Alma Hotchkis & Wiley Global Value Equity Fund

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Overview

Fund description

Alma Hotchkis & Wiley Global Value Equity Fund seeks current income and long-term capital appreciation by investing in a portfolio of global companies.

Investment manager: Hotchkis & Wiley Capital Management, LLC

Hotchkis & Wiley is an SEC-regulated, Los Angeles-based investment adviser founded in 1980, specialised in value equity and high yield bond strategies.

 

Share Class

NAV

Cumulative Performance (%)

Fund Inception 28 February 2019

Daily Monthly Ytd 1Yr 3Yr 5Yr Incept. Incept.Date

The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance quoted. The investment return and the principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.


Strategy & Manager

Funds Strategy

Investment objective: to seek current income and long-term capital growth by investing in a concentrated portfolio of large companies

  • Investment process: analyse long term company fundamentals through in-house bottom-up research aiming to identify undervalued stocks.
  • The fund typically holds 40 to 80 securities and generally invests in companies with a market capitalization above $ 1billion.
  • Benchmark: MSCI World.


Investment Manager

Hotchkis & Wiley is an SEC-regulated, Los Angeles-based investment adviser founded in 1980, specialized in US value equity and US high yield bond strategies.

  • Interests aligned with investors: Hotwhkis & Wiley is an employee owned firm– all 21 investment professionals own equity.
  • George Davis, the CEO of Hotchkis & Wiley and senior portfolio manager of the fund, has over 30 years of investment experience. He coordinates the day-to-day management of around $27 billion of equity value assets.
  • Hotchkis & Wiley manage $30billion.

Key Persons

Scott McBride, CFA Portfolio Manager and President

Mr. McBride became President of Hotchkis & Wiley in 2016. In his role as portfolio manager, Mr. McBride plays an integral part in the investment research review and decision-making process. He coordinates the day-to-day management of Large Cap Fundamental Value, Large Cap Diversified Value, Global Value and International Value portfolios, as well as represents these strategies to current and prospective clients. He also provides expertise and insight into the consumer, financials, healthcare and technology sectors. Prior to joining the firm, Mr. McBride was an associate consultant with Deloitte Consulting and worked as an investment marketing analyst with Fidelity Investments.

 

Patrick Meegan, CPA Portfolio Manager

In his role as portfolio manager, Patrick Meegan plays an integral role in the investment research review and decision-making process. He coordinates the day-to-day management of all High Yield bond and Capital Income portfolios. He also provides expertise and insight into the financials and healthcare sectors. Mr. Meegan began his career at H&W as an investment analyst and became portfolio manager in 2001. Prior to joining the firm, Mr. Meegan was an audit manager at Arthur Andersen and specialized in financial statement audits and advising clients on SEC reporting issues.

Mr. Meegan, a Certified Public Accountant, received his BA in Business Administration with honors from California State University, Fullerton and his MBA with honors from the Anderson School of Management at the University of California, Los Angeles.

 

Judd Peters, CFA Portfolio Manager

In his role as portfolio manager, Mr. Peters plays an integral part in the investment research review and decision-making process. He coordinates the day-to-day management of Large Cap Fundamental Value, Large Cap Diversified Value, Small Cap Diversified Value and Global Value portfolios, as well as represents these strategies to current and prospective clients. He also provides expertise and insight into the capital goods, energy and technology sectors. Prior to joining the firm, Mr. Peters was an analyst in the corporate finance department of an investment banking firm.

 

Scott Rosenthal, Portfolio Manager

 

In his role as portfolio manager, Mr. Rosenthal plays an integral part in the investment research review and decision-making process. He coordinates the day-to-day management of Global Value and International Value portfolios and represents these strategies to current and prospective clients. He also provides expertise and insight into the capital goods, energy and financials sectors. Prior to joining the firm, Mr. Rosenthal was a member of the investment team at FLAG Capital Management where he worked to identify and evaluate fund-of-funds investment opportunities in venture capital and private equity. He began his career as an analyst with UBS’ Health Care investment banking group. Mr. Rosenthal received his BA in Economics from Boston College and MBA with honors from Columbia Business School.

 

 

 


Statistics & Commentary

Performance

The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance data quoted. The investment return and the principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.

Sector Breakdown as a % of AUM

as of 31/05/2019

Portfolio Characteristics

as of 31/05/2019
Main indicators Fund Index
No of Securities 53 1654
Weighted Average Market Cap ($ bn) 81.0 155.7
Median Market Cap ($ bn) 25.4 12.8
Projected P/E Ratio 9.3x 13.9x
Price / Normal Earnings 6.3x 15.4x
Price / Book 1.0x 2.2x
Price / Sales 0.7x 1.6x
Projected EPS Growth (%) 6.4 6.2
Active share (%) 93.3

Top 10 Position Details

as of 31/05/2019
Security name Sector % AUM
AMERICAN INTERNATIONAL GROUP Financials 5.05
GENERAL ELECTRIC CO Industrials 4.49
WELLS FARGO & CO Financials 3.81
MICROSOFT CORP Information Technology 3.72
GOLDMAN SACHS GROUP INC Financials 3.41
BAE SYSTEMS PLC Industrials 2.95
DISCOVERY INC-C Communication Services 2.87
ORACLE CORP Information Technology 2.66
SERITAGE GROWTH PROP- A REIT Real Estate 2.52
HEWLETT PACKARD ENTERPRISE Information Technology 2.51

Investment Manager's Commentary

as of 31/05/2019

Market Review and Outlook

The MSCI World Index returned -5.8% in May, though it remains up +9.8% since the beginning of the year. Trade fears returned to the forefront after the US government increased tariffs from 10% to 25% on $200 billion worth of Chinese imports into the US. Investors then contemplated reports of potential retaliatory action by China. Fears on slowing global growth weighed on oil prices, as Brent crude fell 11% in the month. As a result, stock prices of energy companies declined disproportionately. Despite the market’s pullback, our general view of the global equity market remains unchanged. The broad market appears close to fully valued but certain sectors/industries remain undervalued. The portfolio is overweight financials, industrials, and energy, which are trading at considerable discounts to intrinsic value. The portfolio is underweight healthcare, consumer staples, materials, and utilities—most stocks in these sectors trade at rich valuations compared to their risk profiles.

The portfolio’s large valuation discount to the index remains intact: 1.0x book value and 6.3x normal earnings compared to 2.2x and 15.4x, respectively, for the MSCI World Index. The portfolio underperformed the MSCI World Index in May. Global growth stocks held up better than global value stocks, which served as a headwind for our value focused investment process. Stock selection in consumer discretionary, energy, and communication services also detracted from performance. The underweight position in healthcare and utilities also hurt as these were among the best-performing sectors in the month. Positive stock selection in healthcare, technology, and industrials helped relative performance. The underweight allocation to technology and materials were modest positive contributors also. The largest individual detractors to relative performance in the month were Whiting Petroleum, Royal Mail, Magna International, CNH industrial, and National Oilwell Varco; the largest positive contributors were WestJet Airlines, AIG, Hitachi, Anthem, and Medtronic.


Facts & Documents

Facts

Fund Domicile: Luxembourg

Management Fee: 0.85% p.a. for I shares

Fund Type: UCITS SICAV

Fund Launch: 28 February 2019

Base Currency: USD

Depositary, Administrator, Transfert Agent: BNP Paribas Securities Services (LU)

Dealing: Each day with a 1-day notice

Cut-off time: 5 pm CET

Management Company: Alma Capital Investment Management

Investment Manager: Hotchkis & Wiley Capital Management, LLC (US)

Identifiers:

Institutional USD Capitalisation share class
ISIN: LU1907586306   Ticker: ALHWGIU LX    Launch: 28 Feb 2019

Documents

SICAV ALMA CAPITAL INVESTMENT FUNDS
  1. Alma Prospectus
KIIDS Other sub-funds and other languages
available upon request