Hotchkis & Wiley Large Cap Disciplined Value Fund Class I (HWCIX)

Overview

The Hotchkis & Wiley Large Cap Fundamental Value Fund Institutional Shares operates as a mutual fund aiming to offer institutional investors the opportunity to engage in value investing by focusing on undervalued large-cap companies. It identifies firms with durable market positions, significant balance sheets, and potent cash flow capabilities. The fund’s strategy emphasizes stocks that not only provide a competitive payout yield but also maintain a lower price-to-earnings ratio compared to the wider market average. With a veteran management team at the helm, this mutual fund presents a deliberate approach to stock selection based on deep fundamental analysis and diversified exposure across several pivotal sectors including technology, financial services, energy, and healthcare.

Products and Services

Large Cap Fundamental Value Investing:

This core service of the fund involves the strategic investment in undervalued large-cap companies exhibiting strong market positions, healthy balance sheets, and effective cash flow. It targets those businesses that promise not just long-term capital growth but also a higher yield from dividends and share buybacks relative to the S&P 500. This highlights the fund’s dual focus on income generation and value appreciation.

Diversified Sector Exposure:

The fund ensures a broad diversification across various sectors, with significant allocations in technology, financial services, energy, and healthcare. This strategic sector diversification aids in mitigating risks and capitalizing on growth opportunities across different industry verticals. By adapting to market changes and reallocating investments as necessary, the fund aims to maximize returns while maintaining a conservative investment profile.

Disciplined Stock Selection:

At the heart of the fund’s strategy is a disciplined approach to stock selection, anchored in rigorous fundamental analysis. This involves a thorough evaluation of companies’ market positions, financial health, and potential for sustainable cash flow. The fund holds between 40 and 60 stocks at any given time, carefully chosen based on their potential to exceed market averages in terms of payout yield and maintain lower than average price-to-earnings ratios. This disciplined methodology is foundational in seeking to ensure robust portfolio performance over the long term.