TCW Global Artificial Intelligence Equity Strategy

Marketable Securities Division

A global strategy that seeks to achieve capital appreciation primarily through investing in high quality growth businesses that benefit from rising influences of artificial intelligence.

At-A-Glance

AUM or Committed to Management

$1.8 Billion (as of 09/30/18)
Investment Vehicles and Minimums Separate Account
For Institutions U.S.: $10 Million
For High Net Worth Individuals $5 Million

Style

Investment Team

  • Jeffrey W. Lin, CFA
  • Thomas Lee
Strategy Information
Product Name 1-mo 3-mo YTD
Annualized Performance
1-yr
3-yr 5-yr Since Inception
[11/30/2016]
TCW (Gross) -1.38% 3.60% 18.49% 25.85% 0.00% 0.00% 30.53%
TCW (Net) -1.44% 3.41% 17.82% 24.90% 0.00% 0.00% 29.55%
Russell 3000 Growth 0.33% 8.88% 16.99% 25.89% 0.00% 0.00% 26.33%
as of 09/30/2018 (updated quarterly)

Click here for detailed Performance Disclosures 

Investment Objective

The strategy seeks to maximize total return, with an emphasis on the technological leaders in position to grow over the medium-and long-term as industry demand increases.

Investment Philosophy

The Global Artificial Intelligence Equity strategy reinvests cash flows into 25-60 publically listed companies with a minimum market capitalization of $300 million that capitalize on innovations in analysis, forecasting, efficiency, automation, consistency and scale. The portfolio includes businesses with barriers to competition that benefit our investment theme in areas ranging from next-generation datacenters, cloud computing, internet of things and autonomous vehicles. The strategy uses a disciplined bottom-up fundamental analysis that allocates across a wide range of sectors such as the following:

  • Information Technology
  • Consumer Discretionary
  • Industrials
  • Health Care
  • Real Estate
  • Telecommunication Services

Our team manages risk, which is driven by conviction, valuation considerations and leverage to artificial intelligence.

Top Ten Holdings (%)

  Portfolio
Amazon.com 4.66
Facebook 4.62
NVIDIA 4.13
Micron Technology 3.86
ServiceNow 3.58
Microsoft 3.42
salesforce.com 3.38
Adobe Systems 3.37
Intel 2.97
Splunk 2.92
as of 6/30/2018 (updated quarterly)

Sector Weight (%)

as of 6/30/2018 (updated quarterly)
Sector weights include securities only & don't include cash

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.

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.


Russell 3000 Growth Index- Measures the performance of those companies in the Russell Midcap Index with higher price-to-book ratios and higher forecasted growth values. The stocks are also members of the Russell 1000 Growth Index.
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. © 2018 TCW

Investment Team

  • Photo: Jeffrey W. Lin, CFA
    Jeffrey W. Lin, CFA
    Lead Portfolio Manager

    Mr. Lin is the lead Portfolio Manager for the TCW Global Artificial Intelligence Equity and TCW Global Technology strategies. Additionally, Jeffrey is a Senior Equity Analyst and his coverage responsibilities include computer hardware & storage, electronics manufacturing systems (EMS), software, IT services, and autos. Mr. Lin has more than 25 years of industry experience in the technology sector with roles as Engineer, buy and sell-side Analyst, venture capitalist, CFO of a communications equipment start-up and Co-Portfolio Manager of a technology sector hedge fund. Mr. Lin began his investment career at Montgomery Securities in 1994 following electronics manufacturing and computer storage. He joined Paul Allen’s Vulcan Ventures in 1999. At Vulcan, three of his investments went public and three were acquired by publicly traded companies. In 2001, he served as the CFO of Zaffire, an optical equipment company funded by Kleiner Perkins, until the company’s sale to Centerpoint Broadband. From 2002-2004, he was an Analyst at Provident Investment Counsel and followed computer and communications equipment as well as communications services. Most recently, he was a Co-Portfolio Manager of Conquistador Ventures, a technology sector focused hedged fund. Mr. Lin holds a BS in Electrical Engineering with an emphasis in Communications and Computer Architecture and an MBA from the University of Southern California. He is a CFA charterholder.

  • Photo: Thomas Lee
    Thomas Lee
    Portfolio Manager

    Mr. Lee is a Portfolio Manager for the TCW Global Artificial Intelligence Equity and TCW Global Technology strategies. Mr. Lee also is an Analyst covering Semiconductors and Semi-Cap Equipment as well as Telecom Equipment and Services. Mr. Lee has nearly 15 years of technology investment experience having previously served as a Senior Research Analyst at Empire Capital, a long/short TMT hedge fund. Prior to Empire Capital, he worked for Goldman Sachs as an Analyst for several years and UBS as a Research Associate after beginning his career at Motorola in various functional roles (engineering, market analysis, product management). Mr. Lee holds a BS and MS in Electrical Engineering from the University of Illinois at Urbana-Champaign and an MBA from the University of Chicago.

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