Summary

• The Russell 1000 Growth Index declined 9.8% in the first quarter as geopolitical conflict and heightened scrutiny of AI-related returns pressured higher multiple equities.
• Taiwan Semiconductor was boosted by record-breaking revenue and a massive increase in planned capital expenditures to meet continued growth AI demand while ASML continued to play a key role.
• ClearBridge was encouraged by the rebound in Netflix after the streaming provider withdrew from a bidding war for Warner Bros. Discovery as the fundamental setup for its business remains robust.
• ClearBridge completed an exit from Salesforce this quarter after trimming the position as part of its actions to reduce software exposure over the past year.
• ClearBridge added two new positions in the health care sector with the additions of biopharmaceutical companies Roche and Alnylam Pharmaceuticals to improve the quality of health care holdings.

Key Takeaways

• Markets: Growth stocks sold off sharply in the first quarter as geopolitical conflict in the Middle East, rising bond yields and heightened scrutiny of AI-related returns pressured higher multiple equities. The Russell 1000 Growth

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