TCW funds, an investment management company, released its “TCW Concentrated Large Cap Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their rally in the third quarter, driven by continued optimism around AI investments and positive corporate earnings. Against this backdrop, the fund (I share) returned +4.11% in the quarter compared to +10.51% for the Russell 1000 Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, TCW Concentrated Large Cap Growth Fund highlighted stocks such as Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return for Alphabet Inc. (NASDAQ:GOOG) was -0.52%, and its shares gained 65.09% over the last 52 weeks. On December 29, 2025, Alphabet Inc. (NASDAQ:GOOG) stock closed at $314.39 per share, with a market capitalization of $3.795 trillion.
TCW Concentrated Large Cap Growth Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its third quarter 2025 investor letter:
“Our strongest performance during the quarter came from the communication services and information technology sectors. Shares of Alphabet Inc. (NASDAQ:GOOG) (GOOG; 6.33%**) moved higher after a U.S. District Court Judge delivered a decision regarding in the remedies phase of the trial that Google violated Section 2 of the Sherman Act by maintaining monopolies specifically in general search services and general search text ads. Most importantly, the company will not be forced to sell Chrome or Android. The company is no longer allowed to have exclusive contracts for Search, Chrome, Assistant or Gemini, but the company will be allowed to make payments to distribution partners for default placement (i.e., AAPL†). Additionally, with regards to sharing data, the company will have to make certain search index and user-interaction data available to certain qualified competitors. We believe this outcome will act as a positive clearing event for the company as the verdict was much more benign than the draconian scenarios speculated by some investors. Meanwhile, the company’s fundamentals remain solid: over 2 billion users are using AI overviews each month, Gemini now has 450 million MAUs (Monthly Active Users), and the company is processing more than 980 trillion tokens monthly (more than 2x from four months ago). We remain positive on shares.”
