News & Insights

A Conversation with Portfolio Manager David Green

Portfolio Manager David Green covers a number of topics, including:

  • A review of what distinguishes Value Opportunities in the marketplace
  • The current dichotomy between value and growth
  • What risk management means to Hotchkis & Wiley
  • Where we are finding opportunities today

 

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You should consider the Hotchkis & Wiley Value Opportunities Fund’s investment objectives, risks, and charges and expenses carefully before you invest. This and other important information is contained in the Funds' summary prospectus and prospectuswhich can be obtained by calling 800-796-5606. Read carefully before you invest.

The fund is non-diversified and may invest in foreign securities, junk bonds, derivatives, or small/mid cap companies.  Please read the fund prospectus for a full list of fund risks.

The portfolio manager’s views and opinions expressed in this podcast are as of February 9, 2021. Such views are subject to change and may differ from others in the firm, or the firm as a whole. The portfolio manager’s comments may include estimated and/or forecasted views, which are believed to be based on reasonable assumptions within the bounds of current and historical information. However, there is no guarantee that any estimates, forecasts or views will be realized. Any discussion or view on a particular company, asset class/segment, industry/sector and/or investment type are not investment recommendations, should not be assumed to be profitable, and are subject to change.

Top ten holdings as of 12/31/20 as a % of the Fund’s net assets: Microsoft Corp. 8.2%, General Electric Co. 7.8%, Wells Fargo & Co. 5.6%, American Int'l Group Inc. 4.3%, Goldman Sachs Group Inc. 4.3%, Amerco 4.1%, News Corp. 4.0%, Bank of America Corp. 3.7%, Triple-S Mgmt Corp. 3.7% and Oracle Corp. 3.7%. Fund holdings and/or sector allocations are subject to change and are not recommendations to buy or sell any security. Diversification does not assure a profit nor protect against loss in a declining market.

Market capitalization refers to the total dollar market value of a company's outstanding shares of stock. Margin of safety is a principle of investing in which an investor only purchases securities when the market price is significantly below its intrinsic value. In other words, when market price is significantly below your estimation of the intrinsic value, the difference is the margin of safety. Standard deviation is a measure of the amount of variation or dispersion of a set of values. The price-to-book ratio measures the market's valuation of a company relative to its book value. The price-to-earnings ratio for valuing a company measures its current share price relative to its per-share earnings. The Russell 3000® Value Index includes stocks from the Russell 3000® Index with lower price-to-book ratios and lower expected growth rates. The index does not reflect the payment of transaction costs, fees and expenses associated with an investment in the Fund. It is not possible to invest directly in an index.

Investing in equity securities have greater risks and price volatility than U.S. Treasuries and bonds, where the price of these securities may decline due to various company, industry, and market factors. Investing in foreign as well as emerging markets involves additional risk such as greater volatility, political, economic, and currency risks and differences in accounting methods. Investing in smaller, medium-sized and/or newer companies involves greater risks not associated with investing in large company stocks, such as business risk, significant stock price fluctuations and illiquidity. Investing in debt securities typically decreases in value when interest rates rise. This risk is usually greater for longer-term debt securities.

Market Disruption: The recent global coronavirus pandemic has caused and continues to cause disruption in the global economy, unprecedented business and travel disruption and extreme fluctuations in global capital and financial markets. H&W is unable to predict the consequences of the upheaval caused by coronavirus pandemic, which, depending on the severity and the length of the outbreak, has the potential to negatively impact the firm’s investment strategies and reduce available investment opportunities.

Mutual fund investing involves risk. Principal loss is possible.
The Hotchkis & Wiley Funds are distributed by Quasar Distributors, LLC