Core Insights - TCW Concentrated Large Cap Growth Fund reported a return of +4.11% in Q3 2025, underperforming the Russell 1000 Growth Index which returned +10.51% [1] - The fund highlighted Eaton Corporation plc (NYSE:ETN) as a key holding, noting its significant market capitalization of $126.005 billion and a share price of $323.67 as of December 24, 2025 [2] Company Overview - Eaton Corporation plc is described as an intelligent power management company serving various markets including data centers, utilities, and aerospace [3] - The company has transitioned from a cyclical industrial conglomerate to a higher growth, higher margin entity focused on electrical and aerospace sectors, benefiting from trends like electronification and AI datacenter buildouts [3] Financial Performance - Eaton Corporation plc reported quarterly earnings of $7 billion for Q3 2025, with a margin increase of 70 basis points to reach 25% [4] - The stock experienced a one-month return of -5.27% but gained 5.23% over the last 52 weeks [2] Market Position - As of the end of Q3 2025, Eaton Corporation plc was held by 72 hedge fund portfolios, a slight decrease from 74 in the previous quarter [4] - The company has a substantial backlog of multi-year megaprojects, providing visibility into future cash flows [3]

We came across a bullish thesis on Tradeweb Markets Inc. on The Diversified Fins Analyst’s Substack by Collin Cook. In this article, we will summarize the bulls’ thesis on TW. Tradeweb Markets Inc.'s share was trading at $106.26 as of December 2nd. TW’s trailing and forward P/E were 37.15 and 31.06 respectively according to Yahoo Finance. Super Micro (SMCI) Tumbles 11% as Q1 Earnings Disappoint Tradeweb Markets Inc., together with its subsidiaries, builds and operates electronic marketplaces worldwide. T ...

TE Connectivity 2025 Investor Day Summary Company Overview - **Company**: TE Connectivity (NYSE: TEL) - **Event**: 2025 Investor Day held on November 20, 2025, in Philadelphia Key Industry Insights - **Industry Focus**: Connectivity solutions across various sectors including artificial intelligence, power grids, autonomous factories, and next-generation vehicles [4][10][14] - **Market Size**: The addressable market for TE Connectivity is approximately $130 billion, with significant fragmentation providing both organic and inorganic growth opportunities [14][28] Core Financial Highlights - **Revenue**: Over $17 billion in the previous year with a 21% operating income and 25% EBITDA [13][28] - **Free Cash Flow**: Increased from $1.6 billion to $3.2 billion, indicating strong operational improvements [29] - **Growth Projections**: Expected growth rate of 6%-8% over the next five years, a significant increase from previous performance [10][28] Strategic Initiatives - **Co-Creation Model**: Emphasis on engineering close to customers to foster innovation and address complex architectures [17][18] - **Engineering Capacity**: Increased engineering staff by 25% over the past five years, now totaling 10,700 engineers working on 5,000 projects [18][19] - **Localization**: 76% of operations are localized in regions where customers are based, with 90% of the supply chain also localized [21][22] Growth Drivers - **Industrial Solutions**: Expected to be the largest growth driver, with a focus on automation and connected living [11][44] - **Transportation Segment**: Anticipated 4%-6% content outperformance in the automotive sector [11][12] - **Digital Data Networks and Energy**: Significant growth expected due to massive capital expenditures in these areas [56][57] Market Trends - **Data and Power Needs**: Increasing demand for high-speed data transfer and power solutions driven by AI and electrification trends [35][39] - **AI Surge**: Over $400 billion expected to be invested in AI this year, with TE Connectivity positioned to benefit from this growth [62][63] Operational Excellence - **Quality Improvement**: Achieved a 50% improvement in quality over the last five years, with plans for another 50% improvement in the next five years [26] - **Customization and Scale**: TE Connectivity operates over 3,000 molding presses and 1,200 stamping presses, emphasizing the ability to customize products while maintaining scale [24][25] Conclusion - **Future Outlook**: TE Connectivity is confident in its growth trajectory, driven by strong customer relationships, innovative engineering, and a commitment to operational excellence [48][49] - **Commitment to Shareholders**: Continued focus on increasing dividends and maintaining a strong return on invested capital (ROIC) [32][33]

Financial Data and Key Metrics Changes - The company reported revenues of $509 million for the third quarter, up 13% year-over-year on a reported basis and 11% on a constant currency basis [28] - Year-to-date revenues are up 21% or 17% organically, indicating strong growth momentum [5] - Adjusted EBITDA margin increased by 90 basis points to 54.2% compared to the previous year [29] Business Line Data and Key Metrics Changes - Rates produced its second highest revenue quarter, driven by organic growth across swaps and global government bonds, while mortgages achieved record revenues [9] - Credit growth was led by strength in municipal bonds and European credit, with U.S. credit revenues declining nearly 30% year-over-year [21][22] - Money markets revenue growth was supported by the addition of ICD, which saw a 7% increase relative to the second quarter [9] Market Data and Key Metrics Changes - International revenues grew by 25% year-over-year, reflecting successful strategic initiatives in emerging markets and APAC [8] - The company achieved a 10% increase in electronic industry average daily volume year-over-year, while voice average daily volume increased by 26% [11] Company Strategy and Development Direction - The company is focused on delivering innovative solutions that enhance liquidity and efficiency across the global fixed income ecosystem [7] - There is a strong emphasis on expanding electronic trading capabilities to capture market share from traditional voice trading [39] - The company is also investing in emerging markets and digital asset initiatives, with revenues from emerging markets nearly tripling year-over-year [26] Management's Comments on Operating Environment and Future Outlook - Management noted that the current macro environment is characterized by low interest rate volatility and geopolitical uncertainty, which are impacting client activity [5][39] - The company anticipates that volatility will normalize and data will return, which will drive future trading activity [39] - Management expressed confidence in the long-term growth potential for swaps, with only 30% of the cleared swaps market currently electronified [19] Other Important Information - The company reached an agreement to renew its market data contract with LSEG for three years, which is expected to increase in value by 9% annually [36] - The company ended the quarter with $1.9 billion in cash and cash equivalents, and free cash flow reached approximately $987 million for the trailing twelve months [34] Q&A Session Summary Question: What potential catalysts could spark volatility and improve activity? - Management indicated that the lack of data due to the government shutdown has led to muted activity, but potential catalysts include midterm elections and geopolitical uncertainties [44][50] Question: What is driving the greater mix of voice trades in Treasuries? - Management explained that complex trades, often involving larger notional amounts, are still predominantly voice-driven, but they expect electronic trading share to recover [55][60] Question: How does the company view the outlook for rates? - Management believes the current environment is constructive, with lower rates positively impacting trading volumes and fee structures [72][76] Question: What opportunities exist in tokenized assets? - Management highlighted the potential for tokenization to modernize trading processes, improve efficiency, and generate revenue, positioning the company as a market leader in this space [84][86]

Financial Data and Key Metrics Changes - The company reported revenues of $509 million for the third quarter, up 13% year-over-year on a reported basis and 11% on a constant currency basis [28] - Year-to-date revenues are up 21% or 17% organically, indicating strong growth momentum [5] - Adjusted EBITDA margin for the year to date is 54.2%, an increase of 90 basis points compared to the previous year [29] Business Line Data and Key Metrics Changes - Rates produced the second highest revenue quarter, driven by organic growth across swaps and global government bonds, while mortgages achieved record revenues [9] - Credit growth was led by strength in municipal bonds and European credit, with U.S. credit revenues declining due to lower retail corporate credit revenues [21][22] - Other revenues grew over 50%, reflecting contributions from emerging digital asset initiatives [10] Market Data and Key Metrics Changes - International revenues grew by 25% year-over-year, highlighting the success of strategic initiatives in emerging markets and Asia-Pacific [8] - U.S. Treasury revenues decreased slightly by 2% year-over-year, impacted by lower wholesale trends [11] - The company achieved record revenues in global swaps, driven by strong client engagement and a favorable macro backdrop, with global swaps revenues growing over 30% year-over-year [18] Company Strategy and Development Direction - The company is focused on expanding its electronic trading solutions to capture market share from traditional voice trading [39] - There is a strong emphasis on innovation, particularly in the areas of tokenization and digital assets, to modernize financial asset trading [84][85] - The company aims to enhance liquidity and efficiency across the global fixed income ecosystem, adapting to changing market conditions [7] Management's Comments on Operating Environment and Future Outlook - Management noted that the current macro environment is characterized by low interest rate volatility and geopolitical uncertainty, which are impacting client activity [5][39] - The company anticipates that volatility will normalize and data will return, which will drive client activity and repositioning of risk [39] - Despite challenges, the company remains optimistic about its growth trajectory, particularly in international markets, which are expected to continue strong performance [40] Other Important Information - The company reached an agreement to renew its market data contract with LSEG for three years, with an annual increase of 9% [36] - The company ended the quarter with $1.9 billion in cash and cash equivalents, and free cash flow reached approximately $987 million for the trailing twelve months [34] Q&A Session Summary Question: What potential catalysts could spark volatility and improve activity? - Management indicated that the lack of data due to the government shutdown has contributed to muted activity, but potential catalysts include midterm elections and geopolitical uncertainties [46][50] Question: What is driving the greater mix of voice trades in Treasuries? - Management explained that complex trades, often involving larger notional amounts, are still predominantly voice-driven, but they expect electronic trading share to recover [55][60] Question: How does the outlook for rates impact trading volumes? - Management believes that lower rates can positively impact fee structures and trading volumes, particularly in swaps and cash credit [72][77] Question: What opportunities exist in tokenized assets? - Management highlighted the potential for tokenization to modernize trading, improve efficiency, and provide significant client benefits, positioning the company as a market leader in this space [84][85]