TCW Focused Equities Strategy

Marketable Securities Division

A concentrated, large cap value strategy of generally 25-40 securities seeking capital appreciation through fundamental research, analysis of a company's return on capital and cash flow, and a concentrated portfolio structure.

At-A-Glance

Investment Vehicles and Minimums Separate Account
For Institutions $5 Million
For High Net Worth Individuals $3 Million

Focused Equities Fund $2,000

Style

Investment Team

  • Tom McKissick
  • John Snider
Strategy Information
Product Name 1-mo 3-mo YTD
Annualized Performance
1-yr
3-yr 5-yr Since Inception
[07/20/1998]
TCW (Gross) 1.12% 5.24% 14.84% 14.84% 5.71% 14.42% 6.93%
TCW (Net) 1.06% 5.05% 14.03% 14.03% 4.97% 13.61% 6.14%
Russell 1000 Value Index 1.46% 5.33% 13.66% 13.66% 8.65% 14.04% 6.80%
as of 12/31/2017 (updated quarterly)

Click Here for detailed Performance Disclosures 

Investment Objective

The TCW Focused Equities strategy is a concentrated portfolio of approximately 25 to 40 attractively valued companies with market capitalizations generally exceeding $3 billion. The combination of focused, large cap value investing seeks to provide strong returns with below average risk.

Investment Philosophy 

Our investment discipline consists of identifying attractively valued companies which seeks to generate rising returns on capital. The strategy capitalizes on a basic principle of financial theory: a company's value is based on its expected future cash flows. When a company's return on capital rises, its cash flow grows and its value is more likely to increase. We have developed a detailed research process designed to identify attractively valued companies expected to generate rising returns on capital and growing cash flows. The process includes discussions with senior company executives, a thorough analysis of the business fundamentals that drive a company's return on capital, an assessment of stock market expectations for the company, and valuation.

Performance Returns

as of 12/31/2017 (updated quarterly)

Top Ten Holdings (%)

  Portfolio
Wells Fargo & Company 5.05
Adobe Systems 4.57
Union Pacific 4.39
EOG Resources 4.35
Alphabet 3.46
Dollar Tree 3.39
Las Vegas Sands 3.34
M&T Bank 3.34
Air Products and Chemicals 3.33
Danaher 3.31
as of 12/31/2017 (updated quarterly)

Sector Weight (%)

as of 12/31/2017 (updated quarterly)

Legal Disclosures


The source for all charts and tables above is TCW
Objective Disclosure

There can be no assurance that this strategy will be able to achieve its objectives.

Russell Trademark

Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes.  Russell® is a trademark of Russell Investment Group.

Index Disclosure

The index or indices cited herein are unmanaged groups of securities often taken as representative of those segments of the overall market and assume no reduction for fees and expenses in measuring returns. The securities in the index or indices may be substantially different from those in the strategy.

About Portfolio Values and Holdings

Portfolio characteristics and holdings are subject to change at any time. It should not be assumed that an investment in the securities listed was, or will be, profitable.

About Performance
Performance for any period not ending on a calendar quarter end is subject to adjustment at quarter end for accounts that are not present for the entire quarter. Past performance is no guarantee of future results.

This material is for general information purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security. Any issuers or securities noted in this document are provided as illustrations or examples only, for the limited purpose of analyzing general market or economic conditions and may not form the basis for an investment decision, nor are they intended to serve as investment advice. Any such issuers or securities are under periodic review by the portfolio management group and are subject to change without notice. TCW makes no representation as to whether any security or issuer mentioned in this document is now in any TCW portfolio. TCW, its officers, directors, employees or clients may have positions in securities or investments mentioned in this publication, which are subject to change without notice. Any information and statistical data contained herein derived from third party sources are believed to be reliable, but TCW does not represent that they are accurate, and they should not be relied on as such or be the basis for an investment decision.

An investment in the strategy described herein has risks, including the risk of losing some or all of the invested capital. An investor should carefully consider the risks and suitability of an investment strategy based on their own investment objectives and financial position. There is no assurance that the investment objectives and/or trends will come to pass or be maintained. The information contained herein may include preliminary information and/or “forward-looking statements.” Due to numerous factors, actual events may differ substantially from those presented herein. TCW assumes no duty to update any forward-looking statements or opinions in this document. This material comprises the assets under management of The TCW Group, Inc. and its subsidiaries, including TCW Investment Management Company LLC, TCW Asset Management Company LLC, and Metropolitan West Asset Management, LLC. Any opinions expressed herein are current only as of the time made and are subject to change without notice. The investment processes described herein are illustrative only and are subject to change. Past performance is no guarantee of future results. © 2017 TCW

Investment Team

  • Photo: Tom McKissick
    Tom McKissick
    Group Managing Director

    Mr. McKissick is a Group Managing Director responsible for co-managing the TCW Value strategies including Focused Equities and Pluris. In 1985, Mr. McKissick joined TCW as an Equity Analyst focusing on the oil and gas, utilities, telecommunications, consumer staples, and capital goods industries. Since 1990, he served as Portfolio Manager for the Core Value Equity group and founded the Core Value strategies in 1996. Mr. McKissick received a BA in Political Science from the University of California, Berkeley.

  • Photo: John Snider
    John Snider
    Group Managing Director

    Mr. Snider is a Group Managing Director responsible for co-managing the TCW Value strategies: Concentrated Value, Focused Value, and Pluris. Prior to joining TCW in early 2000, Mr. Snider was a Vice President and Portfolio Manager at Provident Investment Counsel. Before that, he worked as a Portfolio Manager at ARCO Investment Manage-ment Company responsible for the Large Cap Value Strategic Fund. Prior to managing investments, he held the position as the Director of Investor Relations and also man-aged a Corporate Finance and Profit Planning unit, both at ARCO. Mr. Snider received a BA in Quantitative Economics from Claremont McKenna College and an MBA from the University of Southern California. Mr. Snider is also the Chairman of the Investment Committee and the Vice Chairman of the Board of Trustees at the Mayfield Senior School in Pasadena.

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