Alma Hotchkis & Wiley Global Value Equity Fund
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 |
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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 $35 billion
Key Persons
Scott McBride, CFA Portfolio Manager and President
Scott McBride is President of Hotchkis & Wiley and serves as a portfolio manager on the Large Cap Fundamental Value, Large Cap Diversified Value and Global Value portfolios. He covers technology companies and is a member of the consumer, technology, healthcare and financial sector teams. Prior to joining the firm in 2002, Mr. McBride was an associate consultant with Deloitte Consulting and worked as an investment marketing analyst with Fidelity Investments. Mr. McBride, a CFA charterholder, received his BA in Economics from Georgetown University and MBA from Columbia University
Patrick Meegan, CPA Portfolio Manager
Patrick Meegan serves as a portfolio manager on the High Yield portfolios. He is a member of the financials and healthcare sector teams. 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 from California State University, Fullerton and his MBA from the Anderson School of Management at the University of California, Los Angeles.
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 31/03/2022Market Review and Outlook
The MSCI World Index returned +7.9% in July. Growth outperformed value during the month, with the MSCI World Growth Index rising +11.5% versus an increase of +4.6% for the MSCI World Value Index.
The June US CPI report (released in July) showed an 9.1% increase year-over-year, slightly higher than consensus expectations. Inflation data in the Eurozone and United Kingdom also remain elevated, prompting additional hawkishness out of central banks. The FOMC announced a second consecutive 75 basis point increase in the Fed Funds rate at its July meeting and the European Central Bank raised interest rates for the first time in 11 years. We continue to believe value stocks are better insulated from the threat of higher inflation and interest rates than growth stocks. Meanwhile, real US GDP contracted at a 0.9% rate in the second quarter, which follows a 1.6% decline in the first quarter of 2022.
The Hotchkis & Wiley Global Value portfolio underperformed the MSCI World Index in July. Stock selection in technology and consumer discretionary detracted, as did the overweight in financials. Conversely, the underweight positions in healthcare and consumer staples, along with the stock selection in communication services and industrials, helped to offset some of the detractors. The largest positive contributors to relative performance in the month were General Electric, Citigroup, Magna International, General Motors, and Cummins; the largest detractors were Euronet Worldwide, Accor, Suncor Energy, AIG, and Vodafone Group.
Fund
The Hotchkis & Wiley Global Value portfolio outperformed the MSCI World Index in the second quarter of 2022 but underperformed the MSCI World Value Index. Relative to the primary benchmark, overweights and stock selection in financials and energy contributed positively to performance. Positive stock selection and underweights in consumer discretionary and technology also helped. Stock selection in communication services detracted from performance, as did our underweights in health care, consumer staples, and utilities. The largest positive contributors to relative performance in the quarter were Cenovus Energy, Suncor Energy, BAE Systems, Elevance Health, and FedEx; the largest detractors were General Electric, Warner Bros Discovery, F5, General Motors, and Credit Suisse.
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)
Sustainability-related disclosures:
The information related to the integration of sustainability risks and to the potential adverse sustainability impacts at the sub-fund level can be found in the prospectus of the Fund.
Identifiers:
Institutional USD Capitalisation share class
ISIN: LU1907586306
Ticker: ALHWGIU LX
Launch: 28 Feb 2019
Documents
available upon request