TCW funds, an investment management company, released its “TCW Relative Value Large Cap Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equities ended 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 similar to the Dot-Com bubble, the underlying companies appear to be defying odds with technological advancements, strong financials, and reasonable valuations. The Fund (I share) returned 4.29% in the quarter compared to 3.81% for the Russell 1000 Value Index. YTD, the Fund delivered a return of 19.32% compared to 15.91% for the Index. 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 Large Cap Fund highlighted AMETEK, Inc. (NYSE:AME) as its newly acquired position. AMETEK, Inc. (NYSE:AME) is a leading manufacturer of electronic instruments and electromechanical devices. On April 6, 2026, AMETEK, Inc. (NYSE:AME) stock closed at $218.42 per share. One-month return of AMETEK, Inc. (NYSE:AME) was -3.48%, and its shares gained 44.26% of their value over the last twelve months. AMETEK, Inc. (NYSE:AME) has a market capitalization of $50.03 billion.
TCW Relative Value Large Cap Fund stated the following regarding AMETEK, Inc. (NYSE:AME) in its fourth quarter 2025 investor letter:
“AMETEK, Inc. (NYSE:AME) is a $43 billion industrial technology company headquartered in Berwyn, PA. AMETEK provides electronic instruments and electromechanical devices for a diverse set of niche end markets. Revenue split between its Electromechanical Group (EMG) and Electronic Instruments Group (EIG) is approximately 33% and 67%, respectively. The EMG segment develops and manufactures precision motion controls, highly engineered medical components/devices, heat exchangers, and electrical interconnects serving the aerospace/defense, medical, automation, and general industrial verticals. The EIG segment provides test & measurement products for the power, process, industrial, and aerospace market verticals. At initiation in October 2025, shares of AME met one of the f ive valuation factors, price/book value.
The investment catalyst is new products/markets and cost cutting /restructuring. AMETEK’s asset-light business model drives strong and consistent cash flow. Its Growth Model enables AMETEK to expand into niche, adjacent markets aligned with secular growth trends and its Operational Excellence strategy deploys lean manufacturing tools and shared services to improve profitability of acquired companies. Organically, ~26% of sales are derived from products released in the past three years, underpinned by a healthy RD&E/sales ratio of ~5.5 percent. As AMETEK refines its Growth Model flywheel, acquires tuck-in acquisitions opportunistically, improves profitability, and advances in its continuous operational improvement activities across the manufacturing base, the resulting improvement in margins and ROE can improve meaningfully over the medium term.”
AMETEK, Inc. (NYSE:AME) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 64 hedge fund portfolios held AMETEK, Inc. (NYSE:AME) at the end of the fourth quarter, up from 58 in the previous quarter. While we acknowledge the risk and potential of AMETEK, Inc. (NYSE:AME) 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 AMETEK, Inc. (NYSE:AME) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered AMETEK, Inc. (NYSE:AME) and shared the list of best diversified dividend 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.
