Hotchkis & Wiley Fund Beats Index Despite Yearly Underperformance
Hotchkis & Wiley Fund Outperforms Index in Q4 2024 Despite Yearly Underperformance
NEW YORK, NY – Hotchkis & Wiley’s Large Cap Fundamental Value Fund edged out the Russell 1000 Value Index in the fourth quarter of 2024, posting a -0.91% return compared to the index's -1.98% loss. However, the fund underperformed the index for the full year, returning 12.81% versus the index's 14.37%.
The fund's fourth-quarter investor letter highlighted General Motors Company (GM) as a key holding. GM reported strong third-quarter earnings and improved free cash flow guidance. Hotchkis & Wiley cited GM's leading market positions, attractive valuation, strong free cash flow generation, and management's commitment to share repurchases as reasons for their investment. At the close of March 28, 2025, GM stock traded at $46.68 per share, with a market capitalization of $46.447 billion. Over the previous 52 weeks, shares gained 2.82%, although the one-month return was -1.48%. While 68 hedge funds held GM stock at the end of the fourth quarter, up from 64 in the third quarter, the fund managers expressed greater confidence in the potential of AI stocks.
While the Hotchkis & Wiley fund's performance is discussed, other market analyses were also reviewed. Bitcoin experienced pressure in recent months due to waning investor risk appetite and reduced enthusiasm following the Trump election. One analyst noted no positions in any mentioned companies and no plans to initiate any in the next 72 hours. Separately, Gray Media (GTN) experienced significant recent searches, with its stock returning 17.1% over the past month, outperforming the Zacks S&P 500 composite and its industry. Zacks Equity Research highlighted Gray Media's Zacks Rank #2 (Buy) rating, based on positive earnings estimate revisions, despite projected losses for the current quarter and fiscal year. While projected revenue growth is positive for the next fiscal year, the company surpassed EPS estimates only once and consensus revenue estimates twice over the last four quarters. Gray Media's valuation metrics, as assessed by Zacks Value Style Score, earned an "A" grade, suggesting undervaluation compared to peers.
NEW YORK, NY – Hotchkis & Wiley’s Large Cap Fundamental Value Fund edged out the Russell 1000 Value Index in the fourth quarter of 2024, posting a -0.91% return compared to the index's -1.98% loss. However, the fund underperformed the index for the full year, returning 12.81% versus the index's 14.37%.
The fund's fourth-quarter investor letter highlighted General Motors Company (GM) as a key holding. GM reported strong third-quarter earnings and improved free cash flow guidance. Hotchkis & Wiley cited GM's leading market positions, attractive valuation, strong free cash flow generation, and management's commitment to share repurchases as reasons for their investment. At the close of March 28, 2025, GM stock traded at $46.68 per share, with a market capitalization of $46.447 billion. Over the previous 52 weeks, shares gained 2.82%, although the one-month return was -1.48%. While 68 hedge funds held GM stock at the end of the fourth quarter, up from 64 in the third quarter, the fund managers expressed greater confidence in the potential of AI stocks.
While the Hotchkis & Wiley fund's performance is discussed, other market analyses were also reviewed. Bitcoin experienced pressure in recent months due to waning investor risk appetite and reduced enthusiasm following the Trump election. One analyst noted no positions in any mentioned companies and no plans to initiate any in the next 72 hours. Separately, Gray Media (GTN) experienced significant recent searches, with its stock returning 17.1% over the past month, outperforming the Zacks S&P 500 composite and its industry. Zacks Equity Research highlighted Gray Media's Zacks Rank #2 (Buy) rating, based on positive earnings estimate revisions, despite projected losses for the current quarter and fiscal year. While projected revenue growth is positive for the next fiscal year, the company surpassed EPS estimates only once and consensus revenue estimates twice over the last four quarters. Gray Media's valuation metrics, as assessed by Zacks Value Style Score, earned an "A" grade, suggesting undervaluation compared to peers.
