TCW Concentrated Large Cap Growth Fund on KLA Corporation
Thesis
TCW purchased KLA because increasing semiconductor complexity is driving greater demand for advanced inspection, review and metrology systems across chip fabrication. The fund is attracted to KLA's competitive position, industry-leading margins, pricing power and record of returning cash to shareholders. It believes the current share price fails to reflect the company's longer-term cash-flow generation potential.
“the current share price does not adequately reflect the longer-term cash flow generation potential”