TCW Funds, an investment management firm, published its first-quarter 2026 investor letter for the ‘TCW Concentrated Large Cap Growth Fund.’ A copy of the letter is available to download here. The first quarter was marked by volatility in equity markets, driven by geopolitical tensions, concerns about the private credit sector, a government shutdown, and ongoing AI concerns. During this period, The Fund (I Share) reported a net loss of 11.75%, lagging behind the Russell 1000 Growth Index return of -9.78%. The Fund considers the market’s broadening as a healthy sign and remains confident that the market will eventually recognize the portfolio’s intrinsic value. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, TCW Concentrated Large Cap Growth Fund highlighted McKesson Corporation (NYSE:MCK) as a newly added position. McKesson Corporation (NYSE:MCK) is a leading healthcare services company headquartered in Irving, Texas. On May 19, 2026, McKesson Corporation (NYSE:MCK) closed at $761.89 per share. One-month return of McKesson Corporation (NYSE:MCK) was -8.12%, and its shares gained 6.01% over the past 52 weeks. McKesson Corporation (NYSE:MCK) has a market capitalization of $91.58 billion.
TCW Concentrated Large Cap Growth Fund stated the following regarding McKesson Corporation (NYSE:MCK) in its Q1 2026 investor letter:
“McKesson Corporation (NYSE:MCK) (MCK; Healthcare; 1.19%**) – McKesson provides drug distribution and IT services to healthcare providers and pharmaceutical manufacturers in North America (U.S. and Canada). The company distributes branded and generic pharmaceuticals, medical-surgical supplies, and related services to healthcare providers, independent and retail chain pharmacies, and mail order facilities. The company’s Prescription Technology Solutions (PTS) segment provides third party logistics, affordability, and access solutions to biopharma, retail pharmacy, and healthcare providers. We believe the company has successfully revamped its portfolio over the past decade to higher margin and faster growth businesses, which we believe will lead to a more sustainable and higher growth algorithm than peers. We are attracted to the company’s competitive position in an oligopolistic market, network effects in its PTS segment, and management’s history of strong capital allocation. We believe the current share price does not adequately reflect the longer-term cash flow generation potential of the business.”
McKesson Corporation (NYSE:MCK) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 72 hedge fund portfolios held McKesson Corporation (NYSE:MCK) at the end of the fourth quarter, compared to 73 in the previous quarter. In the fourth quarter of fiscal 2026, McKesson Corporation’s (NYSE:MCK) earnings per diluted share reached $11.69, a 16% increase over the prior year. While we acknowledge the risk and potential of McKesson Corporation (NYSE:MCK) 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 McKesson Corporation (NYSE:MCK) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered McKesson Corporation (NYSE:MCK) and shared Eagle Point Capital’s views on the company. In addition, please check out our hedge fund investor letters Q1 2026 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.
