Insights into Hotchkis & Wiley's Latest 13F Filing

Incepted in Los Angeles in 1980, Hotchkis and Wiley has carved a niche in the investment world by focusing on undervalued companies with a potential for significant appreciation. As staunch value investors, they emphasize on tangible assets, sustainable cash flow, and the potential for business performance improvement. Their latest 13F filing for the second quarter of 2024 offers a window into their strategic investment decisions during this period.

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New Additions to the Portfolio

HOTCHKIS & WILEY (Trades, Portfolio) expanded their portfolio by adding a total of 7 stocks. Noteworthy new acquisitions include:

• Dominion Energy Inc (NYSE:D), with 5,158,700 shares, making up 0.88% of the portfolio and valued at $252.78 million.

• Truist Financial Corp (NYSE:TFC), comprising 4,557,705 shares, which represent approximately 0.62% of the portfolio, with a total value of $177.07 million.

• WESCO International Inc (NYSE:WCC), with 269,860 shares, accounting for 0.15% of the portfolio and a total value of $42.78 million.

Significant Increases in Existing Positions

HOTCHKIS & WILEY (Trades, Portfolio) also increased their stakes in a total of 271 stocks, with the most notable increases being:

• Workday Inc (NASDAQ:WDAY), with an additional 2,632,148 shares, bringing the total to 2,658,068 shares. This adjustment represents a significant 10,154.89% increase in share count, impacting 2.05% of the current portfolio, and a total value of $594.24 million.

• WPP PLC (NYSE:WPP), with an additional 3,401,014 shares, bringing the total to 3,621,314. This adjustment represents a 1,543.81% increase in share count, with a total value of $165.78 million.

Complete Exits from Certain Holdings

In the second quarter of 2024, HOTCHKIS & WILEY (Trades, Portfolio) completely exited 8 holdings, including:

• GE Aerospace (NYSE:GE), where all 1,669,928 shares were sold, resulting in a -0.79% impact on the portfolio.

• International Paper Co (NYSE:IP), with all 2,072,439 shares liquidated, causing a -0.27% impact on the portfolio.

Reductions in Key Positions

Furthermore, HOTCHKIS & WILEY (Trades, Portfolio) reduced their positions in 196 stocks. The most significant reductions include:

• Marathon Oil Corp (NYSE:MRO) by 14,265,229 shares, resulting in a -62.67% decrease in shares and a -1.35% impact on the portfolio. The stock traded at an average price of $27.72 during the quarter and has returned 3.73% over the past 3 months and 15.09% year-to-date.

• The Goldman Sachs Group Inc (NYSE:GS) by 503,369 shares, resulting in a -42.04% reduction in shares and a -0.7% impact on the portfolio. The stock traded at an average price of $438.8 during the quarter and has returned 7.49% over the past 3 months and 28.65% year-to-date.

Portfolio Overview and Sector Allocation

As of the second quarter of 2024, HOTCHKIS & WILEY (Trades, Portfolio)'s portfolio included 483 stocks. The top holdings included 3.28% in Telefonaktiebolaget L M Ericsson (NASDAQ:ERIC), 3.18% in F5 Inc (NASDAQ:FFIV), 3.16% in Citigroup Inc (NYSE:C), 2.9% in Wells Fargo & Co (NYSE:WFC), and 2.78% in APA Corp (NASDAQ:APA). The holdings are mainly concentrated across all 11 industries, including Financial Services, Technology, Energy, Healthcare, Industrials, Consumer Cyclical, Communication Services, Consumer Defensive, Utilities, 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.

This article first appeared on GuruFocus.