TCW Relative Value Mid Cap Fund Sold Academy Sports and Outdoors (ASO) Due to Thesis Misalignment

Core Insights - TCW Relative Value Mid Cap Fund reported a strong recovery in the second quarter of 2025, with a return of 7.37%, outperforming the Russell Midcap® Value Index which returned 5.35% [1] - The fund highlighted Academy Sports and Outdoors, Inc. (NASDAQ:ASO) as a key stock, noting its recent performance and market capitalization [2][4] Company Overview - Academy Sports and Outdoors, Inc. is a sporting goods and outdoor recreation retailer founded in 1938, operating 298 retail stores primarily in the southern United States [3] - The company has a strategic supplier relationship with Nike, which accounts for approximately 11% of its revenue [3] Financial Performance - In Q2 2025, Academy Sports and Outdoors, Inc. reported net sales of approximately $1.6 billion, reflecting a 3.3% increase, with a comparable store sales increase of 0.2% [4] - As of October 2, 2025, the stock closed at $52.97 per share, with a market capitalization of $3.529 billion [2] Investment Considerations - Despite the potential of Academy Sports and Outdoors, the company faces challenges due to increased costs from tariffs and limited access to desirable products, which may delay recovery [3] - The position in Academy Sports and Outdoors was eliminated by the fund due to these risks, indicating a cautious outlook on the stock [3]