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 stocks like Flex Ltd. (NASDAQ:FLEX). Flex Ltd. (NASDAQ:FLEX) is a leading provider of technology innovation, supply chain, and manufacturing solutions to data center, communications, enterprise, and power industries. On April 6, 2026, Flex Ltd. (NASDAQ:FLEX) stock closed at $67.70 per share. One-month return of Flex Ltd. (NASDAQ:FLEX) was 11.15%, and its shares are up 141.44% over the past twelve months. Flex Ltd. (NASDAQ:FLEX)has a market capitalization of $25.035 billion.
TCW Relative Value Mid Cap Fund stated the following regarding Flex Ltd. (NASDAQ:FLEX) in its fourth quarter 2025 investor letter:
“Flex Ltd. (NASDAQ:FLEX), based in Singapore (for tax purposes but domiciled in the U.S. with functional headquarters in Silicon Valley), is a leading provider of electronics manufacturing services (EMS) and outsourced design and engineering. The company operates in two segments: Flex Agility Solutions (Communication, Enterprise, Cloud, Lifestyle and Consumer Devices) and Flex Reliability Solutions (Automotive, Industrial and Health Solutions). FLEX is benefiting from the build out of AI data infrastructure. Flex maintains a leading-edge global network of manufacturing sites that offers customers the ability to relocate final assembly from high-tariff geographies in a timely and cost-efficient manner enabling customers to reduce or avoid tariffs. Despite the success of the FLEX data center business, end market uncertainty around its automotive and industrial end markets led us to eliminate the position.”
Flex Ltd. (NASDAQ:FLEX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 62 hedge fund portfolios held Flex Ltd. (NASDAQ:FLEX) at the end of the fourth quarter, up from 60 in the previous quarter. While we acknowledge the risk and potential of Flex Ltd. (NASDAQ:FLEX) 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 Flex Ltd. (NASDAQ:FLEX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Flex Ltd. (NASDAQ:FLEX) and shared Artisan Small Cap 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.
