TCW Growth Fund Falls 11.75% in Q1, Adds McKesson and Palantir

Overview

• In May 2026, TCW’s concentrated large‑cap growth fund reported a first‑quarter net loss of 11.75%, trailing the Russell 1000 Growth Index return of -9.78%.
• TCW reaffirmed confidence in ServiceNow after a software selloff, citing 20.5% growth in current remaining performance obligations and early AI sales including 12 Now Assist deals over $1 million in annual value.
• ASML and Eaton were cited as bright spots tied to chipmaking and data‑center build‑outs, with ASML booking €13 billion in orders for Q4 2025 and Eaton reporting orders up 50% year over year and data‑center orders up 200%.
• The team stayed cautious but constructive on Boston Scientific after weaker results and a cut to 2026 organic sales guidance to 10–11%, noting that the CHAMPION‑AF trial readout did not lift the shares.
• Portfolio moves included new stakes in McKesson, based on distribution scale and software network effects, and in Palantir, based on its ontology‑driven AI platform, alongside an exit from Tyler Technologies to trim application software exposure.