TCW Funds, an investment management firm, published its first-quarter 2026 investor letter for the ‘TCW Concentrated Large Cap Growth Fund.’ A copy of the letter is available to download here. The first quarter was marked by volatility in equity markets, driven by geopolitical tensions, concerns about the private credit sector, a government shutdown, and ongoing AI concerns. During this period, The Fund (I Share) reported a net loss of 11.75%, lagging behind the Russell 1000 Growth Index return of -9.78%. The Fund considers the market’s broadening as a healthy sign and remains confident that the market will eventually recognize the portfolio’s intrinsic value. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, TCW Concentrated Large Cap Growth Fund highlighted Eaton Corporation plc (NYSE:ETN) as a leading performance contributor. Eaton Corporation plc (NYSE:ETN) is a power management company that offers energy-efficient power management solutions for data centers and other industries. On May 19, 2026, Eaton Corporation plc (NYSE:ETN) closed at $371.88 per share. One-month return of Eaton Corporation plc (NYSE:ETN) was -10.15%, and its shares gained 15.37% over the past 52 weeks. Eaton Corporation plc (NYSE:ETN) has a market capitalization of $144.40 billion.
TCW Concentrated Large Cap Growth Fund stated the following regarding Eaton Corporation plc (NYSE:ETN) in its Q1 2026 investor letter:
“Shares of Eaton Corporation plc (NYSE:ETN) ; 2.59%**) moved higher after reporting quarterly results that were largely in-line with consensus estimates. Management’s sequential guidance of +5% to +7% organic top-line growth missed consensus (+7.6%). Demand remains strong (orders +50% YoY and datacenter orders +200% YoY). Increased costs are weighing on near-term margins, however, as the company ramps to meet accelerating demand. The backlog of projects is impressive: $3 trillion of megaprojects announced since 2021 ($937 billion announced in 2025) and 54% of the new projects are datacenters. The company’s Boyd acquisition (expected to close in the second quarter) bolsters ETN’s datacenter cooling capabilities and expands ETN’s accessible market from $2.9 million/megawatt to $3.4 million/megawatt. We remain positive on shares.”
Eaton Corporation plc (NYSE:ETN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 87 hedge fund portfolios held Eaton Corporation plc (NYSE:ETN) at the end of the fourth quarter, up from 72 in the previous quarter. Eaton Corporation plc (NYSE:ETN) reported record revenue of $7.5 billion in Q1 2026 and a record $1.7 billion of segment operating profit. While we acknowledge the potential of Eaton Corporation plc (NYSE:ETN) 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.
