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 Seagate Technology Holdings plc (NASDAQ:STX). Seagate Technology Holdings plc (NASDAQ:STX) is a data storage company that provides data storage technology and infrastructure solutions, including hard disk drives (HDDs), solid state drives (SSDs), and other storage solutions. On April 6, 2026, Seagate Technology Holdings plc (NASDAQ:STX) closed at $453.30 per share. One-month return of Seagate Technology Holdings plc (NASDAQ:STX) was 17.96%, and its shares gained 581.24% over the past 52 weeks. Seagate Technology Holdings plc (NASDAQ:STX) has a market capitalization of $98.85 billion.
TCW Relative Value Mid Cap Fund stated the following regarding Seagate Technology Holdings plc (NASDAQ:STX) in its fourth quarter 2025 investor letter:
“Seagate Technology Holdings plc (NASDAQ:STX), incorporated in Dublin, Ireland and with operational headquarters in Fremont, CA, is engaged in the development, production, and distribution of data storage products and electronic data storage solutions. Its products include hard disk drives, solid state hybrid drives, solid state drives, peripheral component interconnect express cards, and serial advanced technology attachment controllers, storage subsystems, and computing solutions. STX is experiencing robust demand driven by hyperscalers aggressive adoption of AI.”
Seagate Technology Holdings plc (NASDAQ:STX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 74 hedge fund portfolios held Seagate Technology Holdings plc (NASDAQ:STX) at the end of the fourth quarter, up from 72 in the previous quarter. While we acknowledge the risk and potential of Seagate Technology Holdings plc (NASDAQ:STX) 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 Seagate Technology Holdings plc (NASDAQ:STX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Seagate Technology Holdings plc (NASDAQ:STX) and shared the list of unstoppable technology 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.
