TCW Focused Equities Strategy

Managed Account 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

 

Style

Investment Team

  • Tom McKissick
  • John Snider

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. The portfolio is measured against the Russell 1000 Value Index or the S&P 500 Index.

There is, of course, no assurance that this goal will be realized.

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.

Top Ten Holdings (%)

  Portfolio
Wells Fargo & Co. 4.81
Adobe Systems Incorporated 4.39
EOG Resources Inc. 4.14
Union Pacific Corp. 3.98
Celgene Corp. 3.71
M&T Bank Corp. 3.30
Alphabet, Inc. 3.29
Las Vegas Sands Corp. 3.23
Air Products & Chemicals Inc. 3.21
Danaher Corp. 3.20
as of 9/30/2017 (updated quarterless)
Include cash

Sector Weight (%)

as of 9/30/2017 (updated quarterless)

Legal Disclosures


The source for all charts and tables above is TCW
Note:
The TCW Concentrated Value strategy was formerly referred to as TCW Focused Equities
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.
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.


*Source: BNY Mellon Performance and Risk Analytics, based on a managed account Concentrated Value model portfolio. 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.


**Source: BNY Mellon Performance and Risk Analytics, based on a managed account Concentrated Value model portfolio. Portfolio characteristics and holdings are subject to change at any time. The investment strategy does not target any specific numbers or ranges for these characteristics. Accordingly, these characteristics can vary greatly. The estimates are forward-looking statements based on assumptions. This would include forward earnings estimates and growth rates, among other things, and all associated calculations, including projected price/earnings ratios. Actual results may vary materially from the estimates due to the numerous economic, financial and market conditions. There is no assurance that forecast estimates will be realized.

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.

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.

News & Commentary

Documents

Internal Only Materials

Materials Archive