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 Gartner, Inc. (NYSE:IT). Established in 1979, Gartner, Inc. (NYSE:IT) is a research and advisory company that operates through research, conferences, and consulting segments. The one-month return of Gartner, Inc. (NYSE:IT) was 8.62%, and its shares lost 48.73% of their value over the last 52 weeks. On December 24, 2025, Gartner, Inc. (NYSE:IT) stock closed at $251.18 per share, with a market capitalization of $19.023 billion.
TCW Concentrated Large Cap Growth Fund stated the following regarding Gartner, Inc. (NYSE:IT) in its third quarter 2025 investor letter:
“Shares of Gartner, Inc. (NYSE:IT) (IT)† dropped after the company reported disappointing quarterly results. While top and bottom-line results topped consensus estimates, growth excluding the U.S. Federal business decelerated and management lowered forward guidance. Forward guidance now assumes CV (Contract Value) growth will decelerate from mid-single-digit growth to low single-digit growth. Furthermore, management noted that ~35% to 40% of research contract value is in tariff impacted industries that are implementing cost cutting with delayed sales cycles. AI (a secular trend to which we are firmly levered) is rapidly disrupting many end markets. While Gartner’s research is valued and appreciated by senior C-suite executives to validate decisions, customers are increasingly becoming confident in LLM (Large Language Model) research, thus harming Gartner’s BMA (Business Model Advantage), and we believe AI may shrink the company’s TAM (Total Addressable Margin). We therefore elected to completely exit the stock.”
Gartner, Inc. (NYSE:IT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held Gartner, Inc. (NYSE:IT) at the end of the third quarter, which was 45 in the previous quarter. In the third quarter of 2025, Gartner, Inc. (NYSE:IT) reported revenue of $1.5 billion, reflecting as increase of 3% year-over-year as reported and 1% FX neutral. While we acknowledge the potential of Gartner, Inc. (NYSE:IT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
