TCW Concentrated Core Strategy

Quarterly Commentary

September 30, 2017

Key Issues

  • For the eighth consecutive quarter, U.S. equity markets finished in positive territory with each major index finishing the period near all-time highs. Stock market volatility remained near historic lows as the S&P’s average daily change during the period was only 0.3% (lowest since 1968). The third quarter began with encouraging economic data: July consumer confidence index rose to 121.1, U.S. real GDP bounced back to +2.6% annual rate in 2Q and unemployment claims remained low. Corporate earnings buoyed the market advance as S&P 500 second quarter earnings season were solid. As expected, the Fed tightened for the second time in 2017 but real rates remain negative, despite full employment and a crisis-era monetary policy. The Fed announced it intended to start its balance sheet normalization program (reducing the size of its ~$4.5T balance sheet) in October. As we head to the fourth quarter, focus turns to the upcoming earnings season, increasing geopolitical tension abroad and whether the “baton handoff” from monetary to fiscal stimulus can be accomplished via tax reform and pro-growth industrial policies...

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Legal Disclosures

For Information Only

This publication is for general information purposes only and is not intended  to offer investment advice or be the basis for an investment decision.

Not An Offer

Nothing in this document constitutes an offer to sell or the solicitation of an offer to buy securities. Investing in any strategy has risks.

Price Volatility

An account is subject to price volatility. The value of an account’s portfolio will change as the prices of its investments go up or down. Because an account typically invests in less than 40 equity securities at any time, it may have greater price volatility than a more diversified portfolio. Before embarking on the described investment program, an investor should carefully consider the risks and suitability of the described strategy based on their own investment objectives and financial position. The strategy will not invest in initial public offerings.

Forward Looking Statement

The information contained herein may include estimates, projections and other “forward-looking statements.” Actual events may differ substantially from those presented herein. TCW assumes no duty to update any such forward-looking statements or any other information or opinions in this document. TCW makes no representation that future investment performance will conform to past performance and it should never be assumed that past performance foretells future performance. TCW's portfolio managers make investment decisions based on various sources of information and analysis and are not necessarily based on the economic information set forth herein.

Past Performance

TCW makes no representation that future investment performance will conform to past performance and it should never be assumed that past performance foretells future performance. TCW's portfolio managers make investment decisions based on various sources of information and analysis and are not necessarily based on the economic information set forth herein.

A Word About Risk

Equity investments entail equity risk and price volatility risk. The value of stocks and other equity securities will change based on changes in a company's financial condition and in overall market and economic conditions.

Subject to Change

Any opinions expressed are current only as of the time made and are subject to change without notice. TCW assumes no duty to update any such statements. The views expressed herein are solely those of the author and do not represent the views of TCW as a firm or of any other portfolio manager or employee of TCW. Any holdings of a particular company or security discussed herein are under periodic review by the author and are subject to change at any time, without notice. In addition, TCW manages a number of separate strategies and portfolio managers in those strategies may have differing views or analysis with respect to a particular company, security or the economy than the views expressed herein.


The index is not available for direct investment; therefore its performance does not reflect a reduction for fees or expenses incurred in managing a portfolio. The securities in the index may be substantially different from those in the strategy.