CEO and Portfolio Manager Scott McBride joins the H&W podcast series to talk about performance drivers and portfolio positioning, including his latest thoughts on energy, financials, and technology.
All investments contain risk and may lose value. This podcast is for general information only and should not be relied on for investment advice or recommendation of any particular security, strategy, or investment product.
The portfolio manager’s views and opinions expressed in this podcast are as of July 13, 2022. Such views are subject to change without notice 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. The podcast may also contain views that are forward-looking statements. Due to various risks and uncertainties, actual events/results or the performance of the Large Cap Fundamental Value (LCFV) strategy may differ materially from those reflected or contemplated in such forward-looking statements.
The securities highlighted in this podcast are intended to be for illustrative purposes only. Any discussion or view of a security, an 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 without notice. In the event of new information or changed circumstances, H&W reserves the right to change its investment perspective and outlook and has no obligation to provide revised assessments and/or opinions.
Investment returns include reinvestment of dividends, interest and capital gains. Valuation is based on trade-date information. Net performance results are presented after actual management fees and all trading expenses but before custodial fees. The Large Cap Fundamental Value strategy’s returns for different time periods and market cycles can result in significantly different performance results. An account’s investment guidelines, timing of transactions, market conditions at the time of investment and other factors may lead to different performance results. The Composite includes all Large Cap Fundamental Value discretionary accounts. The Large Cap Fundamental Value strategy seeks current income and long-term growth of income, as well as capital appreciation, primarily through investments in equity securities of large capitalization companies and may invest in foreign (non-U.S.) securities. Additional performance disclosures are included in the strategy’s GIPS Report.
Holdings and analysis are based on a representative portfolio of the LCFV strategy. The portfolio is selected based on factors determined by Advisor to be “representative” of the strategy, considering such factors as (but not limited to) investment guidelines/restrictions, time period under Advisor’s discretion, and/or cash flow activities. Each portfolio’s holdings/performance in the strategy vary due to different restrictions, cash flows and other relevant considerations. To calculate the portfolio’s net of fee total return, the strategy’s highest annual advisory fee (excluding performance-based fees if applicable) is divided by 12 to get a monthly fee and then multiplied by the number of months in the covered period. The advisory fee for the covered period is then subtracted from each return. Net of fee contribution to return is the average weight multiplied by the portfolio’s net of fee total return. Additional information on the LCFV strategy’s performance is available on our website at www.hwcm.com.
Securities identified do not represent all securities purchased, sold, or recommended for advisory clients, and may not be indicative of current or future holdings or trading activity. No assurance is made that any securities identified, or all investment decisions by H&W were or will be profitable. Portfolio holdings are subject to change. A complete list of holdings is available upon request at [email protected] (subject to the firm’s portfolio holdings disclosure policy).
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. Information technology stocks can be significantly affected by obsolescence of existing technology, short product cycles, falling prices and profits, competition from new market competitors, and general economic conditions.
A value-oriented investment approach involves the risk that value stocks may remain undervalued or may not appreciate in value as anticipated. Value stocks can perform differently from the market as a whole or from other types of stocks and may be out of favor with investors and underperform growth stocks for varying periods of time. Value and growth investing styles will go in and out of favor during different economic environments. Growth investing tends to work well during speculative, momentum-driven markets, while value investing tends to work well following recessionary periods.
The Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. Russell Investment Group is the source and owner of the Russell Index data contained herein (and all trademarks related thereto), which may not be redistributed. The information herein is not approved by Russell. H&W and Russell sectors are based on the Global Industry Classification Standard by MSCI and Standard and Poor.
Market Disruption: The global coronavirus pandemic has caused disruption in the global economy and extreme fluctuations in global capital and financial markets. H&W is unable to predict the impact caused by coronavirus pandemic, which has the potential to negatively impact the firm’s investment strategies and investment opportunities.
*The Information Technology sector includes Alphabet Inc. (Google), a communications services stock H&W considers a software business.
©2023 Hotchkis & Wiley. All rights reserved. No portion of the podcast may be published, reproduced, transmitted or rebroadcast in any form without the express written permission of H&W.
Past performance is not indicative of future performance.