Portfolio Manager David Green provides an update on:
- 2023 performance drivers
- Portfolio positioning adjustments
- The continued divergence between value and growth stocks
Portfolio Manager David Green provides an update on:
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 January 23, 2024. 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 Global Value strategy may differ materially from those reflected or contemplated in such forward-looking statements.
Investment returns include reinvestment of dividends, interest and capital gains. Net performance results are presented after actual management fees and all trading expenses but before custodial fees. The Value Opportunities 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 Value Opportunities discretionary accounts. The Value Opportunities strategy seeks capital appreciation primarily through investments in equity securities, such as common stock, preferred stock and convertible securities, of any size market capitalization, and investment grade and high yield (“junk bonds”) fixed income securities. Additional performance disclosures are included in the strategy’s GIPS Report. The portfolio manager’s views on the market should not be construed as the Value Opportunities strategy’s expected performance. There is no guarantee of the future performance of the market, nor the Value Opportunities strategy. H&W does not provide any assurance that the Value Opportunities strategy’s objectives and goals will be achieved.
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.
The securities reflected herein are intended for illustrative purposes only and not a recommendation to buy or sell specific securities. There is no assurance that the securities discussed will remain in the portfolio or that securities sold have not been repurchased. The securities discussed do not represent the entire portfolio, may only represent a small portion of the portfolio and should not assume the securities discussed were or will be profitable or that recommendations made in the future will be profitable or will equal the performance of the securities discussed.
Holdings and attribution analysis are based on a representative portfolio of the Value Opportunities strategy. Attribution is an analysis of a portfolio’s returns relative to the Russell 3000 Value Index (stock selection includes interaction effect). Bloomberg calculates returns using daily holdings information. Returns calculated using this buy-and-hold methodology can differ from actual client portfolio returns due to data differences, cash flows, trading, and other activity (report is generated at a point in time and will not include any adjustments thereafter). Sector performance only covers the subset of investments specific to that sector. Analysis for different time periods and/or market environments can result in significantly different results. Net performance results incorporate the highest annual fee for the strategy. To calculate the portfolio’s net of fee sector returns, 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 sector return.
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. The Value Opportunities strategy may be viewed as a non-diversified strategy, which may concentrate its assets in fewer individual holdings. The strategy may be exposed to more individual stock volatility than a more diversified strategy.
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.
The Russell 3000® Value Index includes stocks from the Russell 3000® Index with lower price-to-book ratios and lower expected growth rates. The S&P 500® Index is a broad-based, unmanaged index of 500 stocks, which is widely recognized as representative of the equity market in general. The Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a service mark of MSCI Inc. (“MSCI”) and Standard & Poor’s Financial Services, LLC (“S&P”) and is licensed for use by Hotchkis & Wiley (“H&W”). All rights reserved. Neither S&P nor MSCI is liable for any errors or delays in this report, or for any actions taken in reliance on any information contained herein. 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 GICS by MSCI and S&P.
Past performance is not indicative of future performance.
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