Hotchkis & Wiley Large Cap Fundamental Value

Investor Summary

The fund is managed by an experienced four-person portfolio management team with an average tenure of 23.1 years. George H. Davis Jr. serves as Executive Chairman with 37 years at Hotchkis & Wiley and 41 years of total industry experience, holding degrees from Stanford University. Scott McBride, CFA, functions as CEO and portfolio manager, joining in 2001 with expertise in technology companies and degrees from Georgetown and Columbia universities. Patricia McKenna serves as Principal and portfolio manager since 1995 with over 26 years of tenure and CFA designation, providing expertise in consumer and healthcare sectors. Douglas Campbell was added as portfolio manager in 2024, expanding the team's capabilities. The vast majority of the investment team owns equity in the firm, aligning their interests with those of clients.

Fund Strategy

The Large Cap Fundamental Value strategy represents Hotchkis & Wiley's founding investment approach, having invested in undervalued large-cap stocks for over 45 years. The firm employs disciplined investment strategies that primarily rely on in-house fundamental security research with the goal of providing clients with portfolios offering attractive risk-adjusted returns relative to specified benchmarks. The investment process emphasizes long-term thinking about company valuations, focusing on price and what investors receive for that price in terms of earnings, cash flow, and dividends. The team uses discounted cash flow models anchored on normalized earnings and seeks to build a portfolio of 40-60 stocks that offers a payout yield exceeding that of the S&P 500 while trading with a P/E ratio below the market average. The approach targets companies with strong market positions, robust balance sheets, and significant cash flow generation capabilities.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
8.6%	0.23%	0.23%

Executive Summary

Hotchkis & Wiley's Large Cap Disciplined Value Fund returned 0.23% in Q1 2026, underperforming the Russell 1000 Value Index's 2.10% return. Geopolitical turmoil from U.S.-Israel strikes on Iran and the Strait of Hormuz closure drove oil prices above $127/barrel, benefiting the portfolio's overweight energy position which returned 49% collectively. However, software holdings were the largest detractor as AI disruption concerns pressured enterprise software stocks despite strong fundamentals. The manager views this selloff as overstated, citing companies like Workday and Salesforce's competitive advantages through domain expertise and deep customer integrations. Health insurers also detracted due to Medicare Advantage reimbursement uncertainty and higher utilization rates, which management believes are temporary rather than structural issues. The team maintains conviction in their contrarian approach, seeking opportunities in segments facing near-term controversy. They believe global crude markets face structural undersupply risks supporting higher oil prices, while enterprise software businesses remain well-positioned to monetize AI rather than be displaced by it.

Core Thesis

Value investing approach focused on finding opportunities in market segments surrounded by near-term controversy that is overstated or misunderstood, with particular conviction in energy's structural undersupply dynamics and enterprise software's defensible competitive advantages despite AI disruption concerns.

Forward Outlook

The manager remains disciplined and long-term focused, often finding the most lucrative investment ideas in market segments surrounded by near-term controversy that they believe is overstated or misunderstood. The portfolio remains appropriately diversified but reflects strong conviction in attractive themes.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Apr 20 2026	2026 Q1	AIG, APA, CRM, FDX, OVV, WDAY	AI, energy, Geopolitical Risk, Health Insurance, large cap, software, value	APA OVV FDX WDAY CRM AIG	Value manager underperformed in Q1 as geopolitical oil shock benefited energy overweight but software holdings suffered from AI disruption fears. Manager views software selloff as opportunity, not risk, citing defensive moats of enterprise platforms. Maintains contrarian conviction in energy's structural undersupply dynamics and enterprise software's ability to monetize rather than be displaced by AI.
Jan 29 2026	2025 Q4	AIG, APA, C, CMCSA, CRM, CRWD, CVS, ERIC, FDX, FFIV, FISV, GM, NFLX, PLTR, UNH, WBD, WDAY, WPP	banks, energy, financials, healthcare, large cap, software, valuation, value	-	Value-focused fund outperformed in Q4 by targeting undervalued quality businesses outside expensive market leaders. Portfolio trades at 13x forward earnings versus market's 26x. Strong performance from software, banking, and healthcare positions. Manager increased software exposure through Workday and Salesforce purchases. Optimistic on positioning despite elevated market valuations concentrated in Magnificent 7 stocks.
Oct 28 2025	2025 Q3	AIG, APA, C, CMCSA, ELV, ERIC, FFIV, GEHC, GM, GOOGL, WBD, WDAY, WPP.L	energy, financials, large cap, Quality, technology, value	-	Hotchkis & Wiley's Large Cap Value fund outperformed in Q3 while trading at 13x earnings versus the S&P 500's 25x multiple. The manager improved portfolio quality through disciplined stock selection, reducing financials exposure. Despite market headwinds from narrow leadership and elevated valuations, the fund maintains attractive risk-return characteristics compared to overvalued passive alternatives.
Jul 27 2025	2025 Q2	AIG, APA, C, CMCSA, D, ERIC, FFIV, GM, KHC, NOV, UNH, WDAY, WFC	AI, energy, financials, healthcare, large cap, Quality, technology, value	UNH C FFIV APA NOV KHC	Hotchkis & Wiley's Large Cap Value Fund navigated extreme Q2 volatility with disciplined stock selection, adding UnitedHealth after its 50% decline while maintaining energy exposure despite sector headwinds. The fund's value approach positions it to benefit from the growing valuation gap between momentum-driven growth stocks and quality value opportunities trading at reasonable multiples.
Mar 31 2025	2025 Q1	AIG, APA, C, CMCSA, CVS, D, ELV, ERIC, FFIV, GM, GOOGL, MGA.TO, OLN, WFC	earnings, healthcare, large cap, Quality, valuation, value	-	Hotchkis & Wiley's Large Cap Value fund outperformed in Q1 2025 driven by strong healthcare stock selection. The portfolio trades at 8x normal earnings versus 17x for the Russell 1000 Value benchmark. Managers see parallels to early 2000s market conditions and expect fundamentals to drive performance, favoring their value approach over growth stocks.
Dec 31 2024	2024 Q4	APA, C, CMCSA, CVS, ELV, ERIC, FFIV, GM, MDT, OLN, WFC	Defensive, financials, healthcare, large cap, valuation, value	FFIV GM WFC ELV CVS OLN	Value fund underperformed in Q4 as growth continued dominating, but maintains disciplined approach with portfolio trading near historical averages despite expensive broader market. Trimmed outperforming financials while adding defensive exposure. Strong stock selection in technology and financials offset healthcare weakness. Remains patient seeking risk-adjusted opportunities in challenging value environment.
Sep 30 2024	2024 Q3	APA, ERIC, FFIV, GM, NOV, UL	Defensive, energy, financials, healthcare, large cap, value	FFIV ERIC UL APA NOV GM	Concentrated value strategy with 90%+ active share underperformed in Q3 due to energy exposure amid oil price decline. Manager increased defensive sector allocation while maintaining large financials overweight at attractive valuations. Despite broad market trading at elevated multiples, portfolio's value orientation and avoidance of expensive mega-caps positions it well for future outperformance.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Apr 20 2026

2026 Q1

AIG, APA, CRM, FDX, OVV, WDAY

AI, energy, Geopolitical Risk, Health Insurance, large cap, software, value

APA
OVV
FDX
WDAY
CRM
AIG

Value manager underperformed in Q1 as geopolitical oil shock benefited energy overweight but software holdings suffered from AI disruption fears. Manager views software selloff as opportunity, not risk, citing defensive moats of enterprise platforms. Maintains contrarian conviction in energy's structural undersupply dynamics and enterprise software's ability to monetize rather than be displaced by AI.

Jan 29 2026

2025 Q4

AIG, APA, C, CMCSA, CRM, CRWD, CVS, ERIC, FDX, FFIV, FISV, GM, NFLX, PLTR, UNH, WBD, WDAY, WPP

banks, energy, financials, healthcare, large cap, software, valuation, value

Value-focused fund outperformed in Q4 by targeting undervalued quality businesses outside expensive market leaders. Portfolio trades at 13x forward earnings versus market's 26x. Strong performance from software, banking, and healthcare positions. Manager increased software exposure through Workday and Salesforce purchases. Optimistic on positioning despite elevated market valuations concentrated in Magnificent 7 stocks.

Oct 28 2025

2025 Q3

AIG, APA, C, CMCSA, ELV, ERIC, FFIV, GEHC, GM, GOOGL, WBD, WDAY, WPP.L

energy, financials, large cap, Quality, technology, value

Hotchkis & Wiley's Large Cap Value fund outperformed in Q3 while trading at 13x earnings versus the S&P 500's 25x multiple. The manager improved portfolio quality through disciplined stock selection, reducing financials exposure. Despite market headwinds from narrow leadership and elevated valuations, the fund maintains attractive risk-return characteristics compared to overvalued passive alternatives.

Jul 27 2025

2025 Q2

AIG, APA, C, CMCSA, D, ERIC, FFIV, GM, KHC, NOV, UNH, WDAY, WFC

AI, energy, financials, healthcare, large cap, Quality, technology, value

UNH
C
FFIV
APA
NOV
KHC

Hotchkis & Wiley's Large Cap Value Fund navigated extreme Q2 volatility with disciplined stock selection, adding UnitedHealth after its 50% decline while maintaining energy exposure despite sector headwinds. The fund's value approach positions it to benefit from the growing valuation gap between momentum-driven growth stocks and quality value opportunities trading at reasonable multiples.

Mar 31 2025

2025 Q1

AIG, APA, C, CMCSA, CVS, D, ELV, ERIC, FFIV, GM, GOOGL, MGA.TO, OLN, WFC

earnings, healthcare, large cap, Quality, valuation, value

Hotchkis & Wiley's Large Cap Value fund outperformed in Q1 2025 driven by strong healthcare stock selection. The portfolio trades at 8x normal earnings versus 17x for the Russell 1000 Value benchmark. Managers see parallels to early 2000s market conditions and expect fundamentals to drive performance, favoring their value approach over growth stocks.

Dec 31 2024

2024 Q4

APA, C, CMCSA, CVS, ELV, ERIC, FFIV, GM, MDT, OLN, WFC

Defensive, financials, healthcare, large cap, valuation, value

FFIV
GM
WFC
ELV
CVS
OLN

Value fund underperformed in Q4 as growth continued dominating, but maintains disciplined approach with portfolio trading near historical averages despite expensive broader market. Trimmed outperforming financials while adding defensive exposure. Strong stock selection in technology and financials offset healthcare weakness. Remains patient seeking risk-adjusted opportunities in challenging value environment.

Sep 30 2024

2024 Q3

APA, ERIC, FFIV, GM, NOV, UL

Defensive, energy, financials, healthcare, large cap, value

FFIV
ERIC
UL
APA
NOV
GM

Concentrated value strategy with 90%+ active share underperformed in Q3 due to energy exposure amid oil price decline. Manager increased defensive sector allocation while maintaining large financials overweight at attractive valuations. Despite broad market trading at elevated multiples, portfolio's value orientation and avoidance of expensive mega-caps positions it well for future outperformance.

QUARTER	THEMES	TAGS
2026 Q1	Oil Energy was the primary bright spot with the portfolio's overweight position providing an effective hedge during geopolitical turmoil. The manager believes the global crude market faces a risk of structural undersupply in coming years, supporting higher oil prices over time, with significant supply originating from geopolitically unstable regions.	Crude Oil Geopolitical Risk Supply Disruption Energy Brent
	Enterprise Software Recent AI product releases have raised concerns about potential disruption to enterprise software businesses, causing a selloff. However, the manager believes this reaction is overstated and presents opportunity rather than risk, as companies like Workday and Salesforce have competitive advantages rooted in domain expertise and deep integrations.	Software AI Disruption SaaS Enterprise Cloud
	AI AI-driven investment themes were primary market drivers in the quarter. Recent AI product releases, including Anthropic's legal and finance automation tools, have raised market concerns about disruption to traditional software businesses, though the manager views this as creating opportunity rather than representing genuine displacement risk.	Artificial Intelligence Automation Disruption Technology Claude
	Managed Care Health insurers underperformed during the quarter due to policy uncertainty around Medicare Advantage reimbursement rates and higher than expected utilization rates. The manager believes the market is incorrectly discounting these earnings pressures as structural rather than temporary, with management teams focused on margin recovery through pricing adjustments.	Health Insurance Medicare Advantage Utilization Reimbursement Pricing
2025 Q4	AI AI infrastructure buildout continues to drive strong earnings growth for portfolio companies. Draft One AI tool for police reports shows material time savings and represents fastest booked Axon product to date. AI Era Plan expanding software value per officer through embedded AI workflows.	AI Infrastructure Draft One AI Era Plan LLMs Automation
	Semiconductors Portfolio includes major semiconductor positions in NVIDIA, Broadcom, and ASML. AI servers require greater connector content versus traditional servers. Semiconductor companies showing strong earnings growth despite cyclical industry nature.	NVIDIA Broadcom ASML AI Servers Interconnects
	Software Software segment showing strong growth with companies like ServiceNow, Intuit, and Synopsys. AI creating new monetization opportunities through embedded workflows. Software revenue percentage expansion drives margin improvement.	SaaS ServiceNow Intuit Synopsys AI Workflows
	Data Centers Projected incremental 100GW of data center capacity necessary through 2030 creates large opportunity. AI data centers drive structurally higher interconnect content with dense GPU racks requiring more high-speed connections.	Data Center Capacity GPU Racks Interconnects Infrastructure
2025 Q3	Value The portfolio trades at less than 13x consensus earnings and a little more than 9x normal earnings, in line with its historical average despite the broad market's elevated valuation. The manager emphasizes attractive valuation opportunities in segments of the equity market while noting the S&P 500 is fully valued or overvalued at 25x next year's consensus estimates.	Valuation Undervalued Earnings Multiple Discount
	Quality The portfolio exhibits attractive and improving risk characteristics with meaningful improvement in balance sheet and quality ratings. The 5 largest stock purchases had average Fundamental Risk Ratings of 1.4, 1.6, and 2.4 for Balance Sheet, Business Quality, and Governance respectively, resulting in improved portfolio quality metrics.	Balance Sheet Business Quality Governance Risk Rating Fundamentals
2025 Q2	Value The portfolio maintains a value-oriented approach with price-to-earnings ratio in line with long-term averages. The manager is willing to pay higher multiples for quality businesses that are well capitalized and managed, noting a valuation dichotomy between value and growth indices that should benefit active investors focused on fundamentals.	Valuation Multiples Quality Fundamentals Active
	Oil Energy sector significantly underperformed in the quarter, declining 9% as WTI crude prices fell. The portfolio holds energy positions like APA Corp and NOV Inc, viewing the energy market as underearning versus normal profitability levels and potentially perennially undersupplied despite current headwinds.	WTI OPEC Permian Upstream Downstream
	AI Artificial Intelligence enthusiasm resurfaced in the quarter, contributing to technology sector outperformance of 24%. The market's performance was concentrated in AI-related names, with the S&P 500's 8 largest contributors sourcing 75% of the market's return.	Technology Semiconductors Cloud Data Centers Software
2025 Q1	Value The fund emphasizes value investing with the portfolio trading at 8x normal earnings versus Russell 1000 Value at 17x. The manager believes value dislocations exist across market segments and expects further correction/normalization, drawing parallels to early 2000s market conditions.	Valuation Earnings Multiples Normalization Dislocations
	Healthcare Healthcare was the largest positive contributor to performance with the fund's healthcare stocks rising 19% versus 6% for index healthcare stocks. The fund increased healthcare exposure meaningfully after identifying attractive risk-adjusted valuation opportunities as the sector underperformed.	Healthcare Managed Care Insurance Medicare Medicaid
2024 Q4	Value The fund maintains a value-oriented approach despite challenging market conditions. The portfolio trades very near its long-term average valuation despite passive indices trading well above their historical averages. The fund continues to find attractive risk/return opportunities in a challenging market by focusing on valuation balanced against fundamental risks.	Value Valuation Undervalued Risk-adjusted Fundamentals
	Financials Financials is the largest sector weight in the portfolio, though exposure was reduced significantly over the year. The portfolio's financials returned 35% in 2024, outperforming the Russell 1000 Value's financials which returned 32%. The fund trimmed positions in lieu of better risk-adjusted valuation opportunities.	Banks Financials Deposits Deregulation Asset Cap
2024 Q3	Value The portfolio maintains a strong value orientation with 90-93% active share relative to benchmarks. Healthcare positions trade at 12x normal earnings representing attractive valuations. Bank valuations are at a larger-than-normal discount to the market, roughly 2 standard deviations wider than the 30-year average.	Valuation Discount Undervalued Attractive Cheap
	Financials At 27%, financials represent the portfolio's largest sector weight with positions diversified across financial services, capital markets, and insurance. Nearly half the financials exposure is banks, where valuations are at larger-than-normal discounts to the market despite manageable risks.	Banks Insurance Capital Markets Financial Services
	Energy Energy was the largest source of underperformance as both overweight positioning and stock selection hurt during the quarter. WTI crude prices declined from $82/barrel to $68/barrel, pressuring energy holdings like APA Corp and NOV Inc.	Oil Energy Crude Exploration Oilfield

QUARTER

THEMES

Oil

Energy was the primary bright spot with the portfolio's overweight position providing an effective hedge during geopolitical turmoil. The manager believes the global crude market faces a risk of structural undersupply in coming years, supporting higher oil prices over time, with significant supply originating from geopolitically unstable regions.

Crude Oil Geopolitical Risk Supply Disruption Energy Brent

Enterprise Software

Recent AI product releases have raised concerns about potential disruption to enterprise software businesses, causing a selloff. However, the manager believes this reaction is overstated and presents opportunity rather than risk, as companies like Workday and Salesforce have competitive advantages rooted in domain expertise and deep integrations.

Software AI Disruption SaaS Enterprise Cloud

AI

AI-driven investment themes were primary market drivers in the quarter. Recent AI product releases, including Anthropic's legal and finance automation tools, have raised market concerns about disruption to traditional software businesses, though the manager views this as creating opportunity rather than representing genuine displacement risk.

Artificial Intelligence Automation Disruption Technology Claude

Managed Care

Health insurers underperformed during the quarter due to policy uncertainty around Medicare Advantage reimbursement rates and higher than expected utilization rates. The manager believes the market is incorrectly discounting these earnings pressures as structural rather than temporary, with management teams focused on margin recovery through pricing adjustments.

Health Insurance Medicare Advantage Utilization Reimbursement Pricing

2025 Q4

AI

AI infrastructure buildout continues to drive strong earnings growth for portfolio companies. Draft One AI tool for police reports shows material time savings and represents fastest booked Axon product to date. AI Era Plan expanding software value per officer through embedded AI workflows.

AI Infrastructure Draft One AI Era Plan LLMs Automation

Semiconductors

Portfolio includes major semiconductor positions in NVIDIA, Broadcom, and ASML. AI servers require greater connector content versus traditional servers. Semiconductor companies showing strong earnings growth despite cyclical industry nature.

NVIDIA Broadcom ASML AI Servers Interconnects

Software

Software segment showing strong growth with companies like ServiceNow, Intuit, and Synopsys. AI creating new monetization opportunities through embedded workflows. Software revenue percentage expansion drives margin improvement.

SaaS ServiceNow Intuit Synopsys AI Workflows

Data Centers

Projected incremental 100GW of data center capacity necessary through 2030 creates large opportunity. AI data centers drive structurally higher interconnect content with dense GPU racks requiring more high-speed connections.

Data Center Capacity GPU Racks Interconnects Infrastructure

2025 Q3

Value

The portfolio trades at less than 13x consensus earnings and a little more than 9x normal earnings, in line with its historical average despite the broad market's elevated valuation. The manager emphasizes attractive valuation opportunities in segments of the equity market while noting the S&P 500 is fully valued or overvalued at 25x next year's consensus estimates.

Valuation Undervalued Earnings Multiple Discount

Quality

The portfolio exhibits attractive and improving risk characteristics with meaningful improvement in balance sheet and quality ratings. The 5 largest stock purchases had average Fundamental Risk Ratings of 1.4, 1.6, and 2.4 for Balance Sheet, Business Quality, and Governance respectively, resulting in improved portfolio quality metrics.

Balance Sheet Business Quality Governance Risk Rating Fundamentals

2025 Q2

Value

The portfolio maintains a value-oriented approach with price-to-earnings ratio in line with long-term averages. The manager is willing to pay higher multiples for quality businesses that are well capitalized and managed, noting a valuation dichotomy between value and growth indices that should benefit active investors focused on fundamentals.

Valuation Multiples Quality Fundamentals Active

Oil

Energy sector significantly underperformed in the quarter, declining 9% as WTI crude prices fell. The portfolio holds energy positions like APA Corp and NOV Inc, viewing the energy market as underearning versus normal profitability levels and potentially perennially undersupplied despite current headwinds.

WTI OPEC Permian Upstream Downstream

AI

Artificial Intelligence enthusiasm resurfaced in the quarter, contributing to technology sector outperformance of 24%. The market's performance was concentrated in AI-related names, with the S&P 500's 8 largest contributors sourcing 75% of the market's return.

Technology Semiconductors Cloud Data Centers Software

2025 Q1

Value

The fund emphasizes value investing with the portfolio trading at 8x normal earnings versus Russell 1000 Value at 17x. The manager believes value dislocations exist across market segments and expects further correction/normalization, drawing parallels to early 2000s market conditions.

Valuation Earnings Multiples Normalization Dislocations

Healthcare

Healthcare was the largest positive contributor to performance with the fund's healthcare stocks rising 19% versus 6% for index healthcare stocks. The fund increased healthcare exposure meaningfully after identifying attractive risk-adjusted valuation opportunities as the sector underperformed.

Healthcare Managed Care Insurance Medicare Medicaid

2024 Q4

Value

The fund maintains a value-oriented approach despite challenging market conditions. The portfolio trades very near its long-term average valuation despite passive indices trading well above their historical averages. The fund continues to find attractive risk/return opportunities in a challenging market by focusing on valuation balanced against fundamental risks.

Value Valuation Undervalued Risk-adjusted Fundamentals

Financials

Financials is the largest sector weight in the portfolio, though exposure was reduced significantly over the year. The portfolio's financials returned 35% in 2024, outperforming the Russell 1000 Value's financials which returned 32%. The fund trimmed positions in lieu of better risk-adjusted valuation opportunities.

Banks Financials Deposits Deregulation Asset Cap

2024 Q3

Value

The portfolio maintains a strong value orientation with 90-93% active share relative to benchmarks. Healthcare positions trade at 12x normal earnings representing attractive valuations. Bank valuations are at a larger-than-normal discount to the market, roughly 2 standard deviations wider than the 30-year average.

Valuation Discount Undervalued Attractive Cheap

Financials

At 27%, financials represent the portfolio's largest sector weight with positions diversified across financial services, capital markets, and insurance. Nearly half the financials exposure is banks, where valuations are at larger-than-normal discounts to the market despite manageable risks.

Banks Insurance Capital Markets Financial Services

Energy

Energy was the largest source of underperformance as both overweight positioning and stock selection hurt during the quarter. WTI crude prices declined from $82/barrel to $68/barrel, pressuring energy holdings like APA Corp and NOV Inc.

Oil Energy Crude Exploration Oilfield

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Apr 20, 2026	Fund Letters	Hotchkis & Wiley Large Cap Fundamental Value	APA	APA Corporation	Oil & Gas E&P	Oil, Gas & Consumable Fuels	Bull	NASDAQ	E&P, energy, Equity, Free Cash Flow, natural gas, oil, Permian Basin, Undersupply, Value	Login
Apr 20, 2026	Fund Letters	Hotchkis & Wiley Large Cap Fundamental Value	OVV	Ovintiv Inc.	Oil & Gas E&P	Oil, Gas & Consumable Fuels	Bull	New York Stock Exchange	E&P, energy, Equity, Free Cash Flow, Montney Basin, oil, Permian Basin, shareholder returns, Unconventional, Value	Login
Apr 20, 2026	Fund Letters	Hotchkis & Wiley Large Cap Fundamental Value	FDX	FedEx Corporation	Integrated Freight & Logistics	Air Freight & Logistics	Bull	New York Stock Exchange	cost discipline, Equity, Free Cash Flow, Freight, Integration, Logistics, margin expansion, parcel delivery, turnaround, Value	Login
Apr 20, 2026	Fund Letters	Hotchkis & Wiley Large Cap Fundamental Value	WDAY	Workday, Inc.	Software - Application	Software	Bull	NASDAQ	AI disruption, Cloud software, Enterprise software, Equity, ERP, growth, High retention, Human capital management, SaaS, Subscription	Login
Apr 20, 2026	Fund Letters	Hotchkis & Wiley Large Cap Fundamental Value	CRM	Salesforce, Inc.	Software - Application	Software	Bull	New York Stock Exchange	AI integration, Cloud software, CRM, cross-selling, Enterprise software, Equity, growth, high margins, recurring revenue, SaaS	Login
Apr 20, 2026	Fund Letters	Hotchkis & Wiley Large Cap Fundamental Value	AIG	American International Group, Inc.	Insurance - Diversified	Insurance	Bull	New York Stock Exchange	Commercial Insurance, Equity, Expense Discipline, leadership transition, premium growth, Property & Casualty Insurance, turnaround, underwriting, Value	Login
Jun 30, 2025	Fund Letters	Hotchkis & Wiley Large Cap Fundamental Value	UNH	UnitedHealth Group	Health Care	Health Care Services	Bull	NYSE	Equity, health insurance, Healthcare services, turnaround, US, Value	Login
Jun 30, 2025	Fund Letters	Hotchkis & Wiley Large Cap Fundamental Value	C	Citigroup	Financials	Banks	Bull	NYSE	banking, Equity, financials, operating leverage, turnaround, US, Value	Login
Jun 30, 2025	Fund Letters	Hotchkis & Wiley Large Cap Fundamental Value	FFIV	F5 Inc.	Information Technology	Communications Equipment	Bull	NASDAQ	cash generation, Equity, growth, Networking, recurring revenue, Software, technology, Value	Login
Jun 30, 2025	Fund Letters	Hotchkis & Wiley Large Cap Fundamental Value	APA	APA Corp.	Energy	Oil, Gas & Consumable Fuels	Bull	NASDAQ	cash generation, E&P, energy, Equity, International, Oil & Gas, Permian, Value	Login
Jun 30, 2025	Fund Letters	Hotchkis & Wiley Large Cap Fundamental Value	NOV	NOV Inc.	Energy	Energy Equipment & Services	Bull	NYSE	aftermarket, Cyclical, Energy Services, Equity, Oilfield Equipment, recovery, Rig Technology, Value	Login
Jun 30, 2025	Fund Letters	Hotchkis & Wiley Large Cap Fundamental Value	KHC	Kraft Heinz	Consumer Staples	Food Products	Bull	NASDAQ	consumer staples, defensive, dividend, Equity, Food & Beverage, M&A, share repurchase, Value	Login
Dec 31, 2024	Fund Letters	Hotchkis & Wiley Large Cap Fundamental Value	FFIV	F5 Inc.	Information Technology	Communications Equipment	Bull	NASDAQ	Application Security, data center, debt-free, margin expansion, Networking, SaaS, Subscription Software, technology	Login
Dec 31, 2024	Fund Letters	Hotchkis & Wiley Large Cap Fundamental Value	GM	General Motors Co.	Consumer Discretionary	Automobile Manufacturers	Bull	NYSE	automotive, capital allocation, Free Cash Flow, market leadership, share repurchase, undervalued, Value	Login
Dec 31, 2024	Fund Letters	Hotchkis & Wiley Large Cap Fundamental Value	WFC	Wells Fargo & Co.	Financials	Diversified Banks	Bull	NYSE	Asset Cap, banking, Deposits, Deregulation, Franchise Value, geographic concentration, Roa, ROE	Login
Dec 31, 2024	Fund Letters	Hotchkis & Wiley Large Cap Fundamental Value	ELV	Elevance Health Inc.	Health Care	Managed Health Care	Bull	NYSE	Commercial Insurance, health insurance, managed care, Medical Spending, Scale Advantages, undervalued	Login
Dec 31, 2024	Fund Letters	Hotchkis & Wiley Large Cap Fundamental Value	CVS	CVS Health Corp.	Health Care	Health Care Services	Bull	NYSE	Annual Repricing, Diversified Healthcare, health insurance, Integrated Model, Margin recovery, Pbm, Retail Pharmacy	Login
Dec 31, 2024	Fund Letters	Hotchkis & Wiley Large Cap Fundamental Value	OLN	Olin Corp.	Materials	Commodity Chemicals	Bull	NYSE	capital allocation, Chlor Alkali, Commodity chemicals, Cyclical, diversification, Hurricane Impact, strong balance sheet	Login
Sep 30, 2024	Fund Letters	Hotchkis & Wiley Large Cap Fundamental Value	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 Large Cap Fundamental Value	ERIC	Telefonaktiebolaget LM Ericsson	Information Technology	Communications Equipment	Bull	NASDAQ	5G infrastructure, Hardware, North America, recovery, Software, telecommunications equipment, Wireless Networks	Login
Sep 30, 2024	Fund Letters	Hotchkis & Wiley Large Cap Fundamental Value	UL	Unilever PLC	Consumer Staples	Personal Products	Bull	NYSE	activist investor, consumer staples, home care, market leader, personal care, portfolio optimization, turnaround, volume growth	Login
Sep 30, 2024	Fund Letters	Hotchkis & Wiley Large Cap Fundamental Value	APA	APA Corporation	Energy	Oil, Gas & Consumable Fuels	Bear	NASDAQ	acquisition integration, E&P, Egypt, Free Cash Flow, North sea, Oil & Gas, Permian Basin, Suriname	Login
Sep 30, 2024	Fund Letters	Hotchkis & Wiley Large Cap Fundamental Value	NOV	NOV Inc.	Energy	Energy Equipment & Services	Bull	NYSE	aftermarket services, Cyclical Recovery, Drilling Equipment, Energy Services, Installed base, Oilfield Equipment, operating leverage	Login
Sep 30, 2024	Fund Letters	Hotchkis & Wiley Large Cap Fundamental Value	GM	General Motors Company	Consumer Discretionary	Automobiles	Bull	NYSE	automotive, contrarian, Cyclical, Free Cash Flow, market leader, Passenger Vehicles, share repurchases, undervalued	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Apr 20, 2026

Fund Letters

Hotchkis & Wiley Large Cap Fundamental Value

APA

APA Corporation

Oil & Gas E&P

Oil, Gas & Consumable Fuels

Bull

NASDAQ

E&P, energy, Equity, Free Cash Flow, natural gas, oil, Permian Basin, Undersupply, Value

Apr 20, 2026

Fund Letters

Hotchkis & Wiley Large Cap Fundamental Value

OVV

Ovintiv Inc.

Oil & Gas E&P

Oil, Gas & Consumable Fuels

Bull

New York Stock Exchange

E&P, energy, Equity, Free Cash Flow, Montney Basin, oil, Permian Basin, shareholder returns, Unconventional, Value

Apr 20, 2026

Fund Letters

Hotchkis & Wiley Large Cap Fundamental Value

FDX

FedEx Corporation

Integrated Freight & Logistics

Air Freight & Logistics

Bull

New York Stock Exchange

cost discipline, Equity, Free Cash Flow, Freight, Integration, Logistics, margin expansion, parcel delivery, turnaround, Value

Apr 20, 2026

Fund Letters

Hotchkis & Wiley Large Cap Fundamental Value

WDAY

Workday, Inc.

Software - Application

Software

Bull

NASDAQ

AI disruption, Cloud software, Enterprise software, Equity, ERP, growth, High retention, Human capital management, SaaS, Subscription

Apr 20, 2026

Fund Letters

Hotchkis & Wiley Large Cap Fundamental Value

CRM

Salesforce, Inc.

Software - Application

Software

Bull

New York Stock Exchange

AI integration, Cloud software, CRM, cross-selling, Enterprise software, Equity, growth, high margins, recurring revenue, SaaS

Apr 20, 2026

Fund Letters

Hotchkis & Wiley Large Cap Fundamental Value

AIG

American International Group, Inc.

Insurance - Diversified

Insurance

Bull

New York Stock Exchange

Commercial Insurance, Equity, Expense Discipline, leadership transition, premium growth, Property & Casualty Insurance, turnaround, underwriting, Value

Jun 30, 2025

Fund Letters

Hotchkis & Wiley Large Cap Fundamental Value

UNH

UnitedHealth Group

Health Care

Health Care Services

Bull

NYSE

Equity, health insurance, Healthcare services, turnaround, US, Value

Jun 30, 2025

Fund Letters

Hotchkis & Wiley Large Cap Fundamental Value

Citigroup

Financials

Banks

Bull

NYSE

banking, Equity, financials, operating leverage, turnaround, US, Value

Jun 30, 2025

Fund Letters

Hotchkis & Wiley Large Cap Fundamental Value

FFIV

F5 Inc.

Information Technology

Communications Equipment

Bull

NASDAQ

cash generation, Equity, growth, Networking, recurring revenue, Software, technology, Value

Jun 30, 2025

Fund Letters

Hotchkis & Wiley Large Cap Fundamental Value

APA

APA Corp.

Energy

Oil, Gas & Consumable Fuels

Bull

NASDAQ

cash generation, E&P, energy, Equity, International, Oil & Gas, Permian, Value

Jun 30, 2025

Fund Letters

Hotchkis & Wiley Large Cap Fundamental Value

NOV

NOV Inc.

Energy

Energy Equipment & Services

Bull

NYSE

aftermarket, Cyclical, Energy Services, Equity, Oilfield Equipment, recovery, Rig Technology, Value

Jun 30, 2025

Fund Letters

Hotchkis & Wiley Large Cap Fundamental Value

KHC

Kraft Heinz

Consumer Staples

Food Products

Bull

NASDAQ

consumer staples, defensive, dividend, Equity, Food & Beverage, M&A, share repurchase, Value

Dec 31, 2024

Fund Letters

Hotchkis & Wiley Large Cap Fundamental Value

FFIV

F5 Inc.

Information Technology

Communications Equipment

Bull

NASDAQ

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

Dec 31, 2024

Fund Letters

Hotchkis & Wiley Large Cap Fundamental Value

General Motors Co.

Consumer Discretionary

Automobile Manufacturers

Bull

NYSE

automotive, capital allocation, Free Cash Flow, market leadership, share repurchase, undervalued, Value

Dec 31, 2024

Fund Letters

Hotchkis & Wiley Large Cap Fundamental Value

WFC

Wells Fargo & Co.

Financials

Diversified Banks

Bull

NYSE

Asset Cap, banking, Deposits, Deregulation, Franchise Value, geographic concentration, Roa, ROE

Dec 31, 2024

Fund Letters

Hotchkis & Wiley Large Cap Fundamental Value

ELV

Elevance Health Inc.

Health Care

Managed Health Care

Bull

NYSE

Commercial Insurance, health insurance, managed care, Medical Spending, Scale Advantages, undervalued

Dec 31, 2024

Fund Letters

Hotchkis & Wiley Large Cap Fundamental Value

CVS

CVS Health Corp.

Health Care

Health Care Services

Bull

NYSE

Annual Repricing, Diversified Healthcare, health insurance, Integrated Model, Margin recovery, Pbm, Retail Pharmacy

Dec 31, 2024

Fund Letters

Hotchkis & Wiley Large Cap Fundamental Value

OLN

Olin Corp.

Materials

Commodity Chemicals

Bull

NYSE

capital allocation, Chlor Alkali, Commodity chemicals, Cyclical, diversification, Hurricane Impact, strong balance sheet

Sep 30, 2024

Fund Letters

Hotchkis & Wiley Large Cap Fundamental Value

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 Large Cap Fundamental Value

ERIC

Telefonaktiebolaget LM Ericsson

Information Technology

Communications Equipment

Bull

NASDAQ

5G infrastructure, Hardware, North America, recovery, Software, telecommunications equipment, Wireless Networks

Sep 30, 2024

Fund Letters

Hotchkis & Wiley Large Cap Fundamental Value

Unilever PLC

Consumer Staples

Personal Products

Bull

NYSE

activist investor, consumer staples, home care, market leader, personal care, portfolio optimization, turnaround, volume growth

Sep 30, 2024

Fund Letters

Hotchkis & Wiley Large Cap Fundamental Value

APA

APA Corporation

Energy

Oil, Gas & Consumable Fuels

Bear

NASDAQ

acquisition integration, E&P, Egypt, Free Cash Flow, North sea, Oil & Gas, Permian Basin, Suriname

Sep 30, 2024

Fund Letters

Hotchkis & Wiley Large Cap Fundamental Value

NOV

NOV Inc.

Energy

Energy Equipment & Services

Bull

NYSE

aftermarket services, Cyclical Recovery, Drilling Equipment, Energy Services, Installed base, Oilfield Equipment, operating leverage

Sep 30, 2024

Fund Letters

Hotchkis & Wiley Large Cap Fundamental Value

General Motors Company

Consumer Discretionary

Automobiles

Bull

NYSE

automotive, contrarian, Cyclical, Free Cash Flow, market leader, Passenger Vehicles, share repurchases, undervalued

TICKER	COMMENTARY
APA	APA is an independent E&P operating in the Midland and Delaware basins of the Permian and onshore Egypt, with exploration potential in Suriname, that trades at a discount despite lucrative natural gas financial contracts. We own APA for exposure to an energy market generating significant free cash flow in a perennially undersupplied environment. APA outperformed in the first quarter as oil prices surged following the Strait of Hormuz closure and the US-Israel conflict with Iran, with Brent crude peaking near $127. The company's natural gas financial contracts—which capture differentials between Waha, the Houston Ship Channel, Henry Hub, and global LNG—became significantly more valuable as supply disruptions drove wider basis differentials.
OVV	Ovintiv is an independent E&P with leading positions in the Permian and Montney basins that trades at a discount despite high-quality, long-life unconventional assets. We own Ovintiv for exposure to an energy market generating significant free cash flow, with assets positioned favorably on the global cost curve. Ovintiv outperformed in the first quarter as oil prices surged following the Strait of Hormuz closure, with Brent crude peaking near $127. The company's Permian and Montney assets benefited from the geopolitical risk premium, while its disciplined capital allocation and shareholder return framework resonated with investors seeking cash flow generation.
FDX	FedEx is one of the largest providers of parcel delivery and freight services globally, whose shares trade below intrinsic value due to transitory headwinds – including unfavorable mix shift and integration challenges – that we expect to resolve as integration improves and new leadership drives cost discipline and shareholder returns. Q1 performance was strong, driven by a well-received Investor Day where management outlined a path to strong earnings growth, margin expansion, and improved free cash flow generation. Our long-term thesis remains intact as FedEx continues to make meaningful progress on its key initiatives.
WDAY	Workday is a leader in cloud application software for back-office business functions including human capital management, financials management, and ERP (enterprise resource planning). Workday's formidable competitive advantages lead to compelling unit economics (97% gross retention, 38% normal EBIT margin, low-teens subscription revenue growth) and its ERP software markets are both the largest and least cloud-penetrated in the application software universe. This provides Workday with a long runway to invest at high returns while trading at a valuation that is attractive for an established franchise. Workday posted a good Q4 that slightly beat expectations. However, continued market concerns that AI agents will displace traditional software have pressured the stock, despite switching costs and compliance risks making displacement scenarios unrealistic.
CRM	Salesforce is among the top five largest global software companies, with a broad portfolio that includes Sales, Service, Marketing & Commerce Clouds, Slack, MuleSoft, Tableau, and the Data & AI Cloud. Its products are deeply embedded across a large enterprise customer base, creating a long runway for growth through seat expansions, cross selling, and pricing, and supporting strong revenue growth for many years. Combined with sticky recurring revenue, high gross margins, and limited capital reinvestment needs, this creates a resilient business model with meaningful downside mitigation. Salesforce posted a good Q4 that matched growth expectations, however, market concerns that AI agents could displace traditional software have continued to pressure the stock, leaving the shares trading at an attractive valuation for an established franchise.
AIG	American International Group is a leading commercial property-casualty insurer that has achieved improved underwriting margins and expense discipline through a multi-year turnaround. We own AIG for its strong underwriting results and attractive valuation. AIG underperformed in the first quarter, as shares fell on the announcement that CEO Peter Zaffino would step down mid-year with Aon executive Eric Andersen taking over. Eric Andersen officially joined the company on February 16 with no further senior leadership changes. Management reaffirmed Investor Day targets including low-to-mid teens premium growth in 2026.

TICKER

COMMENTARY

APA

APA is an independent E&P operating in the Midland and Delaware basins of the Permian and onshore Egypt, with exploration potential in Suriname, that trades at a discount despite lucrative natural gas financial contracts. We own APA for exposure to an energy market generating significant free cash flow in a perennially undersupplied environment. APA outperformed in the first quarter as oil prices surged following the Strait of Hormuz closure and the US-Israel conflict with Iran, with Brent crude peaking near $127. The company's natural gas financial contracts—which capture differentials between Waha, the Houston Ship Channel, Henry Hub, and global LNG—became significantly more valuable as supply disruptions drove wider basis differentials.

OVV

Ovintiv is an independent E&P with leading positions in the Permian and Montney basins that trades at a discount despite high-quality, long-life unconventional assets. We own Ovintiv for exposure to an energy market generating significant free cash flow, with assets positioned favorably on the global cost curve. Ovintiv outperformed in the first quarter as oil prices surged following the Strait of Hormuz closure, with Brent crude peaking near $127. The company's Permian and Montney assets benefited from the geopolitical risk premium, while its disciplined capital allocation and shareholder return framework resonated with investors seeking cash flow generation.

FDX

FedEx is one of the largest providers of parcel delivery and freight services globally, whose shares trade below intrinsic value due to transitory headwinds – including unfavorable mix shift and integration challenges – that we expect to resolve as integration improves and new leadership drives cost discipline and shareholder returns. Q1 performance was strong, driven by a well-received Investor Day where management outlined a path to strong earnings growth, margin expansion, and improved free cash flow generation. Our long-term thesis remains intact as FedEx continues to make meaningful progress on its key initiatives.

WDAY

Workday is a leader in cloud application software for back-office business functions including human capital management, financials management, and ERP (enterprise resource planning). Workday's formidable competitive advantages lead to compelling unit economics (97% gross retention, 38% normal EBIT margin, low-teens subscription revenue growth) and its ERP software markets are both the largest and least cloud-penetrated in the application software universe. This provides Workday with a long runway to invest at high returns while trading at a valuation that is attractive for an established franchise. Workday posted a good Q4 that slightly beat expectations. However, continued market concerns that AI agents will displace traditional software have pressured the stock, despite switching costs and compliance risks making displacement scenarios unrealistic.

CRM

Salesforce is among the top five largest global software companies, with a broad portfolio that includes Sales, Service, Marketing & Commerce Clouds, Slack, MuleSoft, Tableau, and the Data & AI Cloud. Its products are deeply embedded across a large enterprise customer base, creating a long runway for growth through seat expansions, cross selling, and pricing, and supporting strong revenue growth for many years. Combined with sticky recurring revenue, high gross margins, and limited capital reinvestment needs, this creates a resilient business model with meaningful downside mitigation. Salesforce posted a good Q4 that matched growth expectations, however, market concerns that AI agents could displace traditional software have continued to pressure the stock, leaving the shares trading at an attractive valuation for an established franchise.

AIG

American International Group is a leading commercial property-casualty insurer that has achieved improved underwriting margins and expense discipline through a multi-year turnaround. We own AIG for its strong underwriting results and attractive valuation. AIG underperformed in the first quarter, as shares fell on the announcement that CEO Peter Zaffino would step down mid-year with Aon executive Eric Andersen taking over. Eric Andersen officially joined the company on February 16 with no further senior leadership changes. Management reaffirmed Investor Day targets including low-to-mid teens premium growth in 2026.

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Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 31st March 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

Oil

Enterprise Software

AI

Managed Care

AI

Semiconductors

Software

Data Centers

Value

Quality

Value

Oil

AI

Value

Healthcare

Value

Financials

Value

Financials

Energy

Investor Pitches

Current Portfolio as of ( 31st March 2026 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

George Davis Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

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Hotchkis & Wiley Large Cap Fundamental Value