TCW funds, an investment management company, released its “TCW Relative Value Mid Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter started with a sharp decline driven by the Liberation Day tariffs announcement by President Trump, but a 90-day pause on certain tariffs led to a strong recovery, propelling the S&P 500 and Nasdaq to new highs. U.S. equities continued to rise in May and June, supported by better-than-expected corporate results and positive jobs reports. Against this backdrop, the fund (I share) returned 7.37% in the quarter compared to 5.35% for the Russell Midcap® Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second-quarter 2025 investor letter, TCW Relative Value Mid Cap Fund highlighted stocks such as Electronic Arts Inc. (NASDAQ:EA). Electronic Arts Inc. (NASDAQ:EA) markets, publishes, and delivers games, content, and services for game consoles, PCs, and mobile phones. The one-month return of Electronic Arts Inc. (NASDAQ:EA) was 19.20%, and its shares gained 40.85% of their value over the last 52 weeks. On October 2, 2025, Electronic Arts Inc. (NASDAQ:EA) stock closed at $201.00 per share, with a market capitalization of $50.118 billion.
TCW Relative Value Mid Cap Fund stated the following regarding Electronic Arts Inc. (NASDAQ:EA) in its second quarter 2025 investor letter:
“Electronic Arts (NASDAQ:EA), headquartered in Redwood City, CA is a global leader in digital interactive entertainment engaging in the development, marketing, publication, and distribution of games, content, and online services for Internet-connected game consoles, PCs, mobile phones, and tablets. The company develops and publishes games and services across various genres, such as sports, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Anthem, Need for Speed, and Plants v. Zombies brands, and licensed games, including FIFA, Madden NFL, and Star Wars brands. The firm also provides advertising services and licenses its games to third parties to distribute and host its games. Over the last few years EA has focused on IT markets and sells its games and services through digital distribution channels. At initiation, EA had a market capitalization of $38.5 billion and met one valuation factor, price-to-earnings. The fundamental catalyst is new markets/new products. The company is embarking on aggressive expansion of EA Global Football with FC (Football Club) online and FC mobile as the company positions for the 2026 World Cup. More importantly EA is pushing increased integration of its technology across platforms, more robust community creation tools, and the EA SPORTS App. Additionally, EA is investing heavily in AI to accelerate creativity and personalization.”
Electronic Arts Inc. (NASDAQ:EA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 47 hedge fund portfolios held Electronic Arts Inc. (NASDAQ:EA) at the end of the second quarter, up from 43 in the previous quarter. In the fiscal first quarter of 2026, Electronic Arts Inc. (NASDAQ:EA) delivered net revenue of $1.67 billion, reflecting a 1% increase from the prior year’s quarter. While we acknowledge the risk and potential of Electronic Arts Inc. (NASDAQ:EA) 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 Electronic Arts Inc. (NASDAQ:EA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Electronic Arts Inc. (NASDAQ:EA) and shared a list of Wall Street analysts’ favorite stocks. In addition, please check out our hedge fund investor letters Q2 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.
