HOTCHKIS & WILEY

HOTCHKIS & WILEY

Last Update: 11-14-2016

Number of Stocks: 177
Number of New Stocks: 11

Total Value: $23,885 Mil
Q/Q Turnover: 7%

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

HOTCHKIS & WILEY Watch

  • Hotchkis & Wiley Trims Corning, Microsoft, Exits HP

    HOTCHKIS & WILEY was formed in Los Angeles in 1980 and has focused exclusively on finding and owning undervalued companies that have a significant potential for appreciation. During the third quarter the guru’s largest sells were the following:


    The firm reduced its stake in Corning Inc. (GLW) by 31.63% with an impact of -1.24% on the portfolio.

      


  • John Burbank Boosts Alibaba, Exits Yahoo

    John Burbank (Trades, Portfolio) III is the chief investment officer of Passport Capital LLC, the global investment firm he founded in 2000. During the third quarter the guru’s largest trades were the following:


    The guru bought 18,783,715 shares in Marvell Technology Group Ltd. (MRVL) with an impact of 5.21% on the portfolio.

      


  • Mariko Gordon Adds 5 New Holdings to Portfolio

    Daruma Capital Management’s Mariko Gordon (Trades, Portfolio) acquired five new holdings in the third quarter.


    Gordon founded Daruma in 1995 in New York and currently serves as CEO. Gordon runs a concentrated portfolio of small to mid-cap stocks because she believes a concentrated portfolio is crucial to truly active management. She believes the best time to acquire a stock is when it offers good value and the factor that will propel the price higher can be identified.

      


  • Richard Perry Exits AIG, Time Warner

    Richard Perry (Trades, Portfolio) co-founded private investment management firm Perry Capital LLC in 1988. During the third quarter the guru’s largest sells were the following:


    His stake in American International Group Inc. (AIG) was closed with an impact of -13.65% on the portfolio.

      


  • Arnold Schneider's Best-Performing Stocks

    Arnold Schneider is president, chief investment officer and principal of Schneider Capital Management Corp. He manages a portfolio composed of 68 stocks with a value of $534 million. The following are the best performers of his investments.


    Marathon Oil Corp. (MRO) with a market cap of $12.01 billion has gained 17.0% year to date. Schneider's stake represents 0.11% of the company's outstanding shares and 2.66% of his total assets.

      


  • Hotchkis & Wiley Narrows Navistar International Position

    Hotchkis & Wiley Capital Management reduced its stake in Navistar International Corp. (NYSE:NAV) by 27.5% on Sept. 30.


    Hotchkis & Wiley was founded in 1980 in Los Angeles. The firm is interested in undervalued companies with considerable potential for appreciation. The investment team examines a company’s tangible assets, sustainable cash flow and potential for improving performance.

      


  • High Yield Small and Mid Caps Opportunities and Risks - Hotchkis & Wiley

    An overlooked opportunity or undue risk?

      


  • Kahn Brothers Trims Pfizer, Citigroup

    Irving Kahn, along with brothers Alan and Thomas, founded Kahn Brothers (Trades, Portfolio) & Company in 1978. The company has more than $800 million in assets under management. During the second quarter the firm’s largest trades were:


    The guru raised its shares in GlaxoSmithKline PLC ADR (GSK) by 188.24% with an impact of 2.08% on the portfolio.

      


  • Guru Buys Barclays, Office Depot, Morgan Stanley

    HOTCHKIS & WILEY was established in Los Angeles in 1980. In both the first and second quarters the guru bought shares in the following stocks:


    Barclays PLC ADR (BCS)

      


  • Hotchkis & Wiley Sells JPMorgan, Boosts Wells Fargo

    HOTCHKIS & WILEY was formed in Los Angeles in 1980 and has focused exclusively on finding and owning undervalued companies that have a significant potential for appreciation. During the second quarter the company traded the following stocks.


    The company reduced its stake in Great Plains Energy Inc. (GXP) by 76.09% with an impact of -0.77% on the portfolio.

      


  • Hotchkis & Wiley Large Cap Diversified Value

    The S&P 500 Index returned +2.5% during the second quarter of 2016. There was wide performance dispersion across sectors, with the best-performing sector (energy) outperforming the worst-performing sector (technology) by more than 14 percentage points. Despite the partial rebound in energy this quarter, over the last 12 months we have observed a massive flight away from cyclical market segments in favor of non-cyclicals. Pundits have described this trend as “risk off”, “flight to safety”, “low volatility”, “bond proxy” etc., but the reality is that non-cyclical businesses now appear to trade at an unusually high premium to cyclical businesses. Macroeconomic shocks like Brexit have only exacerbated the divergence. True to Benjamin Graham, we view stocks trading at discounts to intrinsic value as having a margin of safety. Ironically, it has become difficult to identify a margin of safety in businesses currently perceived as “safe” because their valuations have become stretched. Accordingly, our modest overweight allocation to cyclicals reflects the risk-adjusted valuation opportunities available and not a macroeconomic outlook. The most attractive individual opportunities reside within financials and energy, though we remain slightly underweight both sectors relative to the Russell 1000 Value as only select segments within the sectors offer compelling risk adjusted valuations—albeit highly compelling. Relative to the Russell 1000 Value Index the portfolio is overweight consumer discretionary and technology, underweight consumer staples, and relatively equal-weight other sectors. We do not know when value dislocations will revert, nor are we certain that these dislocations will not widen further before reverting. We have learned from past experience, however, that these cycles inevitably do normalize and we believe that our portfolio is well-positioned to benefit.


    Interest rates declined during the quarter, largely influenced by investors’ flight to US Treasuries in the aftermath of Brexit. The low rate environment has been a stubbornly persistent macroeconomic headwind for most financials, with banks disproportionately affected because their net interest margins are pressured. From a bottom-up fundamental perspective, however, the strengthening posture of US banks has been quite encouraging. Profitability has been solid and capital ratios are at/near all-time highs. All companies subjected to the Fed’s stress test have passed, which improves the potential for increased returns of capital to shareholders. Buying back shares at/below book value can be highly accretive and this group’s payout yield (dividends + share repurchases) currently stands at 8%1. Financials represent the portfolio’s largest sector, though the weight is about equal to that of the Russell 1000 Value—we are overweight banks and underweight REITs.

      


  • Hotchkis & Wiley's Best Investments Year to Date

    HOTCHKIS & 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. It manages a portfolio composed of 173 stocks with total value of $23.763 billion.


    Marathon Oil Corp. (MRO)

      


  • Bed Bath & Beyond Among Companies With Growing EPS

    Companies with growing EPS are often good investments as they can return a good profit to investors. Here is a selection of the most undervalued companies, according to the DCF calculator, that have a five-year growing EPS.


    Earnings per share of Bed Bath & Beyond Inc. (BBBY) grew by 10% over the last five years and according to the DCF calculator, the stock at the price of about $45 is undervalued and trading with a margin of safety of 50%.

      


  • Hotchkis & Wiley Boosts Stake in Discovery Communications

    Hotchkis & Wiley, an independent investment firm, increased its position in Discovery Communications Inc. Class A (NASDAQ:DISCA) by 50.02% as the company increased revenues and operating income during the first half of 2016.


    The firm initially purchased 3,888,600 shares of Discovery Communications at an average price of $31.39 during the first quarter of 2015. Throughout 2015, Hotchkis and Wiley raised their position to 9,875,281 shares, finishing the first quarter of 2016 with 10,347,018 shares. As of June 30, the independent firm owned 15,522,485 shares of Discovery Communications after purchasing 5,175,467 shares at an average price of $25.23.

      


  • Hotchkis & Wiley Buys Morgan Stanley, Citigroup, AIG in 1st Quarter

    HOTCHKIS & WILEY was founded in 1980 by John Hotchkis and George Wiley, value investors focusing on important investment parameters such as a company's tangible assets, sustainable cash flow and potential for improving business performance. During the first quarter the firm bought shares in the following stocks:


    The firm increased its stake in Marathon Oil Corp. (MRO) by 44.55% with an impact of 0.8% on the portfolio.

      


  • Companies Fall to 5-Year Lows

    According to GuruFocus' list of five-year lows, these guru stocks have reached their five-year lows: Guess? Inc. (NYSE:GES), Quality Systems Inc. (NASDAQ:QSII), RPX Corp. (NASDAQ:RPXC) and Ruby Tuesday Inc. (NYSE:RT).


    Guess? reaches $15.71

      


  • Valuing Best Buy for Potential Catalyst

    Best Buy (NYSE:BBY) is the largest specialty retailer of consumer electronics in the U.S. As of February, it had 1,037 stores in the U.S., whereas the number of international Best Buy stores stood around 216 with 350 stand-alone Best Buy mobile stores in the U.S. that focus on mobile phones and accessories. Currently the stock is trading at a P/E multiple of 10.30 while comparing it with peers, and it has an upside potential of 30% from the market price of $30.06.


    Company overview

      


  • Growing EPS, Margin of Safety: Herbalife, Viacom

    Companies with growing EPS are often a good investment as they can return a good profit to investors. Here is a selection of the most undervalued companies, according to the DCF calculator, that have a five-year growing EPS.


    Earnings per share of Silicom Ltd. (NASDAQ:SILC) grew by 23% over the last five years and according to the DCF calculator, the stock at Thursday's price of $28.4 is undervalued and trading with a margin of safety of 52%.

      


  • Hotchkis & Wiley Global Value Fund 1st Quarter Commentary

    MARKET COMMENTARY


    The Russell Developed Index had a flat -0.04% return during the first quarter of 2016, though it was anything but a flat trajectory. On February 11th, the index was down by more than 11% for the year before recovering over the quarter’s final seven weeks. This date also represented a turning point in the value/growth cycle. From the beginning of the year through February 11th, Russell Developed Index stocks with the lowest price-to-book ratios (lowest quintile) underperformed the index -20.5% vs. -11.7%. From February 11th through the end of the quarter, however, this lowest valued quintile outperformed the index +16.5% vs. +13.2%. While it is too early to proclaim a new value cycle is upon us, it is noteworthy that such cycles have lasted between 5 and 8 years historically once they have taken hold—this would be a welcomed tailwind for our approach.

      


  • Hotchkis & Wiley Large Cap Value Fund First Quarter Commentary

    MARKET COMMENTARY


    The S&P 500 Index returned +1.35% during the first quarter of 2016, though it was anything but a steady trajectory. On February 11th, the S&P 500 Index was down by more than 10% for the year before recovering over the quarter’s final seven weeks. This date also represented a turning point in the value/growth cycle. From the beginning of the year through February 11th, S&P 500 Index stocks with the lowest price-to-book (P/B) ratios (lowest quintile) underperformed the index -16.1% vs. -10.3%. From February 11th through the end of the quarter, however, this lowest valued quintile outperformed the index +16.2% vs. +13.0%. While it is too early to proclaim a new value cycle is upon us, it is noteworthy that such cycles have lasted between 5 and 8 years historically once they have taken hold—this would be a welcomed tailwind for our approach.

      


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