Global Value Portfolio Manager Scott McBride provides an update on performance drivers in the second quarter of 2024 and where he is finding opportunity in global markets.
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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 29, 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. Valuation is based on trade-date information and stated in U.S. dollars. Net performance results are presented after actual management fees and all trading expenses but before custodial fees. The Global 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 Global Value discretionary accounts. The Global Value strategy seeks capital appreciation primarily through investments in common stocks of U.S. and non-U.S. companies, which may include companies located or operating in established or emerging markets. Additional performance disclosures are included in the strategy’s GIPS Report.
The securities discussed are for illustrative purposes only and should not be considered investment recommendations. The securities highlighted are not representative of all securities currently held in the firm’s strategies, nor all investments made by H&W in the past and future. No assumption should be made that the securities were or will be profitable. In addition, the securities highlighted only represents a small portion of all securities held in the firm’s strategies and should not be viewed as the overall performance of the firm’s strategies. It is important to note that H&W’s opinions regarding these securities are subject to change at any time, for any reason, without notice.
Any discussion or view of 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 portfolio manager’s views on the market should not be construed as the Global Value strategy’s expected performance. There is no guarantee of the future performance of the market, nor the Global Value strategy. H&W does not provide any assurance that the Global Value strategy’s objectives and goals will be achieved.
Holdings and attribution are based on a representative portfolio of the Global Value strategy, which may vary by portfolio due to different restrictions, cash flows, and other relevant considerations. Contributors to Relative Performance identifies those securities that are the largest contributors (or detractors) on a relative basis to the MSCI World Value Index. Securities’ absolute performance may reflect different results.
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 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. Information obtained from independent sources is considered reliable, but H&W cannot guarantee its accuracy or completeness.
Style risk: 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.
To calculate the portfolio’s net of fee 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. The MSCI World Index is a free float-adjusted weighted index capturing large and mid cap representation across 23 Developed Markets (DM) countries. The MSCI World Value Index is a free float-adjusted weighted index capturing large and mid cap representation, exhibiting overall value style characteristics, across 23 Developed Markets (DM) countries.
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. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. See Index definitions for full disclaimer.
Past performance is not indicative of future performance.
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