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 of 2025, TCW Relative Value Mid Cap Fund mentioned Centene Corporation (NYSE:CNC) as a new addition to its holdings. Centene Corporation (NYSE:CNC) is a US-based healthcare enterprise that offers services to under-insured and uninsured families and commercial organizations. On April 6, 2026, Centene Corporation (NYSE:CNC) closed at $35.40 per share. One-month return of Centene Corporation (NYSE:CNC) was 0.43%, and its shares lost 43.27% over the past 52 weeks. Centene Corporation (NYSE:CNC) has a market capitalization of $17.41 billion.
TCW Relative Value Mid Cap Fund stated the following regarding Centene Corporation (NYSE:CNC) in its fourth quarter 2025 investor letter:
“Centene Corporation (NYSE:CNC) is a leading healthcare service provider. The company is the largest Medicaid Managed Care Organization in the country and operates through the Managed Care and Specialty Services segment. At initiation, the company had a $9 billion market capitalization and met three of the five valuation factors: price-to sales, price-to-earnings, and price-to-book. The catalysts were new markets/new products and restructuring. Currently, Centene is the largest nationwide Medicaid provider with a special focus on servicing the lower income segments of the population (below 400% federal poverty level) by providing health plan coverage to individuals through various government subsidized programs, including Medicaid and Medicare. The Specialty Services segment offers healthcare services and products to state programs, correctional facilities, healthcare organizations, and employer groups.”
Centene Corporation (NYSE:CNC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 78 hedge fund portfolios held Centene Corporation (NYSE:CNC) at the end of the fourth quarter, up from 72 in the previous quarter. While we acknowledge the risk and potential of Centene Corporation (NYSE:CNC) 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 Centene Corporation (NYSE:CNC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Centene Corporation (NYSE:CNC) and shared Artisan Mid Cap Value Fund’s views on the company. 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.
