3 days ago
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Soumya Eswaran
Tue, April 7, 2026 astatine 9:31 AM CDT 4 min read
TCW funds, an concern absorption company, released its “TCW Relative Value Large Cap Fund” fourth-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. Equities ended the twelvemonth connected a affirmative note, with the S&P 500 Total Return (USD) expanding by 2.65% and achieving a singular 17.9% successful 2025. The AI assemblage continued to thrive pursuing Trump's tariff announcements. While determination are concerning indicators akin to the Dot-Com bubble, the underlying companies look to beryllium defying likelihood with technological advancements, beardown financials, and tenable valuations. The Fund (I share) returned 4.29% successful the 4th compared to 3.81% for the Russell 1000 Value Index. YTD, the Fund delivered a instrumentality of 19.32% compared to 15.91% for the Index. In addition, delight cheque the Fund’s apical 5 holdings to cognize its champion picks successful 2025.
In its fourth-quarter 2025 capitalist letter, TCW Relative Value Large Cap Fund highlighted Amazon.com, Inc. (NASDAQ:AMZN) arsenic its recently acquired position. Amazon.com, Inc. (NASDAQ:AMZN) is simply a multinational exertion and retail institution known for its starring online marketplace and unreality platform. On April 06, 2026, Amazon.com, Inc. (NASDAQ:AMZN) banal closed astatine $212.79 per share. One-month instrumentality of Amazon.com, Inc. (NASDAQ:AMZN) was -0.72%, and its shares gained 24.69% of their worth implicit the past 52 weeks. Amazon.com, Inc. (NASDAQ:AMZN) has a marketplace capitalization of $2.28 trillion.
TCW Relative Value Large Cap Fund stated the pursuing regarding Amazon.com, Inc. (NASDAQ:AMZN) successful its 4th fourth 2025 capitalist letter:
"Amazon.com, Inc. (NASDAQ:AMZN) is simply a $2.3 trillion net institution headquartered successful Seattle, WA. Amazon.com is an online retailer that besides offers personalized buying services, web-based recognition paper payment, and nonstop shipping to customers. AMZN is the largest e-commerce level successful the US with a ~40% marketplace share. Amazon’s concealed condiment is their logistics infrastructure that allows for superior transportation times and little costs than peers, which they usage to delight their loyal Prime rank base. Amazon besides operates a unreality level offering services globally done Amazon Web Services (AWS), a fantastic 2nd concern with maturation opportunities successful unreality migrations and AI workloads. Advertising is progressively important to the wide concern with astir $70 cardinal of annualized revenues, driven by Sponsored Listings arsenic good arsenic Fire TV/Prime Video advertisement inventory (e.g., during Thursday NFL games). At initiation successful October 2025, shares of AMZN met 2 of the 5 valuation factors (price-to-sales; terms to-cash flow).
The concern catalyst is caller products/markets. AWS has been little impacted by the question of AI spending than its hyperscale peers arsenic they person apical dense clients that are peculiarly driving maturation (i.e., OpenAI for MSFT† Azure). However, it is acceptable to adjacent the spread arsenic corporates and start-ups statesman to standard their inference workloads arsenic they present AI-powered products. Additionally, AWS is proviso constrained but is acceptable to get importantly much capableness successful the adjacent 6-12 months, some from 3rd enactment providers similar NVDA arsenic good arsenic their ain custom-designed silicon (Trainium 2). On the retail side, the institution is demonstrating operational excellence with accordant improvements successful its outgo to serve. We expect this to proceed and person a premix payment arsenic advertizing continues to turn arsenic a percent of its North America and International segments. As Amazon enactment execute these strategical initiatives, the institution tin turn currency travel and net materially implicit the mean term."
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