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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: seek current income and long-term capital appreciation by investing in a 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 a SEC-regulated, Los Angeles-based investment adviser founded in 1980, specialised in value equity and high yield bond strategies

  • Employee owned firm: 90% of the investment team and 67% of all employees own equity
  • Investment team has over 23 years average investment experience and 15 years average tenure at Hotchkis & Wiley
  • Hotchkis & Wiley manages $30 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.

Portfolio Characteristics

Top 10 Position Details

Investment Manager's Commentary

as of 31/01/2020

Market Review and Outlook

The MSCI World Index declined -8.5% in February. It was up about +4% before Coronavirus developments prompted a fear-driven market selloff. The MSCI World Index declined nearly -12% over the last 7 trading days in February. Global growth outperformed global value over the course of the month but all the outperformance came before the market’s retreat—the value and growth indices declined similarly during the selloff. All sectors declined during the broad-based selloff. Communication services, healthcare, and real estate declined the least over the course of the month, while energy, materials, and financials declined the most. Brent crude oil declined -13% in the month to finish at $50.52/barrel and the 10-year US Treasury yield declined to an all-time low of less than 1.2%.

 

Thus far, the Coronavirus’ impact on the global economy has been material but difficult to pinpoint; its forward-looking impact is even more difficult to estimate. Labor markets, trade, consumer confidence, manufacturing, and other important facets of the global economy are each affected, which could spark central bank responses. Ultimately, we do not know the duration or severity of the outbreak, but we have learned from experience that remaining disciplined is key navigating challenging environments—the stability and experience of our team plays an important role in facilitating discipline and patience. We remain focused on investing in companies with strong balance sheets and robust business models capable of withstanding a prolonged economic downturn. Large, rapid selloffs are painful but moving away from equities or other “risk assets” during such periods often backfires. We believe that such emotion-driven markets are the most likely market type to ignore underlying fundamentals and valuation, particularly given the proliferation of passive ETFs and quant strategies. We believe business quality, balance sheets, and valuations matter, and that positioning the portfolios in companies that score well on these metrics will yield superior results for our investors.

Fund

The portfolio underperformed the MSCI World Index in February. Global value underperformed global growth causing the underperformance versus the broad benchmark; the portfolio performed in line with the MSCI World Value Index. Nearly one-third of the portfolio trades at a discount to book value compared to ~7% of the index—this group underperformed the broad benchmark considerably during the month. The overweight and stock selection financials hurt relative performance in the period. Stock selection in communication services and the overweight positions in energy and industrials also hurt. Positive stock selection in technology helped relative performance. The largest detractors to relative performance were Kosmos Energy, AIG, Royal Mail, General Electric, and Wells Fargo; the largest positive contributors were Credito Valtellinese, CNH Industrial, Frank’s International, Ericsson, and Tokio Marine.


Facts & Documents

Facts

Fund Domicile: Luxembourg

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

PROSPECTUS
  1. Alma Prospectus
KIIDS Other sub-funds and other languages
available upon request