Exploring the Strategic Moves of a Renowned Value Investor
HOTCHKIS & WILEY recently submitted the 13F filing for the first quarter of 2025, providing insights into their investment moves during this period. 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. 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.
Summary of New Buy
HOTCHKIS & WILEY added a total of 41 stocks, among them:
- The most significant addition was PPG Industries Inc (PPG, Financial), with 1,162,800 shares, accounting for 0.42% of the portfolio and a total value of $127.15 million.
- The second largest addition to the portfolio was NEXTracker Inc (NXT, Financial), consisting of 521,730 shares, representing approximately 0.07% of the portfolio, with a total value of $21.99 million.
- The third largest addition was Brunswick Corp (BC, Financial), with 200,926 shares, accounting for 0.04% of the portfolio and a total value of $10.82 million.
Key Position Increases
HOTCHKIS & WILEY also increased stakes in a total of 193 stocks, among them:
- The most notable increase was Workday Inc (WDAY, Financial), with an additional 913,613 shares, bringing the total to 3,479,105 shares. This adjustment represents a significant 35.61% increase in share count, a 0.71% impact on the current portfolio, with a total value of $812.48 million.
- The second largest increase was Schlumberger Ltd (SLB, Financial), with an additional 4,066,500 shares, bringing the total to 5,992,997. This adjustment represents a significant 211.08% increase in share count, with a total value of $250.51 million.
Summary of Sold Out
HOTCHKIS & WILEY completely exited 49 holdings in the first quarter of 2025, as detailed below:
- Patterson Companies Inc (PDCO, Financial): HOTCHKIS & WILEY sold all 636,890 shares, resulting in a -0.07% impact on the portfolio.
- Sandy Spring Bancorp Inc (SASR, Financial): HOTCHKIS & WILEY liquidated all 428,190 shares, causing a -0.05% impact on the portfolio.
Key Position Reduces
HOTCHKIS & WILEY also reduced positions in 225 stocks. The most significant changes include:
- Reduced CVS Health Corp (CVS, Financial) by 5,162,835 shares, resulting in a -39.9% decrease in shares and a -0.77% impact on the portfolio. The stock traded at an average price of $59.84 during the quarter and has returned -7.86% over the past 3 months and 36.85% year-to-date.
- Reduced Baker Hughes Co (BKR, Financial) by 4,096,795 shares, resulting in a -44.4% reduction in shares and a -0.56% impact on the portfolio. The stock traded at an average price of $44.62 during the quarter and has returned -17.93% over the past 3 months and -6.72% year-to-date.
Portfolio Overview
At the first quarter of 2025, HOTCHKIS & WILEY's portfolio included 466 stocks, with top holdings including 4.79% in F5 Inc (FFIV, Financial), 3% in Citigroup Inc (C, Financial), 2.8% in Telefonaktiebolaget L M Ericsson (ERIC, Financial), 2.71% in Workday Inc (WDAY, Financial), and 2.65% in American International Group Inc (AIG, Financial).
The holdings are mainly concentrated in all 11 industries: Financial Services, Technology, Healthcare, Energy, Industrials, Consumer Cyclical, Communication Services, Utilities, Consumer Defensive, Basic Materials, and Real Estate.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
