TCW Funds, an investment management firm, published its second-quarter 2026 investor letter for the ‘TCW Concentrated Large Cap Growth Fund.’ A copy of the letter can be downloaded here. During the second quarter, AI monetization, a fragile Middle East ceasefire, and a Federal Reserve leadership transition were the significant events. All major indices ended higher, driven by resilient economic growth and strong corporate earnings. April marked a recovery from March lows, with the S&P 500 achieving record highs by early June, largely due to robust corporate earnings linked to AI capital spending. Although the fund appreciated 14.45% in the quarter, it trailed the Russell 1000® Growth Index’s 16.74% and the S&P 500’s 15.20% returns. Holdings in healthcare and financials hurt relative results most, while information technology and consumer discretionary holdings positively impacted relative performance during the quarter. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.
In its Q2 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 develops, manufactures and markets medical devices for use in various interventional medical specialties. On August 12, 2026, Boston Scientific Corporation (NYSE:BSX) closed at $51.42 per share. The one-month return of Boston Scientific Corporation (NYSE:BSX) was 15.24%, and its shares lost 50.63% over the past 52 weeks. Boston Scientific Corporation (NYSE:BSX) has a market capitalization of $74.52 billion.
TCW Concentrated Large Cap Growth Fund stated the following regarding Boston Scientific Corporation (NYSE:BSX) in its Q2 2026 investor letter:
“Our weakest relative performance during the quarter came from the healthcare sector. Shares of Boston Scientific Corporation (NYSE:BSX) moved lower after quarterly results and the CHAMPION AF data results. While results modestly beat expectations, two key franchises (U.S. Electrophysiology and Watchman) missed consensus and management lowered 2026 organic sales growth guidance to 10 11%. The durability and growth trajectory for WATCHMAN is a focus for investors, and although CHAMPION-AF data released at the end of March 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. Shares remain under review.”
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, 106 hedge fund portfolios held Boston Scientific Corporation (NYSE:BSX) at the end of the first quarter, compared to 110 in the previous quarter. 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 a list of strong buy stocks with high upside according to analysts. In addition, please check out our hedge fund investor letters Q2 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.
