TCW funds, an investment management company, released its “TCW Concentrated Large Cap Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their rally in the third quarter, driven by continued optimism around AI investments and positive corporate earnings. Against this backdrop, the fund (I share) returned +4.11% in the quarter compared to +10.51% for the Russell 1000 Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, TCW Concentrated Large Cap Growth Fund highlighted stocks such as Arista Networks, Inc. (NYSE:ANET). Arista Networks, Inc. (NYSE:ANET) is a technology company that engages in the development and distribution of data-driven, client-to-cloud networking solutions. The one-month return of Arista Networks Inc (NYSE:ANET) was 2.44%, and its shares gained 14.06% of their value over the last 52 weeks. On December 24, 2025, Arista Networks, Inc. (NYSE:ANET) stock closed at $130.77 per share, with a market capitalization of $164.677 billion.
TCW Concentrated Large Cap Growth Fund stated the following regarding Arista Networks, Inc. (NYSE:ANET) in its third quarter 2025 investor letter:
“Arista Networks, Inc. (NYSE:ANET) (ANET; Information Technology; 1.32%**) Arista Networks is a leading high performance, Ethernet-focused, cloud networking provider. The company’s platform uses software to address the needs of large-scale cloud companies, cloud service providers, and large enterprises. EOS (Extensible Operating System) is the company’s scalable, unified software stack that provides a coherent feature set that addresses all segments of the networking market. We believe the company’s product advantages (i.e. speed, single platform consistency, open standards and interoperability, scalability, simplified manageability and high reliability) position the company well to take market share in a rapidly expanding end market buoyed by AI-related demand.”
Arista Networks, Inc. (NYSE:ANET) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 92 hedge fund portfolios held Arista Networks, Inc. (NYSE:ANET) at the end of the third quarter, which was 81 in the previous quarter. In the third quarter of 2025, Arista Networks Inc (NYSE:ANET) reported revenue of $2.3 billion, up 27.5% year-over-year, exceeding expectations. While we acknowledge the potential of Arista Networks, Inc. (NYSE:ANET) 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.
