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CLEARBRIDGE SMALL CAP GROWTH FUND

 

Schedule of investments (unaudited)    July 31, 2020

 

SECURITY

   SHARES      VALUE  
COMMON STOCKS - 99.9%      
COMMUNICATION SERVICES - 3.1%      

Diversified Telecommunication Services - 3.1%

     

Bandwidth Inc., Class A Shares

     676,800      $ 97,987,104 * 

Iridium Communications Inc.

     1,442,021        39,496,955 * 
     

 

 

 

TOTAL COMMUNICATION SERVICES

        137,484,059  
     

 

 

 
CONSUMER DISCRETIONARY - 11.3%      

Auto Components - 2.6%

     

Fox Factory Holding Corp.

     1,272,843        113,283,027 * 
     

 

 

 

Distributors - 1.0%

     

Core-Mark Holding Co. Inc.

     1,588,004        42,113,866  
     

 

 

 

Diversified Consumer Services - 3.8%

     

Chegg Inc.

     2,058,765        166,698,202 * 
     

 

 

 

Specialty Retail - 3.9%

     

Hudson Ltd., Class A Shares

     2,189,272        9,589,011 * 

Monro Inc.

     990,343        55,756,311  

National Vision Holdings Inc.

     2,958,722        94,649,517 * 

Vroom Inc.

     225,820        13,366,286 * 
     

 

 

 

Total Specialty Retail

        173,361,125  
     

 

 

 

TOTAL CONSUMER DISCRETIONARY

        495,456,220  
     

 

 

 
CONSUMER STAPLES - 6.4%      

Food & Staples Retailing - 5.1%

     

BJ’s Wholesale Club Holdings Inc.

     3,226,288        129,212,834 * 

Casey’s General Stores Inc.

     498,876        79,416,071  

Grocery Outlet Holding Corp.

     381,672        16,789,751 * 
     

 

 

 

Total Food & Staples Retailing

        225,418,656  
     

 

 

 

Food Products - 1.3%

     

Calavo Growers Inc.

     551,932        31,885,112  

Hain Celestial Group Inc.

     711,348        24,171,605 * 
     

 

 

 

Total Food Products

        56,056,717  
     

 

 

 

TOTAL CONSUMER STAPLES

        281,475,373  
     

 

 

 
ENERGY - 0.7%      

Energy Equipment & Services - 0.7%

     

Cactus Inc., Class A Shares

     1,056,199        23,891,221  

Newpark Resources Inc.

     3,670,520        6,937,283 * 
     

 

 

 

TOTAL ENERGY

        30,828,504  
     

 

 

 
FINANCIALS - 4.6%      

Banks - 1.0%

     

Western Alliance Bancorp

     1,284,962        46,194,384  
     

 

 

 

 

See Notes to Schedule of Investments.

 

    

 

   ClearBridge Small Cap Growth Fund 2020 Quarterly Report      

 

1


CLEARBRIDGE SMALL CAP GROWTH FUND

 

Schedule of investments (unaudited) (cont’d)    July 31, 2020

 

SECURITY

   SHARES      VALUE  

Capital Markets - 1.4%

     

Assetmark Financial Holdings Inc.

     659,674      $ 18,371,921 * 

PJT Partners Inc., Class A Shares

     791,912        42,391,049  
     

 

 

 

Total Capital Markets

        60,762,970  
     

 

 

 

Insurance - 2.2%

     

American Equity Investment Life Holding Co.

     1,594,471        40,579,287  

Trupanion Inc.

     1,071,543        54,187,930 * 
     

 

 

 

Total Insurance

        94,767,217  
     

 

 

 

TOTAL FINANCIALS

        201,724,571  
     

 

 

 
HEALTH CARE - 26.2%      

Biotechnology - 4.6%

     

Amicus Therapeutics Inc.

     2,865,961        41,413,137 * 

Biohaven Pharmaceutical Holding Co. Ltd.

     284,580        18,224,503 * 

CareDx Inc.

     306,052        10,206,834 * 

Heron Therapeutics Inc.

     3,047,372        49,641,690 * 

Invitae Corp.

     1,884,127        55,016,508 * 

Ultragenyx Pharmaceutical Inc.

     349,560        27,321,610 * 
     

 

 

 

Total Biotechnology

        201,824,282  
     

 

 

 

Health Care Equipment & Supplies - 10.3%

     

CryoPort Inc.

     545,250        18,069,585 * 

Insulet Corp.

     722,664        146,960,951 * 

Integra LifeSciences Holdings Corp.

     1,650,516        78,812,139 * 

iRhythm Technologies Inc.

     202,090        25,156,163 * 

Penumbra Inc.

     656,858        145,763,359 * 

Silk Road Medical Inc.

     788,546        36,635,847 * 
     

 

 

 

Total Health Care Equipment & Supplies

        451,398,044  
     

 

 

 

Health Care Providers & Services - 2.1%

     

Progyny Inc.

     2,118,070        56,393,614 * 

Surgery Partners Inc.

     2,277,966        34,784,541 * 
     

 

 

 

Total Health Care Providers & Services

        91,178,155  
     

 

 

 

Health Care Technology - 2.7%

     

Health Catalyst Inc.

     903,718        31,539,758 * 

Livongo Health Inc.

     348,920        44,400,070 * 

Vocera Communications Inc.

     1,439,293        44,287,046 * 
     

 

 

 

Total Health Care Technology

        120,226,874  
     

 

 

 

Life Sciences Tools & Services - 5.3%

     

ICON PLC

     735,778        136,457,388 * 

Syneos Health Inc.

     1,569,849        97,942,879 * 
     

 

 

 

Total Life Sciences Tools & Services

        234,400,267  
     

 

 

 

 

See Notes to Schedule of Investments.

 

 

   

 

2

      ClearBridge Small Cap Growth Fund 2020 Quarterly Report  


CLEARBRIDGE SMALL CAP GROWTH FUND

 

Schedule of investments (unaudited) (cont’d)    July 31, 2020

 

SECURITY

   SHARES      VALUE  

Pharmaceuticals - 1.2%

     

Pacira BioSciences Inc.

     998,091      $ 52,509,567 * 
     

 

 

 

TOTAL HEALTH CARE

        1,151,537,189  
     

 

 

 
INDUSTRIALS - 14.3%      

Aerospace & Defense - 1.2%

     

Aerojet Rocketdyne Holdings Inc.

     1,254,458        51,746,392 * 
     

 

 

 

Air Freight & Logistics - 2.5%

     

Forward Air Corp.

     880,138        45,758,375  

XPO Logistics Inc.

     854,798        64,126,946 * 
     

 

 

 

Total Air Freight & Logistics

        109,885,321  
     

 

 

 

Building Products - 5.4%

     

Masonite International Corp.

     729,645        61,545,556 * 

Trex Co. Inc.

     1,261,182        175,720,488 * 
     

 

 

 

Total Building Products

        237,266,044  
     

 

 

 

Commercial Services & Supplies - 0.7%

     

US Ecology Inc.

     900,283        31,221,814  
     

 

 

 

Electrical Equipment - 0.4%

     

Bloom Energy Corp., Class A Shares

     1,204,086        14,641,686 * 
     

 

 

 

Machinery - 3.2%

     

Albany International Corp., Class A Shares

     480,835        23,118,547  

IDEX Corp.

     425,207        70,082,618  

Tennant Co.

     721,933        48,095,176  
     

 

 

 

Total Machinery

        141,296,341  
     

 

 

 

Trading Companies & Distributors - 0.9%

     

H&E Equipment Services Inc.

     1,744,180        30,680,126  

MRC Global Inc.

     1,417,876        8,436,362 * 
     

 

 

 

Total Trading Companies & Distributors

        39,116,488  
     

 

 

 

TOTAL INDUSTRIALS

        625,174,086  
     

 

 

 
INFORMATION TECHNOLOGY - 31.7%      

Communications Equipment - 1.0%

     

Viavi Solutions Inc.

     2,999,582        41,484,219 * 
     

 

 

 

Electronic Equipment, Instruments & Components - 1.2%

     

Brain Corp.

     1,643,747        9,566,608 *(a)(b)(c) 

nLight Inc.

     907,818        21,034,143 * 

OSI Systems Inc.

     333,366        23,655,651 * 
     

 

 

 

Total Electronic Equipment, Instruments & Components

        54,256,402  
     

 

 

 

IT Services - 4.4%

     

Cardtronics PLC, Class A Shares

     825,197        18,426,649 * 

Shift4 Payments Inc., Class A Shares

     270,950        10,377,385 * 

Wix.com Ltd.

     564,043        163,843,211 *(d) 
     

 

 

 

Total IT Services

        192,647,245  
     

 

 

 

 

See Notes to Schedule of Investments.

 

    

 

   ClearBridge Small Cap Growth Fund 2020 Quarterly Report      

 

3


CLEARBRIDGE SMALL CAP GROWTH FUND

 

Schedule of investments (unaudited) (cont’d)    July 31, 2020

 

SECURITY

    SHARES      VALUE  

Semiconductors & Semiconductor Equipment - 8.0%

       

Brooks Automation Inc.

       634,130      $ 34,528,378  

Inphi Corp.

       1,030,477        134,642,125 * 

Lattice Semiconductor Corp.

       1,525,074        47,414,551 * 

Monolithic Power Systems Inc.

       500,986        132,766,300  
       

 

 

 

Total Semiconductors & Semiconductor Equipment

          349,351,354  
       

 

 

 

Software - 17.1%

       

Aspen Technology Inc.

       701,415        68,219,623 * 

Cornerstone OnDemand Inc.

       1,724,212        61,226,768 * 

DocuSign Inc.

       172,202        37,338,560 * 

Envestnet Inc.

       856,103        69,515,564 * 

HubSpot Inc.

       444,276        104,231,592 * 

Jamf Holding Corp.

       123,340        5,007,604 * 

Model N Inc.

       485,350        18,666,561 * 

New Relic Inc.

       829,267        58,803,323 * 

PagerDuty Inc.

       1,806,371        55,058,188 * 

Pluralsight Inc., Class A Shares

       661,386        14,001,542 * 

Qualys Inc.

       826,613        102,070,173 * 

Smartsheet Inc., Class A Shares

       540,921        25,823,568 * 

Varonis Systems Inc.

       760,142        82,361,386 * 

Yext Inc.

       2,963,832        49,851,654 * 
       

 

 

 

Total Software

          752,176,106  
       

 

 

 

TOTAL INFORMATION TECHNOLOGY

          1,389,915,326  
       

 

 

 
MATERIALS - 1.0%        

Chemicals - 1.0%

       

Balchem Corp.

       446,319        44,747,943  
       

 

 

 
REAL ESTATE - 0.6%        

Real Estate Management & Development - 0.6%

       

Redfin Corp.

       592,594        24,640,058 * 
       

 

 

 

TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS
(Cost - $2,427,739,492)

 

     4,382,983,329  
       

 

 

 
     RATE               
SHORT-TERM INVESTMENTS - 0.3%        

JPMorgan 100% U.S. Treasury Securities Money Market Fund, Institutional Class

     0.039 %      11,001,155        11,001,155  

Western Asset Premier Institutional U.S. Treasury Reserves, Premium Shares

     0.075 %      2,750,289        2,750,289 (e)  
       

 

 

 

TOTAL SHORT-TERM INVESTMENTS
(Cost - $13,751,444)

          13,751,444  
       

 

 

 

TOTAL INVESTMENTS - 100.2%
(Cost - $2,441,490,936)

          4,396,734,773  

Liabilities in Excess of Other Assets - (0.2)%

          (8,954,434 ) 
       

 

 

 

TOTAL NET ASSETS - 100.0%

        $ 4,387,780,339  
       

 

 

 

 

See Notes to Schedule of Investments.

 

 

   

 

4

      ClearBridge Small Cap Growth Fund 2020 Quarterly Report  


CLEARBRIDGE SMALL CAP GROWTH FUND

 

Schedule of investments (unaudited) (cont’d)    July 31, 2020

 

*

Non-income producing security.

 

(a)

Security is valued in good faith in accordance with procedures approved by the Board of Trustees (Note 1).

 

(b)

Security is valued using significant unobservable inputs (Note 1).

 

(c)

Restricted security (Note 3).

 

(d)

All or a portion of this security is pledged as collateral for written options.

 

(e)

In this instance, as defined in the Investment Company Act of 1940, an “Affiliated Company” represents Fund ownership of at least 5% of the outstanding voting securities of an issuer, or a company which is under common ownership or control with the Fund. At July 31, 2020, the total market value of investments in Affiliated Companies was $2,750,289 and the cost was $2,750,289 (Note 2).

 

SCHEDULE OF WRITTEN OPTIONS               
EXCHANGE-TRADED WRITTEN OPTIONS               

SECURITY

   EXPIRATION
DATE
     STRIKE
PRICE
     CONTRACTS      NOTIONAL
AMOUNT
     VALUE  
Wix.com Ltd., Call
(Premiums received - $459,634)
     8/21/20      $ 320.00        783      $ 22,744,584      $ (508,950 ) 

This Schedule of Investments is unaudited and is intended to provide information about the Fund’s investments as of the date of the schedule. Other information regarding the Fund is available in the Fund’s most recent annual or semi-annual shareholder report.

 

See Notes to Schedule of Investments.

 

    

 

   ClearBridge Small Cap Growth Fund 2020 Quarterly Report      

 

5


Notes to Schedule of Investments (unaudited)

 

1. Organization and significant accounting policies

ClearBridge Small Cap Growth Fund (the “Fund”) is a separate diversified investment series of Legg Mason Partners Equity Trust (the “Trust”). The Trust, a Maryland statutory trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).

(a) Investment valuation. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. (Eastern Time). If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund’s Board of Trustees.

The Board of Trustees is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North Atlantic Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee, pursuant to the policies adopted by the Board of Trustees, is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Board of Trustees. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.

 

 

   

 

6

   


Notes to Schedule of Investments (unaudited) (continued)

 

The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.

For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Trustees, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board of Trustees quarterly.

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed below:

 

  •  

Level 1 – quoted prices in active markets for identical investments

 

  •  

Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 

  •  

Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

 

    

 

    

 

7


Notes to Schedule of Investments (unaudited) (continued)

 

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities carried at fair value:

 

ASSETS

 

DESCRIPTION

   QUOTED PRICES
(LEVEL 1)
     OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2)
     SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)
     TOTAL  

Long-Term Investments†:

           

Common Stocks:

           

Information Technology

   $ 1,380,348,718        —        $ 9,566,608      $ 1,389,915,326  

Other Common Stocks

     2,993,068,003        —          —          2,993,068,003  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Long-Term Investments

     4,373,416,721        —          9,566,608        4,382,983,329  
  

 

 

    

 

 

    

 

 

    

 

 

 

Short-Term Investments†

     13,751,444        —          —          13,751,444  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Investments

   $ 4,387,168,165        —        $ 9,566,608      $ 4,396,734,773  
  

 

 

    

 

 

    

 

 

    

 

 

 

LIABILITIES

 

DESCRIPTION

   QUOTED PRICES
(LEVEL 1)
     OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2)
     SIGNIFICANT
UNOBSERVABLE
INPUTS

(LEVEL 3)
     TOTAL  

Other Financial Instruments:

           

Written Options

   $ 508,950        —          —        $ 508,950  

 

†

See Schedule of Investments for additional detailed categorizations.

2. Transactions with affiliated company

As defined by the 1940 Act, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. Based on the Fund’s relative ownership, the following company was considered an affiliated company for all or some portion of the period ended July 31, 2020. The following transactions were effected in shares of such company for the period ended July 31, 2020.

 

     Affiliate
Value at
October 31,

2019
     Purchased      Sold      Realized
Gain
(Loss)
     Interest
Income
     Net Increase
(Decrease) in
Unrealized
Appreciation
(Depreciation)
     Affiliate
Value at
July 31,
2020
 
     Cost      Shares      Cost      Shares  
Western Asset                           
Premier                           
Institutional U.S.                           
Treasury Reserves,                           
Premium Shares      —        $ 102,199,983        102,199,983      $ 99,449,694        99,449,694        —        $ 39,813        —        $ 2,750,289  

 

 

   

 

8

   


Notes to Schedule of Investments (unaudited) (continued)

 

3. Restricted securities

The following Fund investment is restricted as to resale and, in the absence of a readily ascertainable market value, is valued in good faith in accordance with procedures approved by the Board of Trustees.

 

Security

   Number of
Shares
     Acquisition
Date
     Cost      Fair Value
at 7/31/2020
     Value Per
Share
     Percent of
Net Assets
 
Brain Corp.      1,643,747        4/20      $ 8,671,587      $ 9,566,608      $ 5.82        0.22 % 

 

 

    

 

    

 

9