Hotchkis & Wiley Capital Management
Background
Founded in 1980 by John Hotchkis and George Wiley, Hotchkis & Wiley Capital Management is a Los Angeles-based investment management firm specializing in value investing. The firm is dedicated to identifying and investing in undervalued securities with significant appreciation potential. As of August 31, 2024, Hotchkis & Wiley managed approximately $33.8 billion in assets.
Key Strategic Focus
Hotchkis & Wiley employs a disciplined, research-intensive, fundamental approach to value investing. The firm's investment philosophy centers on purchasing stocks at substantial discounts to intrinsic value, aiming to generate superior long-term returns. Their strategies encompass value equity investments across various market capitalizations and high-yield credit. The investment team, averaging 26 years of industry experience, emphasizes long-term investment horizons, focusing on fundamental drivers of a company's value rather than short-term performance.
Financials and Funding
As of August 31, 2024, Hotchkis & Wiley managed approximately $33.8 billion in assets under management (AUM). The firm's estimated annual revenue is $18.6 million, with an estimated revenue per employee of $227,000. The firm is independently owned, with a majority interest held by employees, aligning their interests closely with those of their clients.
Pipeline Development
Hotchkis & Wiley's investment strategies include managing separate accounts for institutional clients, such as public plans, corporations, non-profits, unions, and sovereign wealth funds. Additionally, they have sub-advisory relationships with respected asset managers. The firm offers nine actively managed value equity portfolios and one high-yield portfolio for institutional and individual clients.
Technological Platform and Innovation
The firm's investment process is team-based, utilizing primarily in-house, fundamental research. The investment research staff is organized by industry and sector, supporting all accounts managed in each of Hotchkis & Wiley's investment strategies. Portfolio managers ensure that the best thinking of the investment team is reflected in the target portfolios.
Leadership Team
The leadership team at Hotchkis & Wiley comprises experienced professionals with extensive backgrounds in investment management. Key members include:
- Scott McBride: Chief Executive Officer and Portfolio Manager.
- George Davis: Chairman and Portfolio Manager.
- David Green: President and Portfolio Manager.
- Judd Peters: Portfolio Manager, joined the investment team in 1999.
- Ryan Thomes: Portfolio Manager, joined the investment team in 2008.
Leadership Changes
As of the available information, there have been no recent significant changes or appointments within the company's leadership team.
Competitor Profile
Market Insights and Dynamics
The investment management industry is highly competitive, with numerous firms offering a variety of investment strategies to institutional and individual clients. The market is characterized by a focus on delivering superior returns, client service, and innovative investment solutions.
Competitor Analysis
Hotchkis & Wiley's competitors include firms such as Epoch Investment Partners Inc., Calamos Advisors LLC, and Eagle Asset Management Inc., each managing assets in the range of $27 billion to $34 billion. These firms offer similar investment strategies, including value equity and fixed income portfolios, and compete for institutional and individual clients seeking value-oriented investment management services.
Strategic Collaborations and Partnerships
Hotchkis & Wiley maintains sub-advisory relationships with respected asset managers, enhancing their market position and expanding their capabilities. These collaborations allow the firm to offer a broader range of investment solutions to their clients.
Operational Insights
The firm's independent ownership structure, with a majority interest held by employees, creates a strong alignment of interests with clients. This structure fosters a culture of accountability and long-term commitment to client success. The experienced investment team, averaging 26 years in the industry, contributes to the firm's stability and consistent investment approach.
Strategic Opportunities and Future Directions
Hotchkis & Wiley's commitment to a disciplined value investment philosophy positions the firm to capitalize on market inefficiencies and identify undervalued securities with significant appreciation potential. The firm's focus on long-term investment horizons and fundamental research supports their objective of exceeding client expectations in both investment performance and client service.
Contact Information
For more information, visit Hotchkis & Wiley's official website:
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