting the highest-conviction ideas of our portfolio managers.
Momentum stocks dominated performance, with little regard for valuation. This is surprising but explainable due to work-fromhome (WFH) scenarios which have accelerated digital transformation and the secular shift to the cloud.
Many economic and health uncertainties remain, preventing companies from having much visibility in terms of demand and earnings and we expect profit weakness through at least the third quarter across most sectors of the economy.
We have added cyclicality to the portfolio and consolidated some positions to be more leveraged to a recovery in revenue and earnings once conditions normalize.