ClearBridge Global Value Improvers Strategy Q3 2026 Commentary
Global equities posted modest gains in the third quarter, and value extended its lead over growth.
The benchmark MSCI World Value Index returned 3.8%, extending its year-to-date lead over the MSCI World Growth Index, which finished flat.
Leadership shifted during the quarter: value led as a sharp momentum selloff in July unwound crowded positions in AI-related semiconductor and infrastructure stocks; growth rebounded in August on strong earnings and renewed AI optimism and continued to outperform in September as rising bond yields hit cyclical and rate-sensitive stocks.
Within the benchmark, renewed conflict in the Middle East drove oil prices sharply higher, making energy one of the strongest sectors.
The Federal Reserve's first rate increase since 2023 and a sharp rise in Treasury yields weighed on rate-sensitive stocks, and utilities were the weakest sector.
By region, the benchmark's Japanese constituents led, followed by the U.K.
and North America, while continental Europe slipped.
The ClearBridge Global Value Improvers Strategy underperformed its MSCI World Value Index benchmark during the third quarter, as weak stock selection in industrials, health care and communication services outweighed gains in financials and materials.
Both stock selection and sector allocation detracted, but the quarter was overwhelmingly a stock selection story.
Industrials were the largest relative detractor, hurt by both our overweight and stock selection.
Vertiv (VRT), which supplies power and thermal management equipment to data centers, and Siemens Energy (SMEGF), an energy technology company, fell in July alongside other AI-infrastructure peers.
Chinese battery maker Contemporary Amperex Technology (CATL) (CTATF) shares dropped on concerns that automakers are designing their own battery cells and adding suppliers.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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