Hotchkis & Wiley Invests in International Paper, Packaging Corp. of America and Eaton

Century Aluminum, Washington Federal, Denbury Resources and Commercial Vehicle Group are other new stocks in the portfolio

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Dec 28, 2015
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Hotchkis & Wiley Capital Management LLC made a dozen new buys in the third quarter.

Hotchkis & Wiley was founded in 1980 by John Hotchkis and George Wiley. They shared the belief that discipline and independent analysis are the keys to finding undervalued securities that have the potential for appreciation. For more than 35 years, Hotchkis & Wiley has been managing value portfolios for institutional and individual investors. Following are the stocks that got new positions in the portfolio during the third quarter.

The company acquired 2,804,885 shares of International Paper Co. (IP) and paid an average price of $44.83 per share. The deal had a 0.43% impact on the portfolio, and the price dropped by 14%. Currently it is trading at $38.52 per share.

The company has a market cap of $15.97 billion and an enterprise value of $19.78 billion. The rating of International Paper’s profitability is 5/10, but it had a weak ROA that is underperforming the Global Packaging & Containers industry and a strong ROE that is overperforming.

The stock also has the following one-year growth rates: 0.20% for revenue, 47.90% for EBITDA and a negative rate of 34.80% for book value.

Steven Cohen (Trades, Portfolio) is another guru who acquired a new position in the company.

Another new buy for the company was its purchase of a 1,688,816-share stake in Packaging Corp. of America (PKG). It paid an average price of $66.76 per share. The deal had a 0.41% impact on the portfolio, and the stock price dropped by 4%. Currently it is trading at $64.30 per share.

The company has a market cap of $6.24 billion and an enterprise value of $8.4 billion. The rating of Packaging Corp. of America’s profitability is 5/10, confirmed by its strong returns that are overperforming the Global Packaging & Containers industry.

The stock also has the following one-year growth rates: 1.90%, 8.50% for EBITDA and 5.40% for book value.

The company also acquired a 1,688,816-share stake in Eaton Corp. PLCĂ‚ (ETN, Financial). It paid an average price of $59.05 per share. The deal had a 0.21% impact on the portfolio, and the stock price dropped by 10%. Currently it is trading at $53.25 per share.

The company has a market cap of $24.64 billion and an enterprise value of $32.8 billion. The rating of Eaton’s profitability is 7/10, confirmed by its strong returns that are overperforming the Global Diversified Industrials industry.

The stock also has the following negative one-year growth rates: 3.40%, 16.20% for EBITDA and 5.00% for book value.

The stock also acquired new positions in the portfolios of Louis Moore Bacon (Trades, Portfolio) and John Hussman (Trades, Portfolio)

Xura Inc. (MESG) was another new buy for the company. It acquired a 1,817,577-share stake and paid an average price of $20.01 per share. The deal had a 0.16% impact on the portfolio, and the stock price went up 23%. Currently it is trading at $24.60 per share.

The company has a market cap of $616.45 billion and an enterprise value of $270.38 billion. The rating of Xura’s profitability is 5/10, but its strong returns are overperforming the Global Telecom Services industry.

Arnold Schneider (Trades, Portfolio) and Jim Simons (Trades, Portfolio) also acquired new positions in the company.

The company also bought a 3,255,961-share stake in Century Aluminum Co. (CENX). It paid an average price of $6.98 per share. The deal had a 0.06% impact on the portfolio, and the stock price dropped by 32%. Currently it is trading at $4.75 per share.

The company has a market cap of $412.93 billion and an enterprise value of $544.95 billion. The rating of Century Aluminum’s profitability is 7/10, confirmed by its strong returns that are overperforming in the Global Aluminum industry. .

James Barrow (Trades, Portfolio) is another guru who acquired a new position in the company.

Washington Federal Inc. (WAFD) as a new buy in which the firm acquired a 526,916-share stake and paid an average price of $22.91 per share. The deal had a 0.05% impact on the portfolio, and the stock price went up 6%. Currently it is trading at $24.26 per share.

The company has a market cap of $2.26 billion and an enterprise value of $3.8 billion. The rating of Washington Federal’s profitability is 7/10 and is confirmed by its strong returns that are overperforming in the Global Savings & Cooperative Banks industry.

The stock also has the following one-year growth rates: 10.00%, 9.70% for EBITDA and 4.90% for book value.

The stock also got a new position in the portfolio of Jim Simons (Trades, Portfolio).

The company bought a 20,519-share stake in Denbury Resources Inc. (DNR) and paid an average price of $3.87 per share. The stock price dropped by 41%; currently it is trading at $2.30 per share.

The company has a market cap of $807.67 million and an enterprise value of $4.15 billion. The rating of Denbury Resources’ profitability is 8/10, but it has negative returns that are underperforming the Global Oil & Gas E&P industry.

The stock also has the following negative one-year growth rates: 41.60% for revenue, 374.50% for EBITDA and 60.10% for book value.

Jim Simons (Trades, Portfolio) acquired a new position in the company and Ray Dalio (Trades, Portfolio) and Jeremy Grantham (Trades, Portfolio) increased their holdings by 389.19% and 86.20%.

Commercial Vehicle Group Inc. (CVGI) was another new buy for the firm, which acquired a 10,342-share stake and paid an average price of $5.32 per share. The stock price dropped by 46%; currently it is trading at $2.89 per share.

The company has a market cap of $86.69 million and an enterprise value of $226.54 million. The rating of Commercial Vehicle Group’s profitability is 7/10, and its ROE is overperforming the Global Packaging & Containers industry while ROA is underperforming.

The stock also has the following one-year growth rates: 4.30%, 17.10% for EBITDA and 6.10% for book value.

Jim Simons (Trades, Portfolio) acquired a new position, Arnold Schneider (Trades, Portfolio) and Chuck Royce (Trades, Portfolio) reduced their holdings by 3.37% and 6.55%.

The company bought a 10,463-share stake in Lattice Semiconductor Corp. (LSCC). It paid an average price of $4.6 per share. The stock price went up 33%; currently it is trading at $6.12 per share.

The company has a market cap of $721.58 million and an enterprise value of $941.64 million. The rating of Lattice Semiconductor’s profitability is 4/10, confirmed by its negative returns that are underperforming the Global Semiconductors industry.

The stock also has the following one-year growth rates: 6.100% and negative rates of 247.50% and 21.30% for EBITDA and book value.

This quarter the stock did not get a new position in another portfolio, but George Soros (Trades, Portfolio) and NWQ Managers (Trades, Portfolio) increased their holdings over 10%

Niska Gas Storage Partners LLCĂ‚ (NKA) as another new buy in which the firm acquired a 75,000-share stake and paid an average price of $3.37 per share. The stock price dropped by 5%, and currently it is trading at $3.19 per share.

The company has a market cap of $121.18 million and an enterprise value of $85.75 million. The rating of Niska Gas Storage’s profitability is 4/10 and is confirmed by its negative returns that are overperforming the Global Oil & Gas Midstream industry.

The stock also has the following negative one-year growth rates: 68.80% for revenue, 479.00% for EBITDA and 75.40% for book value.

Jim Simons (Trades, Portfolio) acquired a new position, and Arnold Schneider (Trades, Portfolio) and Chuck Royce (Trades, Portfolio) reduced their holdings by 3.37% and 6.55%.

The company bought a 15,035-share stake in NL Industries Inc. (NL). It paid an average price of $3.37 per share. The stock price dropped 41% and currently it is trading at $3.19 per share.

The company has a market cap of $145.59 million and an enterprise value of $72.37 million. The rating of NL Industries’ profitability is 5/10, confirmed by its negative returns that are underperforming the Global Industrial Distribution industry.

The stock also has the following one-year growth rates: 6.30%, 247.50% and a negative rate of 37.90% for book value, but EBITDA did not change.

This quarter the stock traded by two funds in which HOTCHKIS & WILEY acquired a new position and Jim Simons (Trades, Portfolio) increased his holdings by 22.89%.