TCW Securitized Opportunities Strategy

Marketable Securities Division

An opportunistic, enhanced total return fixed income strategy that emphasizes residential mortgage, commercial mortgage, and asset-backed securities. The strategy is not managed within a prescribed duration range or credit limitation, and may vary greatly over time.

At-A-Glance

AUM or Committed to Management

$4.4 Billion (as of 12/31/17)
Investment Vehicles and Minimums Separate Account $75 Million
Limited Partnership $1 Million

Investment Team

  • Bryan T. Whalen, CFA
  • Mitch A. Flack
  • Scott Austin, CFA
  • Harrison S. Choi
Strategy Information
Product Name 1-mo 3-mo YTD
Annualized Performance
1-yr
3-yr 5-yr Since Inception
[12/31/1991]
TCW (Gross) 0.31% 1.27% 6.88% 6.88% 4.15% 5.53% 14.22%
TCW (Net) 0.22% 1.02% 5.81% 5.81% 3.11% 4.47% 12.55%
Bloomberg Barclays U.S. Aggregate Bond Index 0.46% 0.39% 3.54% 3.54% 2.24% 2.10% 5.55%
as of 12/31/2017 (updated quarterly)

Click here for detailed Performance Disclosures 

Investment Objective

The goal of TCW Securitized Opportunities is to significantly outperform the Barclays Capital U.S. Aggregate Bond Index over a full market cycle. The strategy seeks to generate high returns, historically similar to the equity market but with lower volatility over the long term. TCW believes that the management team’s application of its extensive experience and committed research will add value to the investment process and enable this strategy to take advantage of market mispricings, as well as periods of market illiquidity and dislocation.

Philosophy 

Central to the TCW Securitized Opportunities investment philosophy is the belief that even in “normal” times, the securitized markets present valuation complexities that, when combined with traditional fixed income valuation factors, give rise to pricing inefficiencies that can be exploited by informed investors. Negative investor psychology, supply-demand imbalances, the lack of analytical resources, the lack of extensive experience required to understand the nuances, or a combination of such factors, work to create a barrier to entry in this market and result in opportunities for investors with the experience and resources to selectively invest.  By virtue of our constant involvement in the securitized products market, TCW believes it is well positioned to exploit the inefficiencies available in this complex sector. 

Performance Returns

as of 12/31/2017 (^ Annualized Performance 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.

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: Bryan T. Whalen, CFA
    Bryan T. Whalen, CFA
    Group Managing Director

    Mr. Whalen is a Generalist Portfolio Manager in the Fixed Income group. Mr. Whalen joined TCW in 2009 during the acquisition of Metropolitan West Asset Management LLC (MetWest) as co-head of the Securitized Products division. Prior to joining TCW, Mr. Whalen was a Partner and Co-head of MetWest’s Securitized Products division. Prior to joining MetWest in 2004, he was a Director in the Fixed Income department at Credit Suisse First Boston in New York. Previously, he was a Vice President at Donaldson, Lufkin & Jenrette. Mr. Whalen earned a BA in Economics from Yale University. He is a CFA charterholder.

  • Photo: Mitch A. Flack
    Mitch A. Flack
    Managing Director

    Mr. Flack has been with TCW since 2009 as a Specialist Portfolio Manager in the Fixed Income group where he Co-heads the Securitized Products division. Previously with Metropolitan West Asset Management LLC (MetWest), Mr. Flack served as a Partner and Co-head of MetWest’s Structured Products division. Prior to joining MetWest in 2001, he was a Managing Director at Bear Stearns & Co. He was also with Bankers Trust, where he marketed derivative products to financial institutions after he served as Sen-ior Vice President and Chief Investment Officer at Southern California Savings. He began his career with Weyerhaeuser Mortgage Company. Mr. Flack holds a BA in Business Economics from the University of California, Santa Barbara and an MBA from the University of Chicago Booth School of Business.

  • Photo: Scott Austin, CFA
    Scott Austin, CFA
    Managing Director

    Mr. Austin is a Specialist Portfolio Manager in the Fixed Income group and co-heads the Securitized Products Division. Mr. Austin joined TCW in 2009 during the acquisition of Metropolitan West Asset Management LLC (MetWest). Since joining MetWest in 2006, he has traded a variety of mortgage-backed, asset-backed, and commercial mortgage-backed securities. He was previously an associate director for UBS in the fixed income sales department. While at UBS, he provided institutional sales coverage for investors in ABS, MBS, and CMBS products. Mr. Austin earned a BA in Economics from Yale University. He is a CFA charterholder.

  • Photo: Harrison S. Choi
    Harrison S. Choi
    Managing Director

    Mr. Choi is a Specialist Portfolio Manager in the Fixed Income group and co-heads the Securitized Products Division. Mr. Choi joined TCW in 2009 during the acquisition of Metropolitan West Asset Management LLC (MetWest). Since joining MetWest in January 2007, he has traded a variety of non-agency mortgage-backed securities. He was previously a Director at Sparta Group LLC where he traded fixed income relative value and macro strategies within the interest rate derivatives market. Prior to that, he worked on alternative investment strategies at Western Asset Management Company (WAMCO). Mr. Choi holds a BS in Physiological Sciences from the University of California, Los Angeles (UCLA).

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