Last Update: 10-10-2017

Number of Stocks: 170
Number of New Stocks: 9

Total Value: $24,898 Mil
Q/Q Turnover: 7%

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


  • Hotchkis & Wiley Large Cap Diversified Value 2nd Quarter Commentary

    The S&P 500 Index returned +3.1% in the second quarter. Growth stocks outperformed value stocks in the quarter, with the Russell 1000 Growth Index returning +4.7% compared to the Russell 1000 Value Index’s return of +1.3%. Year-to-date, the growth index has outperformed the value index by more than 9 percentage points, a reversal of value’s 10 percentage point advantage in 2016. In the last few years, investors flocked to companies with high dividend payouts (i.e. bond surrogates) because interest rates have been persistently low. In 2017, with GDP advancing at a positive but lackluster pace, investors have flocked to stocks that have exhibited above average growth. This has not only led to growth’s outperformance but also produced a market with narrow leadership. More than one-third of growth’s outperformance has come from just five mega cap stocks—Apple, Amazon, Facebook, Google, and Microsoft.

    Financials have represented the portfolio’s largest sector since the end of the financial crisis, and banks have comprised a meaningful portion of that exposure. In late June, the Federal Reserve Board completed its Comprehensive Capital Analysis and Review (“CCAR”) and did not object to the capital plans of the 34 participating companies1. In its press release, the Fed noted that the common equity capital ratio of the 34 banks “has more than doubled from 5.5 percent in the first quarter of 2009 to 12.5 percent in the first quarter of 2017”. Of the 34 banks, 26 are public US companies. These 26 banks were approved for returning 100% of earnings to shareholders on average, which equates to 7.5% of their equity value; i.e. a 7.5% payout yield—a handful have a payout yield of more than 10%. We view this as a compelling dynamic for companies that have not had better balance sheets in our lifetime.


  • Gurus’ Holdings With Negative Performances

    While gurus hold positions in these companies, the stock prices and returns continue to fall. These are the worst-performing stocks over the last three months with a long-term presence in more than three gurus’ portfolios.

    Harley-Davidson Inc. (HOG) had a negative performance of 5.1% over the last six months. Three mutual funds hold the stock with a total weight of 0.20% on their portfolios.


  • T Boone Pickens Sells Superior Energy, Newell Brands, Buys Enterprise Products

    T Boone Pickens (Trades, Portfolio) is an American businessman who chairs the private equity firm BP Capital Management. He manages a portfolio composed of 51 stocks with a total value of $218 million. During the first quarter the guru traded the following stocks:

    The investor closed his Superior Energy Services Inc. (SPN) holding with an impact of -3.36% on the portfolio.


  • Hotchkis & Wiley Comments on Hewlett-Packard Enterprise

    We increased the weight in technology, primarily by adding to the existing position in Hewlett-Packard Enterprise (“HPE”) (NYSE:HPE) which became the portfolio’s largest weight by quarter-end. To become a large position, a stock must be attractively valued, have a strong balance sheet, possess a predictable business model, exercise prudent capital allocation, and be liquid. HPE scores well on each of these traits. The company is divesting its software and enterprise services businesses. After adjusting for these transactions the remaining hardware business trades between 5 and 6 times earnings.


  • Large Cap Fundamental Value 1st Quarter 2017 Commentary



  • Charles Brandes Sells Western Digital, Citigroup, JPMorgan

    Charles Brandes (Trades, Portfolio) is the chairman of Brandes Investment Partners. During the first quarter the guru sold shares in the following stocks:

    The investor closed his position of Corning Inc. )GLW) with an impact of -1.69% on the portfolio.


  • Ken Fisher Buys Vodafone, Daimler, Itau Unibanco

    Fisher Asset Management founder Ken Fisher (Trades, Portfolio) gained 78 new holdings during the first quarter of the year. His top three buys were Vodafone Group PLC (NASDAQ:VOD), Daimler AG (DMLRY) and Itau Unibanco Holding SA (NYSE:ITUB).

    Fisher founded his firm in 1979. He currently serves as the CEO and chief investment officer. The firm uses a top-down approach to determine which countries and sectors will generate the highest returns.


  • Hotchkis & Wiley Diversified Value Fund 1st Quarter Commentary


    The S&P 500 Index increased +6.07% in the first quarter of 2017, continuing a nearly unbroken string of quarterly gains since the beginning of 2013. The rise in equities has triggered debate about the US equity market’s current valuation. Most traditional valuation measures are above historical averages; however, these metrics are below historical averages after adjusting for the low interest rate environment. Our general view is that the broad market, as defined by the S&P 500, is fully valued. Often overlooked, however, is that some market segments contain bargains while others are richly valued. Finding such opportunities has become more difficult in recent years but we continue to observe a large valuation discrepancy between cyclical market segments and those viewed as bond surrogates. Today’s popular stocks are those that have relatively stable earnings and high dividend payouts, like REITs, consumer staples, and regulated utilities. While the underlying businesses are stable, these are mature, slow-growing market segments, and paying 20-25x earnings is a risky proposition in our view. Investing in passive ETFs that track common equity indices is the other preferred strategy of the day, pouring still more investor capital into overvalued stocks and exacerbating the situation. Meanwhile, some market segments that have been shunned trade for half the valuation levels of the more favored areas of the market, and in select circumstances, even trade at a discount to the replacement cost of the business.


  • Director Invests in Lonestar Resources

    Director Bernard Lambilliotte purchased 50,000 shares of Lonestar Resources US Inc. (NASDAQ:LONE) for $5 per share on April 13, according to SEC filings.

    Lambilliotte owns 281,441 shares of Lonestar Resources.


  • 6 Low P/E Stocks Gurus Are Buying

    Here are six stocks gurus are buying that are trading with low price-earnings (P/E) ratios. Some of them are great investments; others need a double check, according to the DCF calculator.

    Infosys Ltd. ADR (INFY) with a market cap of $31.86 billion is trading with a P/E ratio of 14.84 and a price-sales (P/S) ratio of 3.14. According to the DCF calculator the stock has a fair value of $21.5 while trading at about $13.94. The price has dropped by 22% during the last 12 months and is now 31.90% below its 52-week high and 1.46% above its 52-week low.


  • Stocks With Low P/Es and Margins of Safety

    Here are eight stocks gurus are buying that are trading with a very low price-earnings (P/E) ratio. Most of them are greatly undervalued, according to the DCF calculator.

    Unum Group (UNM) with a market cap of $10.3 billion is trading with a P/E ratio of 11.64 and a price-sales (P/S) ratio of 0.97. The price has risen 47% during the last 12 months and is now 1.68% below its 52-week high and 85.04% above its 52-week low.


  • Bernard Horn Gains 2 Holdings, Cuts 3 Others

    Bernard Horn (Trades, Portfolio) of the Polaris Global Value Fund purchased two new holdings and exited three others in the third quarter.

    Horn founded Polaris Capital Management in 1995. The firm invests in discounted but high-quality stocks in developed and emerging markets. All trades are managed on a team basis using a consistent process and approach. The investment philosophy is based on two basic beliefs: country and industry are important factors in price, and global market fluctuations produce mispriced stocks.


  • 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.


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