HOTCHKIS & WILEY

HOTCHKIS & WILEY

Last Update: 2014-03-10

Number of Stocks: 178
Number of New Stocks: 11

Total Value: $23,427 Mil
Q/Q Turnover: 8%

Countries: USA CAN
Details: Top Buys | Top Sales | Top Holdings  Embed:

HOTCHKIS & WILEY' s Profile & Performance

Profile

Incepted in Los Angeles in 1980, Hotchkis and Wiley has focused exclusively on finding and owning undervalued companies that have a significant potential for appreciation.

Web Page:http://www.hwcm.com/

Investing Philosophy

Hotchkis and Wiley are value investors focusing on important investment parameters such as a company's tangible assets, sustainable cash flow, and potential for improving business performance.

Total Holding History

Performance of Large Cap Value Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
201339.9531.558.4
201218.7415.43.3
2011-4.252.08-6.3
3-Year Cumulative59.1 (16.7%/year)55 (15.7%/year)4.1 (1%/year)
201019.8515.064.8
200934.3226.467.9
5-Year Cumulative156.1 (20.7%/year)125.5 (17.7%/year)30.6 (3%/year)
2008-46.84-37-9.8
2007-10.555.61-16.2
200613.715.79-2.1
20056.414.911.5
200422.011210.0
10-Year Cumulative79.8 (6%/year)104.1 (7.4%/year)-24.3 (-1.4%/year)
200342.7728.714.1
2002-7.51-22.114.6
20017.95-11.919.8
20009.17-9.118.3
1999-2.3421-23.3
15-Year Cumulative173.3 (6.9%/year)98.3 (4.7%/year)75 (2.2%/year)
19984.3228.6-24.3
199731.1533.4-2.3
199617.3823-5.6
199534.4237.6-3.2
1994-3.51.3-4.8
20-Year Cumulative469.2 (9.1%/year)483.2 (9.2%/year)-14 (-0.1%/year)
199315.7610.15.7
199213.967.66.4
199134.6330.54.1
1990-18.06-3.1-15.0
198923.6731.7-8.0
25-Year Cumulative924.5 (9.8%/year)1050.7 (10.3%/year)-126.2 (-0.5%/year)
198821.1516.64.5

Top Ranked Articles

HOTCHKIS & WILEY Buys Royal Dutch Shell Plc Cl B, Embraer-empresa Brasileira De, Employers Holdings, Sells Alltel Corp., Sara Lee Corp., Raytheon Co.
Value investing team HOTCHKIS & WILEY evaluates companies by looking at their tangible assets, sustainable cash flow and potential for improving business performance. During the past 5 eyars, everyone of their funds outperformed the market by wide margains. These are their buys and sells during the first quarter. HOTCHKIS & WILEY owns 124 stocks with a total value of $31.6 billion. Read more...
Stocks That Hotchkis & Wiley Keeps Buying
Hotchkis and Wiley focuses exclusively on finding and owning undervalued companies that have a significant potential for appreciation. Read more...
Hotchkis & Wiley's Strategies and Top Picks: JPM, HPQ, RDS.B, COP, WFC
Hotchkis and Wiley Capital is an investment management firm located in Los Angeles, Calif. The firm is led by George H. Davis Jr., a career investment professional who started his career with Hotchkis and Wiley in 1988. Davis is a graduate of Stanford University, receiving both his BA in Economics and his MBA from the institution. In addition, Hotchkis and Wiley boasts of the utilization of 13 CFA charter holders on their primary investment team, all with a rich history of experience and contacts in the industry. Read more...
HOTCHKIS & WILEY Buys Wachovia Corp., Citigroup Inc., AstraZeneca PLC, Sells Alcoa Inc., Kraft Foods Inc., ScheringPlough Corp.
Value investing team HOTCHKIS & WILEY focuses on important investment parameters such as a company's tangible assets, sustainable cash flow, and potential for improving business performance. Similar to many other successful value investors, they have underperformed lately. These are their buys and sells during the 4th quarter. Read more...
HOTCHKIS & WILEY Buys Eli Lilly & Co., Gap Inc., Autonation Inc., Sells Lockheed Martin Corp., Mosaic Co., Tesoro Corp.
HOTCHKIS & WILEY is another team manager who has achieved outstanding returns. They are buying out of favor homebuilders and banks. HOTCHKIS & WILEY owns 126 stocks with a total value of $33.1 billion. These are the details of the buys and sells during the second quarter. Read more...
» More HOTCHKIS & WILEY Articles

Commentaries and Stories

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Rating: 5.0/5 (1 vote)

Hotchkis & Wiley First Quarter Newsletter - 'Frequently Asked Questions'
The opportunity to visit with clients and prospects with exceptionally diverse backgrounds and personalities is one of the most interesting facets of our job. No two meetings are the same, and the thought-provoking discussions ensure that our profession never goes dull. Question topics range from broad market views to credit-specific details, with everything in between. In this newsletter, we address the questions that seem to be asked most frequently and/or we believe are particularly relevant in the current market environment. More...

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Rating: 3.0/5 (2 votes)

Hotchkis & Wiley Comments on IBM
We took a new position in IBM (IBM) (1.5%)*, which we believe is a well-positioned, diversified technology company with a strong balance sheet, prudent capital allocation, and an attractive valuation. More...

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Rating: 5.0/5 (1 vote)

Hotchkis & Wiley Large Cap Value Fund Fourth Quarter Manager Commentary
The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. Investment return and principal value of the fund will fluctuate, and shares may be worth more or less than their original cost when redeemed. Click quarter-end or month-end to obtain the most recent fund performance. More...

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Rating: 3.0/5 (2 votes)

Weekly 3-Year Low Highlights: DO, BIG, PGEM, CCG
According to GuruFocus list of 3-year lows; Diamond Offshore Drilling Inc, Big Lots Inc, Ply Gem Holdings Inc, and Campus Crest Communities have all reached their 3-year lows. More...

WEEKLY, 3, YEAR, LOW, HIGHLIGHTS


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Fallen Angels - A Neglected Segment of the High Yield Market: Hotchkis & Wiley Q4
The high yield market can be segmented in a multitude of ways — credit rating, sector, and seniority to name a few. The market can also be split into original high yield issues and fallen angel . Original high yield issues are credits that were high yield rated when issued (BB+ or below), and fallen angels are credits that were investment grade rated when issued (BBB - or above) , but have since been downgraded. The two market segments often exhibit considerably dif ferent characteristics and behaviors. We believe fallen angels represent an often-overlooked segment of the market that habitually offers compel ling risk/reward opportunities, particularly for bottom - up credit pickers. This newsletter will first compare current and historical characteristics of fallen angels and original high yield issues. Next, we will evaluate how fallen angels have performed relative to the rest of the high yield market. Finally, we will explore how fallen angels recover (or fail to recover) and highlight keys to investing in this high yield market niche effectively. I. Characteristics of the Fallen Angel Market The term "fallen angel" represents a former investment grade credit (BBB - rated or above) that has been downgraded to high yield (BB - rated or below) by one or more of the major rating agencies. Rating agencies will downgrade a bond when it perceive s increased risks regarding the bond issuer 's ability to make its principal and/or interest payments. The perceived increase in risk can be due to company - specific factors, industry factors, cyclical factors, or a combination thereof. As of September 30, 2013, the total size of the high yield market was approximately $1.25 trillion 1. As shown in Chart 1, fallen angels comprised approximately 13% of the market, or $161 billion as of this date. Historically, fallen angels have represented between 8% and 30% of the market at any given time. Continue reading here. More...

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Weekly 3-Year Low Highlight: EXC, RVBD, IRWD, SHOS
According to GuruFocus list of 3-year lows, Exelon Corp, Riverbed Technology Inc, Ironwood Pharmaceuticals, and SEARS HOMETOWN have all recently reached their three year lows. More...

WEEKLY, 3, YEAR, LOW, HIGHLIGHT


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Rating: 3.7/5 (3 votes)

High Yield and the Business Cycle - Hotchkis & Wiley Commentary
While history may not repeat itself verbatim, visceral human behavior often produces distinct cycles. We may learn from past mistakes, but collectively we exhibit the same instinctual traits as preceding generations. Many have attributed various social, cultural, and even military cycles to perpetual behavioral tendencies that society exhibits through time. Nowhere is this phenomenon more apparent than in economics, where cycles reign supreme. This newsletter's objective is to evaluate the business cycle and its influence on the high yield market. We will explore various economic, fundamental, and policy-related metrics to assess where we stand in the business cycle currently, and the underlying implications for high yield investors. I. Business Cycles Historically The National Bureau of Economic Research ("NBER") provides the most widely-accepted data regarding business cycles. NBER is a nonprofit research organization led by economic practitioners and academics with résumés that would make the most prominent world leaders blush. The organization forms a Business Cycle Dating Committee that determines periods of expansion and periods of contraction by defining the peaks and troughs of business cycles. Chart 1 depicts NBER-defined business cycles over the past 50 years. A full business cycle encompasses a period of expansion followed by a period of contraction (i.e. trough-to-trough)1 . Chart 2 highlights the duration of full business cycles over the past 50 years. History warrants several observations. First, expansions dominate the duration of business cycles. Second, contemporary business cycles are punctuated by Federal Reserve actions. Third, short cycles have coincided with periods of volatile inflation expectations (e.g. late 1960s, early 1980s) while long cycles have coincided with stable inflation expectations (e.g. mid 1980s to today, and maybe further). Naively applying the 50-year historical average suggests we are roughly two-thirds of the way into the current cycle. While this is an interesting observation, is hardly evidence on which high yield investment decisions should be based. Instead, after we evaluate the relationship between the high yield market and business cycles (Section II), we will explore various fundamental factors in an attempt to identify metrics that have been successful predictors of contraction periods historically (Section III). Continue reading here. More...

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Rating: 3.3/5 (3 votes)

Top Guru-Held European Companies as of the Second Quarter Dodge & Cox,HOTCHKIS & WILEY - Top Guru-Held European Companies As Of The Second Quarter
By using the Aggregated Portfolio Screener, we filtered through the 51 highest rated gurus to find out what international companies they liked the best. The following companies are each held by 10 gurus as of the second quarter. [b] More...

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Rating: 3.8/5 (4 votes)

Hotchkis & Wiley Mid-Cap Value Strategy - Q&A with Stan Majcher, Portfolio Manager
Mid caps are an attractive but often overlooked way to participate in the equity market. Portfolio Manager Stan Majcher shares his insight on the mid cap market, the management of the Fund, and illustrates why mid caps make sense for the long-term investor. More...

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Rating: 4.5/5 (2 votes)

Hotchkis & Wiley Diversified Value Fund Commentary Q2 2013
Market Commentary During the second quarter, 10-year US Treasury bond yields bottomed at 1.6% before ballooning to 2.6% once the Fed suggested it might taper its proactive bond purchasing program. The rapid interest rate rise has focused attention on "low risk" bond portfolios and reminded investors that it is possible to lose money in high grade fixed income. Meanwhile, US equity markets continued to reward investors as the S&P 500 Index ended the quarter with a +2.91% return and the Russell 1000 Value Index rose +3.20%. While an extended rise in equity prices would normally portend a cautious outlook, corporate earnings have improved such that valuation multiples remain below historical averages—particularly considering widespread balance sheet deleveraging and improved capital allocation policies. In addition to reasonable valuations, the US economy appears to be on the mend. A recovery in the US housing sector has improved consumer balance sheets as well as confidence, which should further stimulate economic activity. Moreover, employment and manufacturing have continued to exhibit signs of progress. Unfortunately, the outlook for equities is not entirely upbeat—Europe has struggled, More...

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Rating: 4.5/5 (2 votes)

Hotchkis & Wiley Q2 Newsletter: The State of the High Yield Market Fundamentals, Technicals, & Valuation
During our regular meetings with investors, the question we are asked most often is a rather simple one: "What is your outlook for the high yield market?" The question's form can take one of several iterations (e.g. Are you bullish or bearish and why? What past environment best resembles the current environment?), but each is straightforward and the underlying objective for each is indistinguishable. Unfortunately, a simple question is not always a prelude to a simple answer. The complexities involved in answering this question are significant. For the sake of simplicity and brevity, we address the question by isolating three principal facets of the high yield market: 1) Fundamentals; 2) Technicals; and 3) Valuation. The combined appraisal of these three factors forms our opinion of the current state of the overall high yield market. In preview, we are neither exceptionally bullish nor exceptionally bearish on the current state of the high yield market. We view fundamentals as above-average, technicals as average, and valuation as below-average. The combination of these opinions results in a neutral view. We will explore how we arrived at these conclusions by assessing each of the three aspects in greater detail. Continue reading here. More...

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Rating: 3.8/5 (5 votes)

Hotchkis & Wiley Webinar Highlights - A Review of the Current High-Yield Environment
On our April 17th webinar, Mark Hudoff, portfolio manager of the Hotchkis & Wiley High Yield strategy shared his thoughts on the current opportunities and challenges in the high yield marketplace. More...

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Hotchkis & Wiley Q1 Newsletter - The Interest Rate Environment: Comparing High Yield Bonds and Bank Loans
Introduction: It has been over four years since the Federal Open Market Committee ("FOMC") voted to lower the overnight rate at which banks lend to each other ("fed funds rate") to a range of 0.00% - 0.25%. The FOMC has maintained this target ever since and Treasury rates of all maturities have persisted near record lows as a consequence. The prevailing environment has prompted many investors, Hotchkis & Wiley included, to question how long it will be before interest rates rise once again. More...

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Rating: 2.5/5 (6 votes)

The Interest Rate Environment: Comparing High Yield Bonds and Bank Loans - Hotchkis & Wiley Q1 Newsletter
Introduction: It has been over four years since the Federal Open Market Committee (“FOMC”) voted to lower the overnight rate at which banks lend to each other (“fed funds rate”) to a range of 0.00% - 0.25%. The FOMC has maintained this target ever since and Treasury rates of all maturities have persisted near record lows as a consequence. The prevailing environment has prompted many investors, Hotchkis & Wiley included, to question how long it will be before interest rates rise once again. More...

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Rating: 4.0/5 (3 votes)

Weekly CEO Buys Highlight: UTHR, DNR, RICK, PERF
According to GuruFocus Insider Data, these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below: More...

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Rating: 3.3/5 (8 votes)

Hotchkis & Wiley Large Cap Diversified Value Fund Q3 Commentary
MARKET COMMENTARY: Despite macroeconomic and geopolitical uncertainties, U.S. equities climbed in the third quarter with the S&P 500 Index returning +6.4% and the Russell 1000 Value Index returning +6.5%. Investors appeared to take notice of Corporate America's improving health. Of the S&P 500 constituents reporting earnings during the quarter, more than 70% beat Wall Street estimates and one out of four beat estimates by more than ten percent. Strong cash flows, which had been predominantly retained in an effort to improve balance sheets, are now being returned to shareholders with increased regularity via dividends and share repurchases. More...

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Rating: 3.4/5 (7 votes)

Hotchkis & Wiley - The Advantages of Limiting Assets
Introduction As our lives become longer, it seems, our memories become shorter. Behavioral psychologists have studied this paradox ad nauseam in an attempt to explain why people make the same mistakes over and over again. We are all guilty of such behavior. Have you ever said to yourself, “I sure am glad I stayed up late again last night to watch that rerun I’ve already seen five times”? How about, “Boy, I always feel so much better when I go for that third donut”? Neither have we, but that doesn’t mean we won’t repeat these behaviors at some point in the future. The reason defective behaviors are repeated with such regularity is debatable—shortsightedness, delusion, greed—but we’ll leave that for the psychologists to sort out. Instead, we simply acknowledge that most of us are predisposed to making repeated mistakes despite our better judgment. More...

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Rating: 2.7/5 (9 votes)

Guru Stocks at 52-Week Low: VALE, MCD, FB, EXC, CHT
According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows. More...

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Rating: 3.4/5 (5 votes)

Weekly CEO Buys Highlight: SYMC, TDY, PNK, FNFG, OCR
According to GuruFocus Insider Data, these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below: More...

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Rating: 3.3/5 (4 votes)

Weekly CEO Buys Highlight: UTHR, PMC, ABR, AIR, SCHS
According to GuruFocus Insider Data, these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below: Utd Therapeutic (UTHR): CEO Martine A Rothblatt Bought 20,858 Shares More...

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