ClearBridge Investments, a global equity manager, recently published first-quarter 2026 commentary for its “Small Cap Growth Strategy”. The beginning of 2026 highlighted the significance of narratives, as the rapidly changing technological and geopolitical dynamics influenced market direction, leading the Russell 2000 Growth Index to decline by 2.8% for the quarter. Despite this, small-cap stocks continued to perform well. Market returns diversified in the first quarter, following a period of market concentration, favoring smaller-cap, value-oriented, and cyclical sectors. Concerns regarding the AI capital expenditure cycle led to increased sector dispersion.

The ClearBridge Small Cap Growth Strategy outperformed its Russell 2000 Growth Index benchmark due to strong stock selection, particularly in industrials and consumer staples. The Strategy remains focused on identifying companies with sustainable, unique growth drivers, while reevaluating companies that may be affected by new technology. Please review the Strategy’s top five holdings to gain insights into their key selections for 2026.

Focus on Charles River Laboratories

In its first-quarter 2026 investor letter, ClearBridge Small Cap Growth Strategy highlighted stocks such as Charles River Laboratories International, Inc. (NYSE:CRL) as its newly acquired position. Charles River Laboratories International, Inc. is a contract research organization that provides drug discovery, development, and safety testing services to pharmaceutical and biotechnology firms.

Market Snapshot: CRL (As of April 9, 2026)

  • Closing Price: $175.55 per share
  • One-Month Return: 12.92%
  • 52-Week Gain: 75.99%
  • Market Capitalization: $8.66 billion

ClearBridge Small Cap Growth Strategy stated the following regarding Charles River Laboratories International, Inc. (NYSE:CRL) in its Q1 2026 investor letter:

"We continued to deliver strong new idea generation with eight new portfolio additions in the quarter. Charles River Laboratories International, Inc. (NYSE:CRL), in the health care sector, is the leading preclinical CRO providing essential drug research services to biopharmaceutical customers. Its scale and integrated platform position the company to benefit disproportionately as preclinical research activity and biotech funding recover."