Inside Active by Bloomberg Intelligence TCW’s Horton on Transforming Legacy Industries
Oct 28, 2025
Eli Horton, Managing Director of Equities at TCW and senior portfolio manager for the TCW Transform Systems ETF, breaks down systems-based investing and its relevance to energy and industrial transformations. He argues that changing legacy industries is vital for future growth and highlights investment opportunities in power supply bottlenecks. Horton discusses the promise of decentralized energy systems, the importance of recognizing brown-to-green shifts in legacy companies, and the need for a disciplined approach to valuation amidst increasing demand for electricity.
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Think In Systems Not Sectors
- The economy should be viewed as interconnected systems rather than isolated sectors.
- Transforming energy, grid, materials and industrials requires coordinated changes across many sectors.
Concentrated 20–30 Stock Portfolio
- The TCW Transform Systems ETF holds 20–30 stocks to balance focus and diversification.
- Eli says concentration enables them to maximize capital in their best ideas and outperform over cycles.
Adapt When Facts Change
- When facts change, change your mind and adapt your portfolio.
- Re-underwrite investments regularly and shift capital toward better risk-adjusted ideas.