Large Cap Growth fund seekers should not consider taking a look at ClearBridge Aggressive Growth A (SHRAX) at this time. SHRAX carries a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
We classify SHRAX in the Large Cap Growth category, an area rife with potential choices. Large Cap Growth funds invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. To be considered large-cap, companies must have a market cap over $10 billion.
History of Fund/Manager
Franklin is responsible for SHRAX, and the company is based out of San Mateo, CA. ClearBridge Aggressive Growth A made its debut in October of 1983, and since then, SHRAX has accumulated about $3.78 billion in assets, per the most up-to-date date available. The fund is currently managed by Aram E. Greene who has been in charge of the fund since March of 2021.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 4.23%, and it sits in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 14.53%, which places it in the middle third during this time-frame.
It is important to note that the product’s returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund’s [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund’s performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of SHRAX over the past three years is 14.94% compared to the category average of 12.29%. The fund’s standard deviation over the past 5 years is 16.78% compared to the category average of 14.08%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.98, which means it is hypothetically as volatile as the market at large. Another factor to consider is alpha, as it reflects a portfolio’s performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. SHRAX has generated a negative alpha over the past five years of -8.11, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.