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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Don't Starve Legacy Players Of Capital
- Brown‑to‑green transitions are essential because legacy players must fund and execute the shift.
- Starving old‑economy companies of capital raises their cost of capital and hinders the energy transition.
Anchor To IRR And Business Quality
- Anchor investments to expected IRRs and clear risk‑reward constraints.
- Prioritize durable competitive advantage and value added before valuation.
Power Is Structurally Short
- Power supply is structurally short and demand is rising faster than supply can respond.
- Long interconnection and permitting delays create durable bottlenecks and investment opportunities.