Exploring the Strategic Moves in the Fourth Quarter of 2024

HOTCHKIS & WILEY (Trades, Portfolio) recently submitted the 13F filing for the fourth quarter of 2024, providing insights into their investment moves during this period. Incepted in Los Angeles in 1980, Hotchkis and Wiley has focused exclusively on finding and owning undervalued companies that have a significant potential for appreciation. Hotchkis and Wiley are value investors focusing on important investment parameters such as a company's tangible assets, sustainable cash flow, and potential for improving business performance.

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Summary of New Buy

HOTCHKIS & WILEY (Trades, Portfolio) added a total of 6 stocks, among them:

The most significant addition was ConocoPhillips (NYSE:COP), with 2,054,397 shares, accounting for 0.68% of the portfolio and a total value of $203.73 million. The second largest addition to the portfolio was LivaNova PLC (NASDAQ:LIVN), consisting of 499,650 shares, representing approximately 0.08% of the portfolio, with a total value of $23.14 million. The third largest addition was National Energy Services Reunited Corp (NASDAQ:NESR), with 999,160 shares, accounting for 0.03% of the portfolio and a total value of $8.95 million.

Key Position Increases

HOTCHKIS & WILEY (Trades, Portfolio) also increased stakes in a total of 318 stocks, among them:

The most notable increase was Elevance Health Inc (NYSE:ELV), with an additional 532,611 shares, bringing the total to 1,775,612 shares. This adjustment represents a significant 42.85% increase in share count, a 0.65% impact on the current portfolio, with a total value of $655.02 million. The second largest increase was Humana Inc (NYSE:HUM), with an additional 711,981 shares, bringing the total to 1,217,323. This adjustment represents a significant 140.89% increase in share count, with a total value of $308.85 million.

Summary of Sold Out

HOTCHKIS & WILEY (Trades, Portfolio) completely exited 11 of the holdings in the fourth quarter of 2024, as detailed below:

Marathon Oil Corp (MRO): HOTCHKIS & WILEY (Trades, Portfolio) sold all 8,112,234 shares, resulting in a -0.72% impact on the portfolio. Berry Corp (bry) (NASDAQ:BRY): HOTCHKIS & WILEY (Trades, Portfolio) liquidated all 3,334,610 shares, causing a -0.06% impact on the portfolio.

Key Position Reduces

HOTCHKIS & WILEY (Trades, Portfolio) also reduced positions in 141 stocks. The most significant changes include:

Reduced General Motors Co (NYSE:GM) by 6,366,002 shares, resulting in a -36.84% decrease in shares and a -0.95% impact on the portfolio. The stock traded at an average price of $52.49 during the quarter and has returned -16.10% over the past 3 months and -9.45% year-to-date. Reduced Discover Financial Services (NYSE:DFS) by 1,191,714 shares, resulting in a -99.41% reduction in shares and a -0.56% impact on the portfolio. The stock traded at an average price of $164.56 during the quarter and has returned 13.19% over the past 3 months and 13.12% year-to-date.

Story Continues

Portfolio Overview

At the fourth quarter of 2024, HOTCHKIS & WILEY (Trades, Portfolio)'s portfolio included 477 stocks, with top holdings including 4.25% in F5 Inc (NASDAQ:FFIV), 3.25% in Citigroup Inc (NYSE:C), 2.96% in Telefonaktiebolaget L M Ericsson (NASDAQ:ERIC), 2.72% in APA Corp (NASDAQ:APA), and 2.47% in Wells Fargo & Co (NYSE:WFC).

The holdings are mainly concentrated in 11 industries: Financial Services, Technology, Healthcare, Energy, Industrials, Consumer Cyclical, Communication Services, Consumer Defensive, Utilities, Basic Materials, and Real Estate.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus.

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