Fri Oct 11 14:10:00 UTC 2024: ## ClearBridge Investments Underperforms in Q3 Despite Strong Market Gains
**New York, NY – October 11, 2024** – ClearBridge Investments’ Large Cap Value Strategy underperformed the benchmark Russell 1000 Value Index in the third quarter of 2024, despite strong market gains fueled by a rebound in U.S. equities. The Russell 1000 Value Index saw a 9.43% gain for the quarter, while ClearBridge’s strategy fell short.
The strong market performance was driven by a 50 basis point interest rate drop by the Federal Reserve, which alleviated fears of slowing economic growth that had previously pushed several asset markets into correction territory.
One of ClearBridge’s notable investments in the third quarter was Broadcom Inc. (NASDAQ:AVGO), a company specializing in semiconductor and infrastructure software solutions. The investment firm believes Broadcom has a “long runway for growth” with its custom silicon business, which they consider more durable and less volatile than other components in the AI supply chain.
ClearBridge is also positive about the acquisition of VMware, which they believe will provide “steady, subscription-based durable growth.” They highlight Broadcom’s attractive risk/reward profile, with mid-teens EPS growth expected at a low-20s P/E multiple.
While ClearBridge acknowledges the potential of Broadcom, they express a stronger conviction in AI stocks for delivering higher returns in a shorter timeframe.
Despite ClearBridge’s underperformance in the third quarter, the firm remains confident in its long-term investment strategy. Investors interested in exploring other investment opportunities can find more information on ClearBridge’s website and at Insider Monkey.
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