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 global 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 $1 billion
  • The fund invests primarily in companies located in developed countries, with at least 40% outside the U.S. Emerging markets: up to 20%


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 $31 billion.

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 30/08/2019

Portfolio Characteristics

as of 30/08/2019
Main indicators Fund Index
No of Securities 56 1650
Weighted Average Market Cap ($ bn) 86.0 169.8
Median Market Cap ($ bn) 26.0 12.9
Projected P/E Ratio FY2 9.7x 14.7x
Price / Normal Earnings 6.9x 16.2x
Price / Book 1.0x 2.3x
Price / Sales 0.7x 1.6x
Projected EPS Growth (%) 6.1 6.2
Active share (%) 92.6

Top 10 Position Details

as of 30/08/2019
Security name Sector % AUM
AMERICAN INTERNATIONAL GROUP Financials 4.64
GENERAL ELECTRIC CO Industrials 4.52
WELLS FARGO & CO Financials 4.05
GOLDMAN SACHS GROUP INC Financials 3.72
MICROSOFT CORP Information Technology 3.47
BAE SYSTEMS PLC Industrials 2.95
CNH INDUSTRIAL NV Industrials 2.90
DISCOVERY INC-C Communication Services 2.65
MAGNA INTERNATIONAL INC Communication Discretionary 2.57
SOCIETE GENERALE SA Financials 2.57

Investment Manager's Commentary

as of 30/08/2019

Market Review and Outlook

The MSCI World Index returned -2.1% in August and is up +15.2% since the beginning of the year. Tariff increases by both China and the US have accelerated investor concern about economic growth. Geopolitical uncertainty throughout Europe, most notably the UK’s unresolved path to exit the European Union, has further fueled investor apprehension. Despite marketplace fears, corporate earnings remain strong. We continue to believe that the best way to invest, irrespective of the macroeconomic landscape, stage of the business cycle, or geography, is to own good businesses at attractive valuations. Consistent with this view, the portfolio trades at a large valuation discount to the index. The portfolio trades at 1.0x book value and 6.9x normal earnings compared to 2.3x and 16.2x, respectively, for the MSCI World Index.

Fund

The portfolio underperformed the MSCI World Index in August. The portfolio’s valuation discount hurt relative performance, as roughly 40% of the portfolio trades at a discount to book value compared to less than 10% for index. Index stocks in this group lagged considerably, declining more than -7% in the month. The overweight position in financials, along with stock selection in industrials, energy, and consumer discretionary hurt relative performance in the month. The underweight position in materials helped. The largest detractors to relative performance in the period were Whiting Petroleum, General Electric, Frank’s International, National Oilwell Varco, and AIG; the largest positive contributors were Vodafone, CNH Industrial, Societe Generale, Kosmos Energy, 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