Legg Mason has launched a new mutual fund, the Legg Mason BW Dynamic Large Cap Value Fund which will be sub-advised by Brandywine Global Investment Management’s diversified value equity team.
The Fund’s broad objective is to provide long-term capital appreciation by quantitatively investing in U.S. equities. The Fund and its underlying strategy have a quantitative focus driven by three key factors: valuation, quality and sentiment.
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The proprietary blend is used to identify stocks that have the potential to deliver the strategy’s innovative, dynamic shifting tool, which is unique in the marketplace. The tool adjusts the portfolio to favor deeper value stocks when the model indicates that valuation dispersion has peaked and begun to narrow.
On the contrary, when valuation dispersion has troughed, the tool shifts the portfolio closer to the index’s valuation. This proprietary blend of quantitative selection and dynamic shifting seeks to both mitigate downside volatility and potentially enhance long-term returns.
The underlying investment strategy has been used to manage institutional client accounts since January 1, 2007.
"We are excited to make this innovative strategy available in mutual fund form, broadening access to a wider range of investors," notes Michael J. Fleisher, co-portfolio manager for the new Fund. "Our disciplined investment process helps our clients to avoid becoming victims of behavioral biases. We will work diligently to generate consistent, repeatable results."
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By GlobalDataAll investing involves risk. Equity securities are subject to price fluctuation and possible loss of principal. Large-capitalization value stocks may underperform the overall equity market for long periods.
The manager’s selection process may prove incorrect, which may have a negative impact on the Fund’s performance. International investments are subject to special risks including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets.
The value of the Fund’s investments held for cash management or defensive investing purposes may be affected by changing interest rates and changes in the underlying investments’ credit ratings.
