HOTCHKIS & WILEY

HOTCHKIS & WILEY

Last Update: 2014-08-14

Number of Stocks: 194
Number of New Stocks: 13

Total Value: $28,294 Mil
Q/Q Turnover: 10%

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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It Is the Right Moment to Bet On Yum
In this article, let's take a look at Yum! Brands, Inc. (YUM), a $30.98 billion market cap company, which is a global restaurant brand, with more than 40,000 units in more than 100 countries, including the KFC, Pizza Hut and Taco Bell chains. More...

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Hotchkis & Wiley Q2 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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Hotchkis & Wiley Large Cap Value Fund June 2014 Manager Q&A
An Interview with Sheldon Lieberman, Portfolio Manager More...

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Hotchkis & Wiley Comments on Vodafone
Stock selection in telecommunications also detracted from performance, as our lone position (Vodafone 3.0%*) lagged the market. Vodafone (VOD) reported modest results and a disappointing outlook due to elevated capital expenditures. Vodafone , Bank of America (BAC) (3.3%)*, and Target (TGT) (2.7%)* were the largest individual performance detractors. More...

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Hotchkis & Wiley Comments on Oracle
Stock selection in technology was the largest performance detractor for the quarter. Oracle (ORCL) (2.7%)* lagged after reporting results slightly below consensus estimates, though our investment thesis remains fully intact. More...

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Hotchkis & Wiley Large Cap Value Fund Second Quarter 2014 Commentary
Market Commentary More...

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High-Yield Covenant Trends - Hotchkis & Wiley Second Quarter Newsletter
Avoiding the Losers At Hotchkis & Wiley, we believe that averting mistakes is the single most important quality in successful high yield investing. We are not immune from making mistakes, but avoiding high defaults and low recovery rates is a key tenet of our strategy. This “avoid the losers” mentality is achieved by focusing on several factors. First, we have a preference for securities that are senior in the capital structure, i.e. we prefer senior or senior secured to subordinated bonds. Second, we emphasize asset coverage, where the value of the assets provides morethan- sufficient support. Covenant packages represent a third layer of defense that we believe is often overlooked. More...

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Hotchkis & Wiley Large Cap Value Fund First Quarter 2014 Market Commentary
Market Commentary More...

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Weekly CEO Buys Highlight: LGCY, OPK, FELP, FULL, ENH
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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A Look at a Global Multi Industrial Company
In this article, let's take a look at Johnson Controls Inc. (JCI), a leading manufacturer of automotive interior systems, automotive batteries and automated building control systems. More...

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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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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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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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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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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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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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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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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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