ClearBridge Large Cap Value ESG Portfolios underperformed in Q4 2025. The funds tracking large cap value stocks with environmental, social, and governance criteria fell behind their benchmark during the quarter. Quality stocks, which typically form a significant portion of ESG-focused portfolios, experienced notable weakness during this period. This underperformance highlights the ongoing challenges facing value-oriented investment strategies that prioritize sustainability metrics. Investors in ESG funds should monitor how portfolio managers navigate the tension between value investing principles and environmental criteria. Market conditions in the final quarter favored different segments, creating headwinds for traditional value approaches even with strong governance standards.