Hotchkis & Wiley Global Value Fund

Investor Summary

The fund targets institutional and high-net-worth investors with a $250,000 minimum investment requirement. Launched on December 31, 2012, the fund charges a net expense ratio of 0.70% with fee waivers through August 29, 2026. The fund is available only to U.S. residents and territories, distributes dividends annually, and maintains significant flexibility in market cap and geographic allocation. As an International Equity Global Large-Stock Value fund, it typically invests in companies with market capitalizations exceeding $1 billion and focuses on both domestic and international opportunities with at least 40% in non-U.S. equities.

Fund Strategy

The Global Value Fund seeks to own 40-80 of the most attractively valued companies in domestic and international equity markets. The fund looks for durable businesses run by shareholder-friendly management teams trading at attractive valuations relative to long-run normalized earnings. Since 1980, Hotchkis & Wiley has focused on discovering undervalued securities through extensive internal research, specializing in disciplined value investing and bottom-up fundamental research to identify undervalued securities. The approach is anchored in the belief that a disciplined research-driven approach focused on asset valuation and coverage will minimize default losses and generate superior risk-adjusted returns.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
10.43%	9.97%	6.47%

Executive Summary

The Hotchkis & Wiley Global Value Fund returned 9.97% in Q2 2026, underperforming the MSCI World Index's 13.76% return but outperforming the MSCI World Value Index's 9.21% return. Market leadership was exceptionally concentrated in AI-related stocks, with semiconductors and hardware posting returns exceeding 100%, while the median value stock returned just 4.3%. Momentum stocks are trading at 99th percentile extremes versus the past 70 years, fueled by boundless AI excitement and spiking investor leverage. The manager expresses concern about valuations in AI beneficiaries, noting that capital expenditures for AI data centers are approaching $850 billion annually while revenues remain a small fraction of that figure. They favor overlooked opportunities in enterprise software, where AI disruption fears are overstated, and defensive sectors like healthcare, consumer staples, and utilities. Healthcare was the largest positive contributor, driven by health insurers showing evidence of profitability recovery. The portfolio remains positioned with high-quality businesses at attractive valuations, avoiding excessive momentum and concentration risk while maintaining exposure to structurally undersupplied energy markets.

Core Thesis

The manager believes large pockets of the market overstate both the positive and negative impacts of AI investments, creating opportunities in high-quality businesses with attractive valuations that have been left behind in the momentum-driven rally, particularly in enterprise software and defensive sectors.

Forward Outlook

The manager maintains a cautious stance on market concentration and momentum extremes while remaining constructive on select opportunities in overlooked defensive sectors and enterprise software. They expect continued volatility as the market reconciles AI investment levels with actual revenue generation, and view current positioning as well-suited to navigate this environment through focus on fundamental value and quality businesses with durable competitive moats.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Jul 27 2026	2026 Q2	APA, ELV, FFIV, GOOGL, HUM, WDAY	AI, energy, Enterprise Software, global, healthcare, momentum, semiconductors, value	HUM FFIV ELV GOOGL APA WDAY	The fund navigated extreme market concentration and momentum by avoiding richly valued AI stocks while capitalizing on overlooked opportunities in enterprise software and healthcare. The manager believes AI disruption fears for mission-critical software are overstated and sees attractive risk/return in defensive sectors left behind in the rally. Healthcare insurers drove outperformance as profitability recovers from cycle lows.
Apr 20 2026	2026 Q1	APA, CRM, ERIC, SLB, WDAY, WPP.L	energy, Geopolitical, global, healthcare, software, value	APA SLB ERIC WDAY WPP.L CRM	Global value fund underperformed despite 46% energy gains as software and healthcare overweights detracted. Manager maintains conviction that AI displacement fears for enterprise software are overblown, citing strong retention and switching costs. Energy positioning benefited from geopolitical supply disruptions, reinforcing thesis of structural undersupply. Disciplined approach continues targeting controversial segments with temporary headwinds.
Jan 29 2026	2025 Q4	AIG, BNP.PA, CMCSA, CRM, ELV, ERIC, FFIV, FISV, GEHC, GOOGL, UNH, USB, WBD, WDAY	AI, financials, global, healthcare, software, technology, valuation, value	-	Hotchkis & Wiley Global Value Fund exploits valuation disparities in concentrated markets, trading at 13x forward earnings versus 23x for MSCI World. The fund increased software exposure viewing AI as tailwind, reduced financials after strong performance, and maintains healthcare overweight. Strong contributors included Alphabet and Warner Bros. Discovery while F5 faced cybersecurity headwinds.
Oct 28 2025	2025 Q3	AIG, CMCSA, D, ELV, ERIC, FFIV, GEHC, GOOGL, HEIA.AS, JDEP.AS, UNH, WBD, WDAY, WPP.L	AI, financials, global, healthcare, Media, technology, value	-	The Global Value Fund underperformed in Q3 2025 as growth outpaced value amid AI-driven technology leadership and media consolidation trends. Stock selection challenges and financials underweight hurt performance, though technology overweight and strong Alphabet results provided offsets. The manager maintains conviction in longer-term prospects for current detractors including healthcare and telecom holdings.
Jul 27 2025	2025 Q2	AIG, BAB.L, CMCSA, D, ELV, ERIC, FFIV, GEHC, GM, HEIA.AS, JDEP.AS, KHC, NOV, UNH, WDAY	energy, financials, global, healthcare, industrials, technology, value	BAB.L UNH JDEP.AS ELV NOV KHC	Global value fund outperformed in volatile Q2 2025 driven by trade policy uncertainty and geopolitical tensions. Technology overweight and healthcare stock selection contributed to 6.91% quarterly return versus 5.38% benchmark. Portfolio emphasizes companies with strong balance sheets and recurring cash flows. Managers maintain disciplined approach targeting undervalued assets with sustainable competitive advantages.
Mar 31 2025	2025 Q1	AIG, BAB.L, CMCSA, CVS, D, ELV, ERIC, FFIV, FIS, GOOGL, HEINY, SHEL, SIE.DE, WDAY, WPP	Europe, global, healthcare, industrials, Outperformance, technology, valuation, value	CVS BAB.L SIE.DE WPP GOOGL WDAY	Hotchkis & Wiley Global Value Fund capitalized on value's dramatic Q1 2025 outperformance, gaining 5.96% while avoiding mega-cap growth declines. European strength and healthcare/industrials stock selection drove results. The portfolio's 9x earnings multiple versus 27x for growth creates compelling opportunity as valuation spreads remain historically wide, positioning for continued value leadership.
Dec 31 2024	2024 Q4	005930.KS, AIG, CMCSA, CVS, ELV, ERIC, FFIV, GM, GOOGL, MDT, SIEGY, WDAY, WPP	global, healthcare, industrials, semiconductors, technology, value	ELV CVS 005930.KS FFIV GM	Global value fund outperformed value benchmark in Q4 despite -3.01% decline amid political and policy uncertainty. Technology remains largest overweight as managers see less cyclical businesses with growth potential. Healthcare holdings pressured by cost inflation but thesis intact. Wide valuation spreads between growth/value and portfolio/benchmark create attractive opportunity set for disciplined value investing.
Sep 30 2024	2024 Q3	005930.KS, AC.PA, CVS, ELV, ERIC, FFIV, GOOGL, MDT, QAN.AX, SIE.DE, WDAY, WLN.PA, WPP	energy, financials, global, semiconductors, technology, Utilities, value	FFIV ERIC QAN.AX 005930.KS WLN.PA GOOGL	Hotchkis & Wiley Global Value Fund underperformed in Q3 2024 due to underweight positions in rate-sensitive sectors that benefited from declining rates and overweight energy exposure amid sector weakness. The managers maintain their disciplined value approach, focusing on durable businesses with attractive valuations while managing risk through selective positioning and anticipating improved energy performance.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Jul 27 2026

2026 Q2

APA, ELV, FFIV, GOOGL, HUM, WDAY

AI, energy, Enterprise Software, global, healthcare, momentum, semiconductors, value

HUM
FFIV
ELV
GOOGL
APA
WDAY

The fund navigated extreme market concentration and momentum by avoiding richly valued AI stocks while capitalizing on overlooked opportunities in enterprise software and healthcare. The manager believes AI disruption fears for mission-critical software are overstated and sees attractive risk/return in defensive sectors left behind in the rally. Healthcare insurers drove outperformance as profitability recovers from cycle lows.

Apr 20 2026

2026 Q1

APA, CRM, ERIC, SLB, WDAY, WPP.L

energy, Geopolitical, global, healthcare, software, value

APA
SLB
ERIC
WDAY
WPP.L
CRM

Global value fund underperformed despite 46% energy gains as software and healthcare overweights detracted. Manager maintains conviction that AI displacement fears for enterprise software are overblown, citing strong retention and switching costs. Energy positioning benefited from geopolitical supply disruptions, reinforcing thesis of structural undersupply. Disciplined approach continues targeting controversial segments with temporary headwinds.

Jan 29 2026

2025 Q4

AIG, BNP.PA, CMCSA, CRM, ELV, ERIC, FFIV, FISV, GEHC, GOOGL, UNH, USB, WBD, WDAY

AI, financials, global, healthcare, software, technology, valuation, value

Hotchkis & Wiley Global Value Fund exploits valuation disparities in concentrated markets, trading at 13x forward earnings versus 23x for MSCI World. The fund increased software exposure viewing AI as tailwind, reduced financials after strong performance, and maintains healthcare overweight. Strong contributors included Alphabet and Warner Bros. Discovery while F5 faced cybersecurity headwinds.

Oct 28 2025

2025 Q3

AIG, CMCSA, D, ELV, ERIC, FFIV, GEHC, GOOGL, HEIA.AS, JDEP.AS, UNH, WBD, WDAY, WPP.L

AI, financials, global, healthcare, Media, technology, value

The Global Value Fund underperformed in Q3 2025 as growth outpaced value amid AI-driven technology leadership and media consolidation trends. Stock selection challenges and financials underweight hurt performance, though technology overweight and strong Alphabet results provided offsets. The manager maintains conviction in longer-term prospects for current detractors including healthcare and telecom holdings.

Jul 27 2025

2025 Q2

AIG, BAB.L, CMCSA, D, ELV, ERIC, FFIV, GEHC, GM, HEIA.AS, JDEP.AS, KHC, NOV, UNH, WDAY

energy, financials, global, healthcare, industrials, technology, value

BAB.L
UNH
JDEP.AS
ELV
NOV
KHC

Global value fund outperformed in volatile Q2 2025 driven by trade policy uncertainty and geopolitical tensions. Technology overweight and healthcare stock selection contributed to 6.91% quarterly return versus 5.38% benchmark. Portfolio emphasizes companies with strong balance sheets and recurring cash flows. Managers maintain disciplined approach targeting undervalued assets with sustainable competitive advantages.

Mar 31 2025

2025 Q1

AIG, BAB.L, CMCSA, CVS, D, ELV, ERIC, FFIV, FIS, GOOGL, HEINY, SHEL, SIE.DE, WDAY, WPP

Europe, global, healthcare, industrials, Outperformance, technology, valuation, value

CVS
BAB.L
SIE.DE
WPP
GOOGL
WDAY

Hotchkis & Wiley Global Value Fund capitalized on value's dramatic Q1 2025 outperformance, gaining 5.96% while avoiding mega-cap growth declines. European strength and healthcare/industrials stock selection drove results. The portfolio's 9x earnings multiple versus 27x for growth creates compelling opportunity as valuation spreads remain historically wide, positioning for continued value leadership.

Dec 31 2024

2024 Q4

005930.KS, AIG, CMCSA, CVS, ELV, ERIC, FFIV, GM, GOOGL, MDT, SIEGY, WDAY, WPP

global, healthcare, industrials, semiconductors, technology, value

ELV
CVS
005930.KS
FFIV
GM

Global value fund outperformed value benchmark in Q4 despite -3.01% decline amid political and policy uncertainty. Technology remains largest overweight as managers see less cyclical businesses with growth potential. Healthcare holdings pressured by cost inflation but thesis intact. Wide valuation spreads between growth/value and portfolio/benchmark create attractive opportunity set for disciplined value investing.

Sep 30 2024

2024 Q3

005930.KS, AC.PA, CVS, ELV, ERIC, FFIV, GOOGL, MDT, QAN.AX, SIE.DE, WDAY, WLN.PA, WPP

energy, financials, global, semiconductors, technology, Utilities, value

FFIV
ERIC
QAN.AX
005930.KS
WLN.PA
GOOGL

Hotchkis & Wiley Global Value Fund underperformed in Q3 2024 due to underweight positions in rate-sensitive sectors that benefited from declining rates and overweight energy exposure amid sector weakness. The managers maintain their disciplined value approach, focusing on durable businesses with attractive valuations while managing risk through selective positioning and anticipating improved energy performance.

QUARTER	THEMES	TAGS
2026 Q2	AI The manager views AI as a powerful tool whose efficacy will increase over time, but believes large pockets of the market overstate both the positive and negative impacts of current AI investments. They express concern about excessive valuations in AI beneficiaries and question the sustainability of earnings growth driven by massive data center capital expenditures, which are on pace to approach $850 billion this year versus $155 billion in 2022, while revenues remain a small fraction of that figure.	Data Centers Semiconductors Cloud Enterprise Software
	Enterprise Software The manager sees enterprise software as an uncommon opportunity in a frothy market, believing AI fears are overstated for mission-critical systems of record. They observe no supporting evidence of disruption in retention rates, margins, or subscription growth, and argue that the disruption thesis significantly underestimates enterprise switching costs and moats. They favor select high-quality businesses with attractive valuations because the market overstates the threat AI poses to them.	SaaS Cloud ERP CRM
	Healthcare Healthcare was the largest positive contributor to performance in the quarter, driven by favorable stock selection in health insurers. The manager has added capital to healthcare in recent years as a defensive market segment that has been left behind and overlooked, exhibiting attractive risk/return prospects. They see increasing evidence of a recovery in profitability for Medicare Advantage and commercial insurers.	Managed Care Health Insurance Medicare Advantage
	Semiconductors The manager was underexposed to semiconductors and other parts of the richly valued AI complex, which posted returns in excess of 100% during the quarter. This underweight positioning was the largest detractor from relative performance. The manager expresses concern about valuations in the semiconductor sector, with select stocks trading at multiples exceeding those of Cisco at the peak of the dot-com bubble.	Chip Designers GPUs Memory Semi Equipment
	Energy The manager maintains exposure to the energy sector through oil and gas E&P companies, viewing them as leveraged to a structurally undersupplied global energy market. They note that these companies generate strong free cash flow in a range of commodity price scenarios, though oil prices retreated during the quarter due to optimism about a resolution to the conflict in Iran.	Oil Exploration & Production Natural Gas
	Momentum The manager highlights that since the market bottomed in early April 2025, stocks in the highest momentum quintile outperformed the market by 54%, while the most fundamentally stable quintile underperformed by 32%. Momentum's current advantage sits in the 99th percentile over the past 70 years, representing a difficult environment for their long-term, fundamental-based investment approach. They note that investor leverage has spiked through margin debt and leveraged ETFs.	Risk Appetite Volatility ETFs
	Value The manager operates a value-oriented strategy focused on high-quality businesses with attractive valuations. They favor companies that have been left behind in the momentum-driven market, including defensive segments like consumer staples and utilities. The median stock in the MSCI World Value index returned just 4.3% in the quarter, with 62% of index constituents underperforming the benchmark's total return, highlighting the challenging environment for value investing.	Quality Dividends Consumer Staples Utilities
2026 Q1	AI Recent AI product releases have raised concerns about potential disruption to enterprise software businesses, causing selloffs in software stocks. However, the manager believes AI creates opportunity rather than risk for well-positioned software businesses with domain expertise, deep integrations, and mission-critical workflows.	Enterprise Software Disruption Technology
	Oil Energy was a bright spot with the manager positioned in upstream energy companies sensitive to commodity prices. The global crude market faces risk of structural undersupply in coming years, supporting higher oil prices over time, with significant supply originating from geopolitically unstable regions.	Energy Geopolitical Risk Supply
	Value Value stocks outperformed growth in the quarter, with the MSCI World Value Index returning +1.3% versus -8.4% for growth. The team remains disciplined and long-term focused, finding lucrative investment ideas in market segments surrounded by near-term controversy that they believe is overstated or misunderstood.	Style Factor Outperformance Contrarian
2025 Q4	Behavioral Biases Manager discusses psychological biases in investing, comparing rational Morning Investor mode versus impulsive Nighttime Investor behavior. Emphasizes the importance of overcoming biases like avoiding action that could cause regret, and building habits to make better decisions.	Psychology Decision Making Biases Discipline
	Value Mature (Value) businesses led performance in Q4 and were the strongest contributors for the full year, reflecting durable execution in companies generating healthy free cash flow and returning capital.	Free Cash Flow Capital Return Mature
	Growth Emerging (Growth) businesses reversed substantial gains in Q4 but delivered strong year overall with significant alpha relative to benchmark. Primary drag in Q4 as these businesses were weak for both the fund and market.	Alpha Emerging Volatility
2025 Q3	AI Artificial intelligence infrastructure spending and structural demand tied to AI drove significant performance in semiconductors and hardware companies. AI capabilities are viewed as key to digital transformation and turnaround plans for companies like WPP.	Infrastructure Semiconductors Hardware Digital transformation
	Media Media and entertainment names delivered notable gains with strong performance from digital advertising trends and media consolidation activities. Warner Bros Discovery benefited from potential takeover speculation by Paramount Skydance.	Entertainment Digital advertising Consolidation Streaming
	Value Growth stocks outperformed value during the quarter as investors favored companies with strong earnings visibility and secular growth drivers during periods of policy and trade-related uncertainty.	Growth Earnings Secular trends Underperformance
2025 Q2	Defense Spending UK and other European countries are investing more in defense spending, benefiting companies like Babcock International which has 60% of revenue from Ministry of Defense contracts. Revenue growth and profitability should continue as defense investment increases.	Defense Government Contracts Europe Military
	Trade Policy Global markets experienced heightened volatility driven by shifting U.S. trade policies under the Trump administration, particularly increased tariffs on Chinese imports. Markets declined sharply in April but recovered as the administration adopted a more conciliatory tone and agreed to principles of a trade deal with China.	Tariffs China Trade Deal Policy Volatility
2025 Q1	Value Value significantly outperformed growth in Q1 2025, with MSCI World Value returning +4.8% versus -7.8% for growth. The valuation spread between growth and value remains wide at 27x vs 15x price to normal earnings, suggesting promising outlook for value investing. The portfolio trades at an attractive 9x price to normal earnings ratio.	Value Growth Valuation Outperformance Spread
	Europe European equities exhibited significant strength with MSCI Europe Index increasing +10.5% versus -4.3% for S&P 500. This represented the largest quarterly outperformance by Europe looking at data going back to 2000. The fund has exposure to European companies including Siemens, Babcock International, and WPP.	Europe Outperformance Regional Strength Allocation
	Healthcare Healthcare was a positive performing sector (+5%) and stock selection in healthcare was one of the largest positive contributors to relative performance. The fund holds positions in CVS Health Corp and Elevance Health Inc, with CVS outperforming on improved earnings and forward guidance.	Healthcare Sector Selection Performance Guidance
2024 Q4	Value The fund maintains a value-oriented approach, noting that value stocks lagged growth for the full year but believing valuation disparities create opportunities for active management. The spread between growth and value indices is wide, suggesting a promising outlook for value investing.	Value Growth Valuation Undervalued Disparities
	Technology Technology remains the largest overweight sector in the portfolio. The managers view their technology businesses as less cyclical than generally perceived and offering attractive diversification. They remain confident in technology holdings' ability to drive economic growth and deliver strong returns.	Technology Semiconductors Software Cloud AI
2024 Q3	Value The fund focuses on identifying undervalued assets with durable balance sheets, sustainable returns on equity, stable free cash flow, and attractive valuations relative to expected earnings. The strategy centers on effective risk management and seeking better risk-adjusted returns.	Undervalued Balance Sheets Returns Valuations Risk Management
	Energy Energy sector experienced decline marking second consecutive quarterly decline. Sentiment in oil and gas stocks reached historic low with hedge funds most bearish since 2020. Portfolio is slightly overweight energy with anticipation of improved performance as economic landscape evolves.	Oil Gas Sentiment Overweight Performance
	Semiconductors Samsung declined due to weakening consumer electronics demand, continued semiconductor industry challenges, and supply chain disruptions. As largest player in three-player DRAM oligopoly with 43% market share, Samsung is positioned for DRAM demand growth driven by AI, cloud computing, and connected devices.	DRAM Memory AI Cloud Oligopoly

QUARTER

THEMES

AI

The manager views AI as a powerful tool whose efficacy will increase over time, but believes large pockets of the market overstate both the positive and negative impacts of current AI investments. They express concern about excessive valuations in AI beneficiaries and question the sustainability of earnings growth driven by massive data center capital expenditures, which are on pace to approach $850 billion this year versus $155 billion in 2022, while revenues remain a small fraction of that figure.

Data Centers Semiconductors Cloud Enterprise Software

Enterprise Software

The manager sees enterprise software as an uncommon opportunity in a frothy market, believing AI fears are overstated for mission-critical systems of record. They observe no supporting evidence of disruption in retention rates, margins, or subscription growth, and argue that the disruption thesis significantly underestimates enterprise switching costs and moats. They favor select high-quality businesses with attractive valuations because the market overstates the threat AI poses to them.

SaaS Cloud ERP CRM

Healthcare

Healthcare was the largest positive contributor to performance in the quarter, driven by favorable stock selection in health insurers. The manager has added capital to healthcare in recent years as a defensive market segment that has been left behind and overlooked, exhibiting attractive risk/return prospects. They see increasing evidence of a recovery in profitability for Medicare Advantage and commercial insurers.

Managed Care Health Insurance Medicare Advantage

Semiconductors

The manager was underexposed to semiconductors and other parts of the richly valued AI complex, which posted returns in excess of 100% during the quarter. This underweight positioning was the largest detractor from relative performance. The manager expresses concern about valuations in the semiconductor sector, with select stocks trading at multiples exceeding those of Cisco at the peak of the dot-com bubble.

Chip Designers GPUs Memory Semi Equipment

Energy

The manager maintains exposure to the energy sector through oil and gas E&P companies, viewing them as leveraged to a structurally undersupplied global energy market. They note that these companies generate strong free cash flow in a range of commodity price scenarios, though oil prices retreated during the quarter due to optimism about a resolution to the conflict in Iran.

Oil Exploration & Production Natural Gas

Momentum

The manager highlights that since the market bottomed in early April 2025, stocks in the highest momentum quintile outperformed the market by 54%, while the most fundamentally stable quintile underperformed by 32%. Momentum's current advantage sits in the 99th percentile over the past 70 years, representing a difficult environment for their long-term, fundamental-based investment approach. They note that investor leverage has spiked through margin debt and leveraged ETFs.

Risk Appetite Volatility ETFs

Value

The manager operates a value-oriented strategy focused on high-quality businesses with attractive valuations. They favor companies that have been left behind in the momentum-driven market, including defensive segments like consumer staples and utilities. The median stock in the MSCI World Value index returned just 4.3% in the quarter, with 62% of index constituents underperforming the benchmark's total return, highlighting the challenging environment for value investing.

Quality Dividends Consumer Staples Utilities

2026 Q1

AI

Recent AI product releases have raised concerns about potential disruption to enterprise software businesses, causing selloffs in software stocks. However, the manager believes AI creates opportunity rather than risk for well-positioned software businesses with domain expertise, deep integrations, and mission-critical workflows.

Enterprise Software Disruption Technology

Oil

Energy was a bright spot with the manager positioned in upstream energy companies sensitive to commodity prices. The global crude market faces risk of structural undersupply in coming years, supporting higher oil prices over time, with significant supply originating from geopolitically unstable regions.

Energy Geopolitical Risk Supply

Value

Value stocks outperformed growth in the quarter, with the MSCI World Value Index returning +1.3% versus -8.4% for growth. The team remains disciplined and long-term focused, finding lucrative investment ideas in market segments surrounded by near-term controversy that they believe is overstated or misunderstood.

Style Factor Outperformance Contrarian

2025 Q4

Behavioral Biases

Manager discusses psychological biases in investing, comparing rational Morning Investor mode versus impulsive Nighttime Investor behavior. Emphasizes the importance of overcoming biases like avoiding action that could cause regret, and building habits to make better decisions.

Psychology Decision Making Biases Discipline

Value

Mature (Value) businesses led performance in Q4 and were the strongest contributors for the full year, reflecting durable execution in companies generating healthy free cash flow and returning capital.

Free Cash Flow Capital Return Mature

Growth

Emerging (Growth) businesses reversed substantial gains in Q4 but delivered strong year overall with significant alpha relative to benchmark. Primary drag in Q4 as these businesses were weak for both the fund and market.

Alpha Emerging Volatility

2025 Q3

AI

Artificial intelligence infrastructure spending and structural demand tied to AI drove significant performance in semiconductors and hardware companies. AI capabilities are viewed as key to digital transformation and turnaround plans for companies like WPP.

Infrastructure Semiconductors Hardware Digital transformation

Media

Media and entertainment names delivered notable gains with strong performance from digital advertising trends and media consolidation activities. Warner Bros Discovery benefited from potential takeover speculation by Paramount Skydance.

Entertainment Digital advertising Consolidation Streaming

Value

Growth stocks outperformed value during the quarter as investors favored companies with strong earnings visibility and secular growth drivers during periods of policy and trade-related uncertainty.

Growth Earnings Secular trends Underperformance

2025 Q2

Defense Spending

UK and other European countries are investing more in defense spending, benefiting companies like Babcock International which has 60% of revenue from Ministry of Defense contracts. Revenue growth and profitability should continue as defense investment increases.

Defense Government Contracts Europe Military

Trade Policy

Global markets experienced heightened volatility driven by shifting U.S. trade policies under the Trump administration, particularly increased tariffs on Chinese imports. Markets declined sharply in April but recovered as the administration adopted a more conciliatory tone and agreed to principles of a trade deal with China.

Tariffs China Trade Deal Policy Volatility

2025 Q1

Value

Value significantly outperformed growth in Q1 2025, with MSCI World Value returning +4.8% versus -7.8% for growth. The valuation spread between growth and value remains wide at 27x vs 15x price to normal earnings, suggesting promising outlook for value investing. The portfolio trades at an attractive 9x price to normal earnings ratio.

Value Growth Valuation Outperformance Spread

Europe

European equities exhibited significant strength with MSCI Europe Index increasing +10.5% versus -4.3% for S&P 500. This represented the largest quarterly outperformance by Europe looking at data going back to 2000. The fund has exposure to European companies including Siemens, Babcock International, and WPP.

Europe Outperformance Regional Strength Allocation

Healthcare

Healthcare was a positive performing sector (+5%) and stock selection in healthcare was one of the largest positive contributors to relative performance. The fund holds positions in CVS Health Corp and Elevance Health Inc, with CVS outperforming on improved earnings and forward guidance.

Healthcare Sector Selection Performance Guidance

2024 Q4

Value

The fund maintains a value-oriented approach, noting that value stocks lagged growth for the full year but believing valuation disparities create opportunities for active management. The spread between growth and value indices is wide, suggesting a promising outlook for value investing.

Value Growth Valuation Undervalued Disparities

Technology

Technology remains the largest overweight sector in the portfolio. The managers view their technology businesses as less cyclical than generally perceived and offering attractive diversification. They remain confident in technology holdings' ability to drive economic growth and deliver strong returns.

Technology Semiconductors Software Cloud AI

2024 Q3

Value

The fund focuses on identifying undervalued assets with durable balance sheets, sustainable returns on equity, stable free cash flow, and attractive valuations relative to expected earnings. The strategy centers on effective risk management and seeking better risk-adjusted returns.

Undervalued Balance Sheets Returns Valuations Risk Management

Energy

Energy sector experienced decline marking second consecutive quarterly decline. Sentiment in oil and gas stocks reached historic low with hedge funds most bearish since 2020. Portfolio is slightly overweight energy with anticipation of improved performance as economic landscape evolves.

Oil Gas Sentiment Overweight Performance

Semiconductors

Samsung declined due to weakening consumer electronics demand, continued semiconductor industry challenges, and supply chain disruptions. As largest player in three-player DRAM oligopoly with 43% market share, Samsung is positioned for DRAM demand growth driven by AI, cloud computing, and connected devices.

DRAM Memory AI Cloud Oligopoly

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Jul 27, 2026	Fund Letters	Hotchkis & Wiley Global Value Fund	HUM	Humana Inc.	Healthcare Plans	Managed Health Care	Bull	New York Stock Exchange	Cyclical Recovery, Earnings Turnaround, health insurance, healthcare, Medicare Advantage, Value	Login
Jul 27, 2026	Fund Letters	Hotchkis & Wiley Global Value Fund	FFIV	F5 Inc.	Software - Infrastructure	Communications Equipment	Bull	NASDAQ	Application Software, data center, IT services, Misunderstood, Network Security, Software, Value	Login
Jul 27, 2026	Fund Letters	Hotchkis & Wiley Global Value Fund	ELV	Elevance Health Inc.	Healthcare Plans	Managed Health Care	Bull	New York Stock Exchange	Above-GDP Growth, capital allocation, Commercial Insurance, Cyclical Recovery, health insurance, healthcare, Value	Login
Jul 27, 2026	Fund Letters	Hotchkis & Wiley Global Value Fund	GOOGL	Alphabet Inc.	Internet Content & Information	Interactive Media & Services	Bull	NASDAQ	Cloud computing, digital advertising, growth, Internet Search, technology, Underweight Position	Login
Jul 27, 2026	Fund Letters	Hotchkis & Wiley Global Value Fund	APA	APA Corp.	Oil & Gas E&P	Oil & Gas Exploration & Production	Bull	NASDAQ	Cyclical, energy, Exploration & Production, Free Cash Flow, Oil & Gas, Permian Basin, Structural Undersupply	Login
Jul 27, 2026	Fund Letters	Hotchkis & Wiley Global Value Fund	WDAY	Workday Inc.	Software - Application	Application Software	Bull	NASDAQ	AI integration, Cloud software, Enterprise software, ERP, Human capital management, Mission-Critical, SaaS, switching costs, Value	Login
Apr 20, 2026	Fund Letters	Hotchkis & Wiley Global Value Fund	APA	APA Corporation	Oil & Gas E&P	Oil, Gas & Consumable Fuels	Bull	NASDAQ	Basis Differentials, E&P, energy, Free Cash Flow, LNG, natural gas, oil, Permian Basin, Upstream	Login
Apr 20, 2026	Fund Letters	Hotchkis & Wiley Global Value Fund	SLB	SLB Limited	Oil & Gas Equipment & Services	Energy Equipment & Services	Bull	New York Stock Exchange	Energy Services, Higher-Margin, International, Offshore, oilfield services, Software, technology	Login
Apr 20, 2026	Fund Letters	Hotchkis & Wiley Global Value Fund	ERIC	Telefonaktiebolaget LM Ericsson	Communication Equipment	Communications Equipment	Bull	NASDAQ	5G, Communications Equipment, infrastructure, Share Buyback, Telecom, turnaround, Wireless Networks	Login
Apr 20, 2026	Fund Letters	Hotchkis & Wiley Global Value Fund	WDAY	Workday Inc	Software - Application	Software	Bull	NASDAQ	Back-Office, Cloud software, Enterprise software, ERP, High retention, Human capital management, SaaS	Login
Apr 20, 2026	Fund Letters	Hotchkis & Wiley Global Value Fund	WPP.L	WPP plc	Advertising Agencies	Advertising	Bull	London Stock Exchange	advertising, Agency, Creative Services, margin expansion, Media Services, Public Relations, turnaround	Login
Apr 20, 2026	Fund Letters	Hotchkis & Wiley Global Value Fund	CRM	Salesforce Inc	Software - Application	Software	Bull	New York Stock Exchange	Cloud software, CRM, cross-selling, Enterprise software, high margins, recurring revenue, SaaS	Login
Jun 30, 2025	Fund Letters	Hotchkis & Wiley Global Value Fund	BAB.L	Babcock International	Industrials	Aerospace & Defense	Bull	London Stock Exchange	Aerospace & Defense, Defense Contractor, Europe, Government Outsourcing, Ministry of Defense, UK	Login
Jun 30, 2025	Fund Letters	Hotchkis & Wiley Global Value Fund	UNH	UnitedHealth Group	Health Care	Health Care Providers & Services	Bull	NYSE	contrarian, health insurance, Healthcare services, Premium Growth Stock, Selloff, US, Value	Login
Jun 30, 2025	Fund Letters	Hotchkis & Wiley Global Value Fund	JDEP.AS	JDE Peet's	Consumer Staples	Food Products	Bull	Euronext Amsterdam	Coffee, Commodity costs, consumer staples, margin expansion, organic growth, Pure-Play, tea	Login
Jun 30, 2025	Fund Letters	Hotchkis & Wiley Global Value Fund	ELV	Elevance Health Inc.	Health Care	Health Care Providers & Services	Bull	NYSE	Discount Valuation, GDP growth, health insurance, Medicaid, Medicare Advantage, shareholder returns, Temporary Headwinds	Login
Jun 30, 2025	Fund Letters	Hotchkis & Wiley Global Value Fund	NOV	NOV Inc.	Energy	Energy Equipment & Services	Bull	NYSE	Cyclical Recovery, Drilling Activity, Energy Prices, Energy Services, Newbuild Cycle, Oilfield Equipment, Rig Aftermarket	Login
Jun 30, 2025	Fund Letters	Hotchkis & Wiley Global Value Fund	KHC	Kraft Heinz	Consumer Staples	Food Products	Bull	NASDAQ	Bolt-on Acquisitions, consumer staples, defensive, dividend yield, EPS growth, Food & Beverage, share repurchases	Login
Mar 31, 2025	Fund Letters	Hotchkis & Wiley Global Value Fund	CVS	CVS Health Corp.	Health Care	Health Care Services	Bull	NYSE	debt reduction, health insurance, Healthcare services, margin expansion, Pharmacy Benefits Manager, Retail Pharmacy, turnaround	Login
Mar 31, 2025	Fund Letters	Hotchkis & Wiley Global Value Fund	BAB.L	Babcock International	Industrials	Aerospace & Defense	Bull	LSE	Aerospace & Defense, Defense spending, Europe, Government Contractor, Ministry of Defense, Revenue Growth, UK	Login
Mar 31, 2025	Fund Letters	Hotchkis & Wiley Global Value Fund	SIE.DE	Siemens AG	Industrials	Electrical Equipment	Bull	XETRA	conglomerate, conglomerate discount, electrical equipment, Germany, Healthcare Technology, Industrial automation, infrastructure, Value	Login
Mar 31, 2025	Fund Letters	Hotchkis & Wiley Global Value Fund	WPP	WPP plc	Communication Services	Advertising	Bull	LSE	advertising, asset-light, capital return, low valuation, Marketing Services, organic growth, UK	Login
Mar 31, 2025	Fund Letters	Hotchkis & Wiley Global Value Fund	GOOGL	Alphabet Inc.	Communication Services	Interactive Media & Services	Bull	NASDAQ	Cloud computing, digital advertising, growth potential, Other Bets, Overcapitalized, search engine, technology	Login
Mar 31, 2025	Fund Letters	Hotchkis & Wiley Global Value Fund	WDAY	Workday, Inc.	Information Technology	Application Software	Bull	NASDAQ	Cloud software, Competitive Advantage, Enterprise software, ERP, Human capital management, Premier Franchise, SaaS	Login
Dec 31, 2024	Fund Letters	Hotchkis & Wiley Global Value Fund	ELV	Elevance Health	Health Care	Health Care Providers & Services	Bull	NYSE	Commercial Insurer, growth, health insurance, Healthcare services, Margins, Medical Spending, undervalued	Login
Dec 31, 2024	Fund Letters	Hotchkis & Wiley Global Value Fund	CVS	CVS Health Corp	Health Care	Health Care Providers & Services	Bull	NYSE	Aetna, Annual Repricing, Diversified Healthcare, health insurance, Margin recovery, Pharmacy Benefits Manager, Retail Pharmacy	Login
Dec 31, 2024	Fund Letters	Hotchkis & Wiley Global Value Fund	005930.KS	Samsung	Information Technology	Technology Hardware, Storage & Peripherals	Bull	Korea Stock Exchange	AI, Cloud computing, consumer electronics, DRAM, market share, Memory, oligopoly, semiconductors, technology hardware	Login
Dec 31, 2024	Fund Letters	Hotchkis & Wiley Global Value Fund	FFIV	F5	Information Technology	Communications Equipment	Bull	NASDAQ	Application Networking, data center, debt-free, Gross margin, operating leverage, Security Software, Subscription Software	Login
Dec 31, 2024	Fund Letters	Hotchkis & Wiley Global Value Fund	GM	General Motors Co	Consumer Discretionary	Automobiles	Bull	NYSE	Automobiles, Electric Vehicles, Extremely Attractive Valuation, Free Cash Flow, market leadership, share repurchases, SUVs, trucks	Login
Sep 30, 2024	Fund Letters	Hotchkis & Wiley Global Value Fund	FFIV	F5 Inc.	Information Technology	Communications Equipment	Bull	NASDAQ	Application Networking, data center, debt-free, SaaS, Security Software, Subscription Software, technology	Login
Sep 30, 2024	Fund Letters	Hotchkis & Wiley Global Value Fund	ERIC	Ericsson	Information Technology	Communications Equipment	Bull	NASDAQ	5G infrastructure, Hardware, market leader, North America, Software, telecommunications, Wireless Networks	Login
Sep 30, 2024	Fund Letters	Hotchkis & Wiley Global Value Fund	QAN.AX	Qantas Airways Limited	Industrials	Airlines	Bull	ASX	Airlines, Australia, Aviation, capital return, cash flow, duopoly, Share Buybacks	Login
Sep 30, 2024	Fund Letters	Hotchkis & Wiley Global Value Fund	005930.KS	Samsung Electronics Co., Ltd.	Information Technology	Technology Hardware, Storage & Peripherals	Bull	Korea Stock Exchange	AI, Cloud computing, consumer electronics, DRAM, Memory, oligopoly, semiconductors, South Korea	Login
Sep 30, 2024	Fund Letters	Hotchkis & Wiley Global Value Fund	WLN.PA	Worldline SA	Information Technology	Data Processing & Outsourced Services	Bear	Euronext Paris	Competitive pressure, Europe, Fintech, Germany, payment processing, regulatory headwinds, Transaction Services	Login
Sep 30, 2024	Fund Letters	Hotchkis & Wiley Global Value Fund	GOOGL	Alphabet Inc.	Communication Services	Interactive Media & Services	Bull	NASDAQ	Cloud computing, digital advertising, growth potential, media, regulatory scrutiny, search engine, technology	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Jul 27, 2026

Fund Letters

Hotchkis & Wiley Global Value Fund

HUM

Humana Inc.

Healthcare Plans

Managed Health Care

Bull

New York Stock Exchange

Cyclical Recovery, Earnings Turnaround, health insurance, healthcare, Medicare Advantage, Value

Jul 27, 2026

Fund Letters

Hotchkis & Wiley Global Value Fund

FFIV

F5 Inc.

Software - Infrastructure

Communications Equipment

Bull

NASDAQ

Application Software, data center, IT services, Misunderstood, Network Security, Software, Value

Jul 27, 2026

Fund Letters

Hotchkis & Wiley Global Value Fund

ELV

Elevance Health Inc.

Healthcare Plans

Managed Health Care

Bull

New York Stock Exchange

Above-GDP Growth, capital allocation, Commercial Insurance, Cyclical Recovery, health insurance, healthcare, Value

Jul 27, 2026

Fund Letters

Hotchkis & Wiley Global Value Fund

GOOGL

Alphabet Inc.

Internet Content & Information

Interactive Media & Services

Bull

NASDAQ

Cloud computing, digital advertising, growth, Internet Search, technology, Underweight Position

Jul 27, 2026

Fund Letters

Hotchkis & Wiley Global Value Fund

APA

APA Corp.

Oil & Gas E&P

Oil & Gas Exploration & Production

Bull

NASDAQ

Cyclical, energy, Exploration & Production, Free Cash Flow, Oil & Gas, Permian Basin, Structural Undersupply

Jul 27, 2026

Fund Letters

Hotchkis & Wiley Global Value Fund

WDAY

Workday Inc.

Software - Application

Application Software

Bull

NASDAQ

AI integration, Cloud software, Enterprise software, ERP, Human capital management, Mission-Critical, SaaS, switching costs, Value

Apr 20, 2026

Fund Letters

Hotchkis & Wiley Global Value Fund

APA

APA Corporation

Oil & Gas E&P

Oil, Gas & Consumable Fuels

Bull

NASDAQ

Basis Differentials, E&P, energy, Free Cash Flow, LNG, natural gas, oil, Permian Basin, Upstream

Apr 20, 2026

Fund Letters

Hotchkis & Wiley Global Value Fund

SLB

SLB Limited

Oil & Gas Equipment & Services

Energy Equipment & Services

Bull

New York Stock Exchange

Energy Services, Higher-Margin, International, Offshore, oilfield services, Software, technology

Apr 20, 2026

Fund Letters

Hotchkis & Wiley Global Value Fund

ERIC

Telefonaktiebolaget LM Ericsson

Communication Equipment

Communications Equipment

Bull

NASDAQ

5G, Communications Equipment, infrastructure, Share Buyback, Telecom, turnaround, Wireless Networks

Apr 20, 2026

Fund Letters

Hotchkis & Wiley Global Value Fund

WDAY

Workday Inc

Software - Application

Software

Bull

NASDAQ

Back-Office, Cloud software, Enterprise software, ERP, High retention, Human capital management, SaaS

Apr 20, 2026

Fund Letters

Hotchkis & Wiley Global Value Fund

WPP.L

WPP plc

Advertising Agencies

Advertising

Bull

London Stock Exchange

advertising, Agency, Creative Services, margin expansion, Media Services, Public Relations, turnaround

Apr 20, 2026

Fund Letters

Hotchkis & Wiley Global Value Fund

CRM

Salesforce Inc

Software - Application

Software

Bull

New York Stock Exchange

Cloud software, CRM, cross-selling, Enterprise software, high margins, recurring revenue, SaaS

Jun 30, 2025

Fund Letters

Hotchkis & Wiley Global Value Fund

BAB.L

Babcock International

Industrials

Aerospace & Defense

Bull

London Stock Exchange

Aerospace & Defense, Defense Contractor, Europe, Government Outsourcing, Ministry of Defense, UK

Jun 30, 2025

Fund Letters

Hotchkis & Wiley Global Value Fund

UNH

UnitedHealth Group

Health Care

Health Care Providers & Services

Bull

NYSE

contrarian, health insurance, Healthcare services, Premium Growth Stock, Selloff, US, Value

Jun 30, 2025

Fund Letters

Hotchkis & Wiley Global Value Fund

JDEP.AS

JDE Peet's

Consumer Staples

Food Products

Bull

Euronext Amsterdam

Coffee, Commodity costs, consumer staples, margin expansion, organic growth, Pure-Play, tea

Jun 30, 2025

Fund Letters

Hotchkis & Wiley Global Value Fund

ELV

Elevance Health Inc.

Health Care

Health Care Providers & Services

Bull

NYSE

Discount Valuation, GDP growth, health insurance, Medicaid, Medicare Advantage, shareholder returns, Temporary Headwinds

Jun 30, 2025

Fund Letters

Hotchkis & Wiley Global Value Fund

NOV

NOV Inc.

Energy

Energy Equipment & Services

Bull

NYSE

Cyclical Recovery, Drilling Activity, Energy Prices, Energy Services, Newbuild Cycle, Oilfield Equipment, Rig Aftermarket

Jun 30, 2025

Fund Letters

Hotchkis & Wiley Global Value Fund

KHC

Kraft Heinz

Consumer Staples

Food Products

Bull

NASDAQ

Bolt-on Acquisitions, consumer staples, defensive, dividend yield, EPS growth, Food & Beverage, share repurchases

Mar 31, 2025

Fund Letters

Hotchkis & Wiley Global Value Fund

CVS

CVS Health Corp.

Health Care

Health Care Services

Bull

NYSE

debt reduction, health insurance, Healthcare services, margin expansion, Pharmacy Benefits Manager, Retail Pharmacy, turnaround

Mar 31, 2025

Fund Letters

Hotchkis & Wiley Global Value Fund

BAB.L

Babcock International

Industrials

Aerospace & Defense

Bull

LSE

Aerospace & Defense, Defense spending, Europe, Government Contractor, Ministry of Defense, Revenue Growth, UK

Mar 31, 2025

Fund Letters

Hotchkis & Wiley Global Value Fund

SIE.DE

Siemens AG

Industrials

Electrical Equipment

Bull

XETRA

conglomerate, conglomerate discount, electrical equipment, Germany, Healthcare Technology, Industrial automation, infrastructure, Value

Mar 31, 2025

Fund Letters

Hotchkis & Wiley Global Value Fund

WPP

WPP plc

Communication Services

Advertising

Bull

LSE

advertising, asset-light, capital return, low valuation, Marketing Services, organic growth, UK

Mar 31, 2025

Fund Letters

Hotchkis & Wiley Global Value Fund

GOOGL

Alphabet Inc.

Communication Services

Interactive Media & Services

Bull

NASDAQ

Cloud computing, digital advertising, growth potential, Other Bets, Overcapitalized, search engine, technology

Mar 31, 2025

Fund Letters

Hotchkis & Wiley Global Value Fund

WDAY

Workday, Inc.

Information Technology

Application Software

Bull

NASDAQ

Cloud software, Competitive Advantage, Enterprise software, ERP, Human capital management, Premier Franchise, SaaS

Dec 31, 2024

Fund Letters

Hotchkis & Wiley Global Value Fund

ELV

Elevance Health

Health Care

Health Care Providers & Services

Bull

NYSE

Commercial Insurer, growth, health insurance, Healthcare services, Margins, Medical Spending, undervalued

Dec 31, 2024

Fund Letters

Hotchkis & Wiley Global Value Fund

CVS

CVS Health Corp

Health Care

Health Care Providers & Services

Bull

NYSE

Aetna, Annual Repricing, Diversified Healthcare, health insurance, Margin recovery, Pharmacy Benefits Manager, Retail Pharmacy

Dec 31, 2024

Fund Letters

Hotchkis & Wiley Global Value Fund

005930.KS

Samsung

Information Technology

Technology Hardware, Storage & Peripherals

Bull

Korea Stock Exchange

AI, Cloud computing, consumer electronics, DRAM, market share, Memory, oligopoly, semiconductors, technology hardware

Dec 31, 2024

Fund Letters

Hotchkis & Wiley Global Value Fund

FFIV

Information Technology

Communications Equipment

Bull

NASDAQ

Application Networking, data center, debt-free, Gross margin, operating leverage, Security Software, Subscription Software

Dec 31, 2024

Fund Letters

Hotchkis & Wiley Global Value Fund

General Motors Co

Consumer Discretionary

Automobiles

Bull

NYSE

Automobiles, Electric Vehicles, Extremely Attractive Valuation, Free Cash Flow, market leadership, share repurchases, SUVs, trucks

Sep 30, 2024

Fund Letters

Hotchkis & Wiley Global Value Fund

FFIV

F5 Inc.

Information Technology

Communications Equipment

Bull

NASDAQ

Application Networking, data center, debt-free, SaaS, Security Software, Subscription Software, technology

Sep 30, 2024

Fund Letters

Hotchkis & Wiley Global Value Fund

ERIC

Ericsson

Information Technology

Communications Equipment

Bull

NASDAQ

5G infrastructure, Hardware, market leader, North America, Software, telecommunications, Wireless Networks

Sep 30, 2024

Fund Letters

Hotchkis & Wiley Global Value Fund

QAN.AX

Qantas Airways Limited

Industrials

Airlines

Bull

ASX

Airlines, Australia, Aviation, capital return, cash flow, duopoly, Share Buybacks

Sep 30, 2024

Fund Letters

Hotchkis & Wiley Global Value Fund

005930.KS

Samsung Electronics Co., Ltd.

Information Technology

Technology Hardware, Storage & Peripherals

Bull

Korea Stock Exchange

AI, Cloud computing, consumer electronics, DRAM, Memory, oligopoly, semiconductors, South Korea

Sep 30, 2024

Fund Letters

Hotchkis & Wiley Global Value Fund

WLN.PA

Worldline SA

Information Technology

Data Processing & Outsourced Services

Bear

Euronext Paris

Competitive pressure, Europe, Fintech, Germany, payment processing, regulatory headwinds, Transaction Services

Sep 30, 2024

Fund Letters

Hotchkis & Wiley Global Value Fund

GOOGL

Alphabet Inc.

Communication Services

Interactive Media & Services

Bull

NASDAQ

Cloud computing, digital advertising, growth potential, media, regulatory scrutiny, search engine, technology

TICKER	COMMENTARY
HUM	Humana Inc. (HUM) is one of the largest Medicare Advantage (MA) health insurers in the United States. The stock performed well as investors increasingly price in the likelihood that earnings have reached a cycle bottom and will soon start to grow again.
FFIV	F5 Inc. (FFIV) sells application networking and security software as well as data center appliances. The company posted good quarterly results and raised both its revenue and EPS guidance. The company is misunderstood and gets incorrectly classified as a legacy IT hardware vendor, resulting in an attractive valuation for a company with better-than-average fundamental risk ratings.
ELV	Elevance Health Inc. (ELV) is the second largest health insurer, and one of the largest commercial insurers in the United States. Similar to Humana, shares rose because investors see increasing evidence of a recovery in profitability. Despite the recent move, the company remains priced at a discount to the market despite being a compelling business that grows above GDP while returning most of its cash to shareholders.
GOOGL	Alphabet Inc. (GOOGL) is a holding company whose primary subsidiary is Google, whose Search business makes it one of the largest advertising companies in the world. Alphabet's other businesses are its enterprise cloud platform and venture-stage companies collectively reported as 'Other Bets.' We believe Alphabet's valuation remain good given its improving growth prospects. Although the stock rose during the quarter, it detracted from relative performance because we were underweight compared to the benchmark. Our investment thesis remains intact.
APA	APA Corp. (APA) is an independent oil and gas E&P (exploration & production) company operating in the Permian and in Egypt. Quarterly results were in line with expectations and supportive of our investment thesis, but the stock fell as oil retreated due to optimism about a resolution to the conflict in Iran. What really excites us about APA is that it remains leveraged to a structurally undersupplied global energy market. That said, the Company generates strong free cash flow in a range of commodity price scenarios.
WDAY	Workday Inc. (WDAY) is a leader in cloud software for back-office business functions, spanning human capital management (HCM), financial management, and adjacent ERP (enterprise resource planning) products, with 60% of the Fortune 500 as HCM customers. Shares declined over the period, pressured by investor concerns that AI could disrupt application software vendors. The most recent quarter, however, did not show evidence of this. Subscription revenue grew 14%, 12-month backlog grew 16%, retention remained industry leading, margins expanded, and management reiterated full-year subscription revenue guidance while raising operating margin guidance. AI adoption also appears to be progressing, with Workday-developed agents now used by more than 4,000 customers and Recruiting Agent activity up sharply year over year. We continue to believe the disruption thesis significantly underestimates enterprise switching costs and the non-code moat that makes Workday durable.

TICKER

COMMENTARY

HUM

Humana Inc. (HUM) is one of the largest Medicare Advantage (MA) health insurers in the United States. The stock performed well as investors increasingly price in the likelihood that earnings have reached a cycle bottom and will soon start to grow again.

FFIV

F5 Inc. (FFIV) sells application networking and security software as well as data center appliances. The company posted good quarterly results and raised both its revenue and EPS guidance. The company is misunderstood and gets incorrectly classified as a legacy IT hardware vendor, resulting in an attractive valuation for a company with better-than-average fundamental risk ratings.

ELV

Elevance Health Inc. (ELV) is the second largest health insurer, and one of the largest commercial insurers in the United States. Similar to Humana, shares rose because investors see increasing evidence of a recovery in profitability. Despite the recent move, the company remains priced at a discount to the market despite being a compelling business that grows above GDP while returning most of its cash to shareholders.

GOOGL

Alphabet Inc. (GOOGL) is a holding company whose primary subsidiary is Google, whose Search business makes it one of the largest advertising companies in the world. Alphabet's other businesses are its enterprise cloud platform and venture-stage companies collectively reported as 'Other Bets.' We believe Alphabet's valuation remain good given its improving growth prospects. Although the stock rose during the quarter, it detracted from relative performance because we were underweight compared to the benchmark. Our investment thesis remains intact.

APA

APA Corp. (APA) is an independent oil and gas E&P (exploration & production) company operating in the Permian and in Egypt. Quarterly results were in line with expectations and supportive of our investment thesis, but the stock fell as oil retreated due to optimism about a resolution to the conflict in Iran. What really excites us about APA is that it remains leveraged to a structurally undersupplied global energy market. That said, the Company generates strong free cash flow in a range of commodity price scenarios.

WDAY

Workday Inc. (WDAY) is a leader in cloud software for back-office business functions, spanning human capital management (HCM), financial management, and adjacent ERP (enterprise resource planning) products, with 60% of the Fortune 500 as HCM customers. Shares declined over the period, pressured by investor concerns that AI could disrupt application software vendors. The most recent quarter, however, did not show evidence of this. Subscription revenue grew 14%, 12-month backlog grew 16%, retention remained industry leading, margins expanded, and management reiterated full-year subscription revenue guidance while raising operating margin guidance. AI adoption also appears to be progressing, with Workday-developed agents now used by more than 4,000 customers and Recruiting Agent activity up sharply year over year. We continue to believe the disruption thesis significantly underestimates enterprise switching costs and the non-code moat that makes Workday durable.

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Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 30th June 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

AI

Enterprise Software

Healthcare

Semiconductors

Energy

Momentum

Value

AI

Oil

Value

Behavioral Biases

Value

Growth

AI

Media

Value

Defense Spending

Trade Policy

Value

Europe

Healthcare

Value

Technology

Value

Energy

Semiconductors

Investor Pitches

Current Portfolio as of ( 30th June 2026 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

Scott Rosenthal Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

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Hotchkis & Wiley Global Value Fund