Navigating the Currents: ClearBridge Growth Fund's Perspective on Q3 2025

Well, what a quarter it was! As we look back at the third quarter of 2025, it’s clear the market continued its fascinating dance, presenting both opportunities and a fair share of headwinds. Here at ClearBridge Growth Fund, we've been diligently navigating these waters, always keeping our focus squarely on those high-quality, innovative companies we believe are poised for sustainable, long-term expansion.

Frankly, Q3 didn't exactly roll out the red carpet for every growth investor. We saw a continuation of certain macroeconomic discussions, particularly around the global economic outlook and, of course, the ever-present conversation surrounding interest rates. These broader themes often create ripples, causing some shifts in market sentiment. Yet, amidst these fluctuations, we found immense value in sticking to our core philosophy: identifying companies with robust business models, strong competitive advantages, and management teams with a clear vision for the future. This disciplined approach, we believe, truly shines when the market isn't just marching straight up.

Now, diving a little deeper into performance, the ClearBridge Growth Fund demonstrated a compelling resilience through Q3 2025. We were particularly pleased with how our strategic allocations played out. A significant portion of our portfolio continued to benefit from the relentless march of technological innovation, particularly within the artificial intelligence ecosystem and areas pushing the boundaries of data science. It’s truly amazing to witness the pace of development there, isn't it?

However, it wasn't just about riding the tech wave. We also saw solid contributions from select holdings in the healthcare sector, specifically those innovating in diagnostics and therapeutic advancements. Companies that are solving genuine problems and addressing unmet needs often exhibit a certain insulation from broader market swings. Our rigorous bottom-up research, you know, really helps us unearth these gems before they become widely obvious.

Of course, no quarter is without its challenges. We certainly observed some areas of the market where enthusiasm outpaced fundamentals, leading to valuations that, quite frankly, gave us pause. Our strategy isn't about chasing every hot trend; it's about investing with conviction for the long haul. This means we're perfectly content to forgo short-term gains in highly speculative pockets if it means protecting our investors' capital and focusing on sustainable, high-quality growth.

Looking ahead, as we move into the final quarter of 2025, we remain cautiously optimistic. The global economy still presents a nuanced picture, but we see incredible potential in businesses that are adaptable, innovative, and market leaders in their respective niches. We're keeping a very close eye on emerging trends in sustainable technologies and disruptive software solutions, among others. Our commitment to deep fundamental research and a long-term perspective remains unwavering. We're confident that by continuing to focus on these principles, we can navigate whatever comes next and continue to deliver compelling returns for our investors.