ClearBridge Large Cap Growth Strategy’s Thoughts on Eli Lilly and Company (LLY)

Core Insights - ClearBridge Investments released its fourth-quarter 2025 investor letter for the ClearBridge Large Cap Growth Strategy, emphasizing an investment philosophy focused on undervalued leading companies with growth potential [1] - Large-cap stocks showed strength in the quarter, driven by strong earnings from mega-cap companies and enthusiasm for generative AI, although the ClearBridge strategy underperformed the Russell 1000 Growth Index by approximately 900 basis points for the year [1] - The underperformance was attributed to underweight exposure to mega-cap AI beneficiaries and lower-quality AI-related names [1] Company Highlights - Eli Lilly and Company (NYSE:LLY) was highlighted in the investor letter, with a one-month return of 9.78% and a 52-week gain of 40.76%, closing at $1,108.09 per share with a market capitalization of $993.355 billion on January 7, 2026 [2] - The ClearBridge strategy noted that the exit from Eli Lilly was premature, as the company secured a deal with the U.S. government to offer GLP-1 treatments to Medicare and Medicaid patients, leading to a surge in share price during the fourth quarter [3] - Eli Lilly's revenue grew by 54% in the third quarter of 2025 compared to the same period last year, indicating strong performance despite the company's previous underperformance in the ClearBridge portfolio [4]