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]

Core Thesis - Tradeweb Markets Inc. is viewed positively due to its disciplined cost management and strong revenue growth, positioning the company for long-term expansion despite market challenges [1][5]. Financial Performance - Tradeweb reported Q3 2025 revenue of $509 million, reflecting a 13% year-over-year increase but a 1% decrease sequentially, influenced by lower transaction fees and commissions [2]. - Operating expenses remained stable at $253 million, leading to operating margins of 50.2%, while non-operating income increased by 36% sequentially [3]. - Adjusted diluted EPS was $0.87, unchanged from the previous quarter but up 15% year-over-year, exceeding consensus estimates by 4% [3]. Guidance and Future Outlook - Management has reduced the upper limit of full-year adjusted operating expense guidance to $1.025 billion from $1.05 billion, indicating effective expense control [4]. - October revenue trends are strong, with a 9% year-over-year increase, driven by a 20% growth in international markets and double-digit volume expansion across various asset classes [4]. - Tradeweb is focused on capital discipline, prioritizing organic growth, selective M&A, and opportunistic share repurchases, as management believes the stock is undervalued [5]. Market Position - Tradeweb is experiencing robust international revenue growth and is well-positioned for sustained long-term expansion, even amid muted market volatility [5].

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]