Alma Hotchkis & Wiley US Large Cap Value Equity Fund

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Overview

  • Alma Hotchkis & Wiley US Large Cap Value Equity Fund seeks current income and long-term capital growth by investing in a concentrated portfolio of undervalued large US companies.
  • Management of the fund is delegated to Hotchkis & Wiley.

Share Class

NAV

Cumulative Performance (%)

Fund Inception 6 August 2014

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 growth by investing in a concentrated portfolio of large US 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 60 securities and generally invests in companies with a market capitalization above $3 billion
  • Investment strategy mirrors the Large Cap Fundamental Value strategy managed by the Investment manager since 1980


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
  • George Davis, the CEO of Hotchkis & Wiley and senior portfolio manager of the fund, has over 30 years of investment experience.
  • Hotchkis & Wiley manages $26 billion

Key Persons

George Davis, Jr. CEO, Portfolio Manager and Principal

George Davis serves as CEO and is responsible for setting the firm’s strategic direction. Mr. Davis also serves as a portfolio manager on the Large Cap Fundamental Value and Large Cap Diversified Value portfolios.  He is a member of the capital goods and financials sector teams. Prior to joining Hotchkis & Wiley in 1988, Mr. Davis was an assistant to the senior partner of RCM Capital Management. He began his career in equity research with internships at Cramer, Rosenthal & McGlynn and Fidelity Management & Research. Mr. Davis received his BA in Economics and History and MBA from Stanford University

 

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.

 

Patty McKenna, CFA Portfolio Manager and Principal

Patty McKenna serves as a portfolio manager on the Large Cap Fundamental Value and Large Cap Diversified Value portfolios. She covers consumer companies and is a member of the consumer and healthcare sector teams. Prior to joining the firm, Ms. McKenna was an equity analyst at Trust Company of the West. Before entering the field of investment management, she worked for five years in corporate finance at Bankers Trust and then at Fieldstone Private Capital Group. Ms. McKenna began her career as a forensic accountant in 1983. Ms. McKenna, a CFA charterholder, received her BA in Economics from Stanford University and MBA from Harvard Business School.

 

Judd Peters, CFA Portfolio Manager

Judd Peters serves as a portfolio manager on the Large Cap Fundamental Value, Large Cap Diversified Value and Small Cap Diversified Value portfolios. He covers utilities companies and is a member of the capital goods, energy and technology sector teams. Prior to joining the firm, Mr. Peters was an analyst in the investment banking division of Wedbush Morgan Securities. Mr. Peters, a CFA charterholder, received his BA in Mathematics and a BS in Biochemistry from University of California, San Diego.


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 29/05/2020

Market Review and Outlook

The S&P 500 Index declined -2.7% in October. A rise in COVID cases and the contentious US election appeared to fuel investor apprehension, overshadowing solid corporate earnings. Economic data played a muted role in market performance as most noteworthy reports were near consensus estimates. Overall housing and consumer spending data were slightly better than consensus expectations, while employment and manufacturing data were mixed. The 10-year treasury yield increased from 0.69% to 0.88% in the month. We generally view a rise in rates as better (or less bad) for value than for growth. The Russell 1000 Value Index declined -1.3% compared to -3.4% for the Russell 1000 Growth Index in the month. Utilities were positive, and financials held up better than the overall market—both comprise much larger portions of the value index than the growth index.

Fund

The portfolio outperformed the Russell 1000 Value Index in October. Positive stock selection in industrials, consumer discretionary, financials, and technology drove the outperformance in the month. The underweight exposure to utilities and overweight exposure to energy detracted from performance modestly. The largest positive contributors to relative performance in the month were General Electric, AIG, General Motors, Magna International, and Harley-Davidson; the largest detractors were Wells Fargo, GlaxoSmithKline, Hess, Oracle, and Hewlett Packard Enterprise.


Facts & Documents

Facts

Fund Domicile: Luxembourg

Fund Type: UCITS SICAV

Fund Launch: 6 August 2014

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)

Fund Managers: George Davis, Scott McBride, Patty McKenna, Patrick Meegan, Judd Peters

Countries where the fund is registered:
France, Germany, Luxembourg, Switzerland, United Kingdom, Austria

Identifiers:

Institutional USD Capitalisation share class
ISIN: LU0963547111   Ticker: ALDCPBI LX    Launch: 6 Aug 2014

Retail USD Capitalisation share class
ISIN: LU0963547970   Ticker: ALDCBRU LX    Launch: 21 Nov 2017

Documents