Clearbridge Investments Select Strategy’s Q4 2025 Investor Letter

ClearBridge Investments, an investment management company, released its “ClearBridge Select Strategy” Q4 2025 investor letter. In the fourth quarter of 2025, U.S. equities demonstrated a resilient yet volatile performance, with major indices close to near all-time highs while significant shifts occurred later. Momentum-driven themes, particularly those related to artificial intelligence (AI), technology, and cryptocurrencies, persisted into the early part of the quarter but subsequently reversed. This reversal led to increased volatility and greater stock-level dispersion. As volatility rose, investors began prioritizing companies with robust fundamentals, innovative growth potential, and strong operational execution. The S&P 500 Index posted a return of 2.7% for the quarter, while the Russell 3000 Index gained 2.4%. Growth stocks trailed their value counterparts, as the enthusiasm surrounding AI softened and concerns emerged regarding the return on AI-related investments. The strategy lagged behind the benchmark in the quarter due to a shift towards quality, with a preference for larger-cap companies, with notable weaknesses in the health care and technology sectors. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.

A copy of Clearbridge Investments Select Strategy’s Q4 2025 investor letter can be downloaded here.