TCW Funds, an investment management firm, published its second-quarter 2026 investor letter for the “TCW Relative Value Mid Cap Fund”. The letter can be downloaded here. Equities advanced in Q2 2026, with the S&P 500 reaching record highs despite volatility from a Federal Reserve leadership transition and Middle East tensions. Markets rebounded from Q1 lows, supported by AI-related data center spending and robust earnings. TGVOX returned 14.10% versus the Index’s 13.40% in the quarter. S&P 500 earnings growth estimates rose from 18.8% to 23.1%, while the economy remained resilient. Portfolio stock selection contributed positively. Looking ahead, elevated valuations and thin margins for error make markets sensitive to policy and earnings. AI, digital infrastructure, and energy transition themes remain supportive, while labor and consumer concerns may be offset by OBBB-related stimulus. The firm favors resilient, cash-generative businesses. You can also review the fund’s top 5 holdings to see its best picks for 2026.
In its second-quarter 2026 investor letter, TCW Relative Value Mid Cap Fund highlighted Jabil Inc. (NYSE:JBL). Jabil Inc. (NYSE:JBL) is an engineering, manufacturing, and supply chain solutions provider. On September 30, 2026, Jabil Inc. (NYSE:JBL) closed at $286.86, with a $30.06 billion market capitalization. Jabil Inc. (NYSE:JBL) posted a ~25.80% YTD gain, trading within a 52-week range of $189.60 to $428.93.
TCW Relative Value Mid Cap Fund stated the following regarding Jabil Inc. (NYSE:JBL) in its Q2 2026 investor letter:
“Portfolio stock selection was positive in the quarter (+174 bps). The best performing stocks during the period included Centene Corporation (CNC; 2.33%**), ON† Semiconductor, and Jabil Inc. (NYSE:JBL) (JBL; 4.14%**). Jabil ended the quarter up +45.2% in response to the robust demand for AI data centers. Jabil sells infrastructure equipment that is used in these data centers. The improving trends in the automotive and industrial end markets continues to be a tailwind.”
Jabil Inc. (NYSE:JBL) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 69 hedge fund portfolios held Jabil Inc. (NYSE:JBL) at the end of the second quarter, compared to 67 in the previous quarter. While we acknowledge the potential of Jabil Inc. (NYSE:JBL) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
Source: finance.yahoo.com
