NEW YORK ( TheStreet) -- TCW Select Equities (TGCEX) has the earmarks of a volatile fund. While typical peers hold more than 100 stocks, TCW maintains a concentrated portfolio of about 30 names. The concentrated approach can be risky because the portfolio would sink sharply if only a few holdings turn down. In addition, the TCW stocks are not cheap. At a time when the S&P 500 has a price-to-earnings ratio of 17, the fund's holdings trade at a multiple of 22.4. If trouble appears, the high-priced stocks could fall a long way before they hit bottom.But TCW has defied the odds. The fund has delivered strong returns while being less volatile than most competitors. During the past five years, the fund returned 8.5% annually, outdoing 94% of peers, according to Morningstar. The performance was particularly notable in downturns. During the turmoil of 2008, the fund surpassed competitors by a comfortable margin.
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