Capital Income

As of 03/31/2019
Common Stock 55.3
Bonds 39.3
Preferred/Convertibles 0.5
Cash & Equivalents 1.2
Other 3.7
  Portfolio S&P 500
Price/Normal Earnings 5.1x 17.7x
Projected P/E (FY2) 9.5x 15.2x
Price/Book 1.0x 3.2x
Dividend Yield 3.1% 1.9%
Weighted Average
Market Capitalization (millions)
$67,237 $227,005
Median Market Capitalization
$13,352 $21,741
Number of Stocks 65 500
American International Group Inc. 2.9
General Electric Co. 2.8
Whiting Petroleum Corp. 2.8
WestJet Airlines 2.0
Seritage Growth Properties 1.8
Discovery Inc. 1.7
Wells Fargo & Co. 1.7
Microsoft Corp. 1.7
Goldman Sachs Group Inc. 1.6
GEO Group Inc. 1.4
Cash & Equivalents 2.0
Investment Grade 3.0
BB 33.3
B 47.2
CCC+ or lower 6.6
Non-Rated 7.9
Credit Default Swap Index 0.0
  Portfolio ICE BofAML US
Yield-to-Worst 7.6% 2.9%
Modified Duration 3.5 years 6.1 years
Spread over Treasuries 527 bps 50 bps
Average Coupon Rate 6.6% 3.4%
Number of Issuers 126 1,657
  Portfolio Coupon
American Zinc Recycling 1.4 -- --
Rockpoint Gas Storage Canada Ltd. 0.9 7.000% 03/31/2023
Quiksilver Inc. 0.8 -- --
Valeant Pharmaceuticals 0.7 6.125% 04/15/2025
Weekley Homes LP 0.6 6.000% 02/01/2023


% of Total Portfolio
ICE BofAML US Corp/Govt/Mtg = ICE BofAML U.S. Corporate, Government and Mortgage Index

Data source: Hotchkis & Wiley, FactSet, Bloomberg

Information provided is based on representative portfolio of the Capital Income strategy. Statistics and holdings may vary due to different restrictions, cash flows, and other relevant considerations. Holdings identified do not represent all of the securities purchased, sold, or recommended for advisory clients, and may not be indicative of current or future holdings or trading activity. Securities shown in aggregate may represent only a limited portion of an account’s portfolio holdings. No assumptions should be made that companies identified, or all investment decisions were, or will be profitable. A complete list of portfolio holdings is available upon request. Statistics presented may be based on proprietary or third-party estimates, which are subject to change and cannot be guaranteed. Investing in high yield securities is subject to certain risks, including market, credit, liquidity, issuer, interest-rate, inflation, and derivatives risks.  Lower-rated and non-rated securities involve greater risk than higher-rated securities.  Investing in value stocks presents the risk that value stocks may fall out of favor with investors and underperform growth stocks during given periods. 

Credit Quality weights by rating were derived from the highest bond rating as determined by S&P, Moody's or Fitch. In limited situations when none of the three rating agencies have issued a formal rating, the Advisor will determine an internal rating.

The ICE BofAML index data referenced is the property of ICE Data Indices, LLC (“ICE BofAML”) and/or its licensors and has been licensed for use by Hotchkis & Wiley. ICE BofAML and its licensors accept no liability in connection with its use. See Index definitions for full disclaimer.

Index definitions

Glossary of financial terms