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 Boston Scientific Corporation (NYSE:BSX). Boston Scientific Corporation (NYSE:BSX) is a medical technology company that manufactures and markets medical devices for use in various interventional medical specialties. On May 19, 2026, Boston Scientific Corporation (NYSE:BSX) closed at $56.81 per share. One-month return of Boston Scientific Corporation (NYSE:BSX) was -12.42%, and its shares lost 45.71% over the past 52 weeks. Boston Scientific Corporation (NYSE:BSX) has a market capitalization of $84.44 billion.
TCW Concentrated Large Cap Growth Fund stated the following regarding Boston Scientific Corporation (NYSE:BSX) in its Q1 2026 investor letter:
“Shares of Boston Scientific Corporation (NYSE:BSX); 2.05%**) moved lower during March after the company reported disappointing quarterly results in early February, and the company presented data from the highly anticipated CHAMPION-AF trial at the end of March. Though BSX modestly beat top and bottom-line consensus estimates, the company’s two key growth franchises (U.S. Electrophysiology and Watchman) missed expectations. Management lowered 2026 organic sales growth guidance to a range of +10-11%. BSX continues to garner the majority of sales in electrophysiology, but overall market growth is decelerating, and competition may be taking some market share. While Watchman growth was strong (+29% organically in the quarter), results missed consensus estimates. The durability and growth trajectory for Watchman is a focus for investors, and although CHAMPION-AF data released at the end of the month hit all endpoints, they failed to act as a positive catalyst for BSX shares. Though we recognize the timing and magnitude of WATCHMAN contribution may not be resolved in the near-term, we believe current valuation may have overly discounted the company’s long term earnings growth profile. As we closely monitor the situation, we remain constructive on shares.”
Boston Scientific Corporation (NYSE:BSX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 110 hedge fund portfolios held Boston Scientific Corporation (NYSE:BSX) at the end of the fourth quarter, up from 102 in the previous quarter. In the first quarter of 2026, Boston Scientific Corporation (NYSE:BSX) delivered consolidated revenue of $5.203 billion, representing 11.6% year-over-year growth compared to Q1 2025. While we acknowledge the risk and potential of Boston Scientific Corporation (NYSE:BSX) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Boston Scientific Corporation (NYSE:BSX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Boston Scientific Corporation (NYSE:BSX) and shared the list of best long term US stocks to buy. Boston Scientific Corporation (NYSE:BSX) detracted from the performance of Aristotle Core Equity Fund in Q1 2026 due to concerns about growth durability. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
