Here’s Why TCW Concentrated Large Cap Growth Fund Chose to Exit Tyler Technologies (TYL)

8 hours ago 3

Soumya Eswaran

Wed, May 20, 2026 astatine 8:32 AM CDT 3 min read

TCW Funds, an concern absorption firm, published its first-quarter 2026 capitalist missive for the 'TCW Concentrated Large Cap Growth Fund.' A transcript of the missive is disposable to download here. The archetypal 4th was marked by volatility successful equity markets, driven by geopolitical tensions, concerns astir the backstage recognition sector, a authorities shutdown, and ongoing AI concerns. During this period, The Fund (I Share) reported a nett nonaccomplishment of 11.75%, lagging down the Russell 1000 Growth Index instrumentality of -9.78%. The Fund considers the market's broadening arsenic a steadfast motion and remains assured that the marketplace volition yet admit the portfolio's intrinsic value. Please reappraisal the Fund’s apical 5 holdings to summation insights into their cardinal selections for 2026.

In its first-quarter 2026 capitalist letter, TCW Concentrated Large Cap Growth Fund highlighted stocks similar Tyler Technologies, Inc. (NYSE:TYL). Tyler Technologies, Inc. (NYSE:TYL) is simply a starring integrated bundle and exertion solutions supplier for the nationalist assemblage successful the United States. On May 19, 2026, Tyler Technologies, Inc. (NYSE:TYL) closed astatine $322.74 per share. One-month instrumentality of Tyler Technologies, Inc. (NYSE:TYL) was -6.82%, and its shares mislaid 43.06% implicit the past 52 weeks. Tyler Technologies, Inc. (NYSE:TYL) has a marketplace capitalization of $13.28 billion.

TCW Concentrated Large Cap Growth Fund stated the pursuing regarding Tyler Technologies, Inc. (NYSE:TYL) successful its Q1 2026 capitalist letter:

"Tyler Technologies, Inc. (NYSE:TYL) (TYL; Information Technology) – Tyler Technologies provides mission-critical, vertical bundle solutions for the nationalist sector, chiefly authorities and section governments. When we archetypal purchased shares, we were attracted to the information that governments person lagged commercialized manufacture successful tech modernization and we believed Tyler would beryllium a cardinal beneficiary of the accelerating migrations of section and authorities governments to much modern, SaaS (Software-as-a-Service) and Cloud-based solutions. Given the company’s absorption connected vertical marketplace bundle for authorities and section governments and schools, we believed the institution enjoyed a sticky lawsuit basal with debased churn and much constricted economical sensitivity. Growth has been beneath our archetypal expectations, the authorities spending backdrop has been pressured, and AI disintermediation concerns person created added difficulties for each bundle companies. As portion of effort to trim our exertion bundle exposure, we concluded our condemnation successful Tyler’s concern exemplary vantage and marketplace imaginable were beneath different names successful the portfolio. We truthful elected to merchantability our shares."

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