The ClearBridge Large Cap Growth Strategy lagged the Russell 1000 Growth Index during a major market rally, mainly because it held fewer of the biggest AI stocks and avoided lower-quality AI-related companies.
It opened a position in Arista Networks (ANET), citing the company’s relatively small share in the enterprise segment and its strong potential to gain ground as organizations modernize their campus networking infrastructure.
It added that it will continue to be active in adding to positions or initiating new ones during pullbacks, such as it did with Palo Alto Networks (PANW) following its announcement of the CyberArk acquisition and Netflix (NFLX) when the stock sold off following disclosure of its intent to purchase Warner Bros. Discovery (WBD).
The strategy exited Accenture (ACN) in Q3 and sold Starbucks (SBUX) to focus its restaurant exposure on Chipotle (CMG).
