TCW sells WAB in Q4

What happened: In Q4 2025, TCW funds sold their holdings in Alphabet Inc (GOOG), Wabtec Corporation (WAB), and Seagate Technology Holdings PL (STX) from their Relative Value Large Cap and Mid Cap Funds. The fund managers cited meeting valuation characteristics as the primary reason for these sales.

Market impact: These sales could signal a shift in TCW's investment strategy, potentially impacting the technology and industrial sectors. Alphabet, Wabtec, and Seagate may face temporary downward pressure on their stock prices due to reduced institutional demand. However, the broader market remained resilient, with the S&P 500 Total Return (USD) increasing by 2.65% in Q4.

What to watch next: Investors should monitor Alphabet's Q1 2026 earnings, due on April 15, for any impact on the company's stock price. Additionally, they should keep an eye on the broader technology sector's performance, as any weakness could be exacerbated by TCW's divestment. Lastly, TCW's future investment decisions will provide insight into their evolving valuation criteria.