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 Lennar Corporation (NYSE:LEN). Lennar Corporation (NYSE:LEN) is a leading US-based homebuilder primarily operates under the Lennar brand. On April 6, 2026, Lennar Corporation (NYSE:LEN) closed at $88.57 per share. One-month return of Lennar Corporation (NYSE:LEN) was -10.28%, and its shares lost 13.98% over the past 52 weeks. Lennar Corporation (NYSE:LEN) has a market capitalization of $21.87 billion.
ClearBridge Select Strategy stated the following regarding Lennar Corporation (NYSE:LEN) in its fourth quarter 2025 investor letter:
“Advance Auto Parts†, Jacobs Solutions (J; 2.08%**), and Lennar Corporation (NYSE:LEN) (LEN; 0.96%**) were the weakest performers in the quarter. Lennar shares fell late in the quarter after the company offered weaker-than-expected guidance across orders, deliveries, and margins in the company’s fiscal first quarter. Management noted that the housing market remains challenging, despite interest rates continuing to come down.”
Lennar Corporation (NYSE:LEN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 68 hedge fund portfolios held Lennar Corporation (NYSE:LEN) at the end of the fourth quarter, up from 63 in the previous quarter. While we acknowledge the potential of Lennar Corporation (NYSE:LEN) 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.
