TCW exits TYL position in Q1 2026 citing below-expectation growth and prolonged underperformance in public-sector software.
TCW Concentrated Large Cap Growth Fund sold its stake in Tyler Technologies (NYSE:TYL) during Q1 2026, citing growth shortfalls. The stock closed at $322.74 on May 19, 2026, down 43.06% over the past year and 6.82% in the last month.
Tyler Technologies, a $13.28 billion provider of government-focused software, had been seen as a beneficiary of public-sector tech modernization. The fund initially targeted TYL for its sticky customer base and SaaS transition potential, but performance lagged expectations.
The exit follows a broader reassessment of growth assumptions in vertical software for state and local governments.