TCW funds, an investment management company, released its “TCW Relative Value Mid Cap Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equities finished the year on a positive note, with the S&P 500 Total Return (USD) increasing by 2.65% and achieving a remarkable 17.9% in 2025. The AI sector continued to thrive following Trump’s tariff announcements. While there are concerning indicators that echo the Dot-Com bubble, the underlying companies appear to be defying odds with technological advancements, strong financials, and reasonable valuations. Looking ahead, the firm anticipates the equity market will remain highly sensitive to policy changes and earnings reports, with valuations staying near historically high levels. Class I shares of the fund returned 4.54% in Q4, outperforming the Russell Midcap® Value Index benchmark, which returned 1.42%. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, TCW Relative Value Mid Cap Fund highlighted Teva Pharmaceutical Industries Limited (NYSE:TEVA) as one of its leading contributors. Teva Pharmaceutical Industries Limited (NYSE:TEVA) is an Israel-based pharmaceutical company. On April 6, 2026, Teva Pharmaceutical Industries Limited (NYSE:TEVA) closed at $29.82 per share. One-month return of Teva Pharmaceutical Industries Limited (NYSE:TEVA) was -5.39%, and its shares gained 119.43% over the past 52 weeks. Teva Pharmaceutical Industries Limited (NYSE:TEVA) has a market capitalization of $35.58 billion.
TCW Relative Value Mid Cap Fund stated the following regarding Teva Pharmaceutical Industries Limited (NYSE:TEVA) in its fourth quarter 2025 investor letter:
Portfolio stock selection was slightly positive (+373 bps) in the quarter. The best performing stocks in the quarter were Dollar Tree (DLTR; 4.08%**), Teva Pharmaceutical Industries Limited (NYSE:TEVA) (TEVA; 2.17%**), and C.H. Robinson (CHRW; 3.41%**). Teva saw strong growth in the quarter as continued its strategic pivot toward branded pharmaceuticals, emphasizing CNS and immunology as core therapeutic pillars. Additionally, deleveraging efforts are expected to lower financing expenses by 2027, supporting long-term profitability.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 60 hedge fund portfolios held Teva Pharmaceutical Industries Limited (NYSE:TEVA) at the end of the fourth quarter, the same as in the previous quarter. While we acknowledge the risk and potential of Teva Pharmaceutical Industries Limited (NYSE:TEVA) 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 Teva Pharmaceutical Industries Limited (NYSE:TEVA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Teva Pharmaceutical Industries Limited (NYSE:TEVA) and shared the list of cheapest strong buy stocks to buy. In addition, please check out our hedge fund investor letters Q4 2025 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.
