Market Overview - The Russell 2000 Index increased by 12.4% in Q3 2025, achieving a new all-time high after nearly three years, driven by improved earnings revisions, optimism around Federal Reserve rate cuts, and a strong appetite for speculative growth stocks [2] - Retail investors played a significant role in this rally, focusing on a narrow set of stocks, which led to both breadth and concentration in returns [2] - Despite the gains, volatility remained low, and valuations were stretched, creating a sense of complacency amid ongoing policy and macroeconomic risks [3] Portfolio Performance - The ClearBridge Small Cap Strategy had positive absolute performance but slightly underperformed the benchmark [4] - The materials sector was a key contributor, with MP Materials benefiting from new supply agreements with the U.S. Department of Defense and government support for rare earth production [5] - Information technology also performed well, with TeraWulf gaining from a rebound in cryptocurrency prices and a significant investment from Google [6] Sector Performance - Communication services was the leading detractor, with companies like Criteo and Gambling.com facing sector-specific challenges despite positive earnings [7] - Consumer discretionary also showed weakness, particularly with Murphy USA reporting lower-than-expected earnings due to various operational challenges [8] Portfolio Positioning - New positions were initiated in Quaker Houghton and Avidity Biosciences, with the former expected to improve margins and returns, and the latter having a promising pipeline for RNA-based therapeutics [9][10] - The position in Vivid Seats was exited due to increasing competitive pressures in the secondary ticketing market [11] Outlook - The environment remains challenging for active small cap investors, with a focus on speculative stocks making it difficult for fundamentally driven strategies to perform [13] - However, there are signs of improvement in earnings revisions and a potential shift back towards companies with sustainable business models [14] - The strategy emphasizes high-quality businesses and strong balance sheets, with a belief that patience and discipline will ultimately yield value [15] Portfolio Highlights - The ClearBridge Small Cap Strategy underperformed the Russell 2000 Index, with gains in 10 of 11 sectors, while stock selection in communication services and consumer discretionary weighed on performance [16][17] - Key contributors included MP Materials and TeraWulf, while Murphy USA and Gambling.com were among the largest detractors [18] - New positions were also established in various sectors, including healthcare and consumer staples, while exiting positions in several companies across different sectors [19]

song says apparently three is the magic number because in the last 10 minutes we have our we have our third dose of some breaking news this one on the StubHub IPO Leslie Picker has that. >> Yes, we'll see if anything comes beyond this. Uh but you're right.StubHub updating its S1 filing, effectively restarting the company's process to go public. I'm told by a person familiar with the matter that the online ticket marketplace is aiming to kick off its road show after Labor Day and make its debut later in Sept ...