Hotchkis & Wiley's Q4 2022 13F filing reveals changes in top holdings, including increased investments in Microsoft and Workday.

Hotchkis & Wiley Capital Management LLC is a Los Angeles-based investment advisor that manages more than $35 billion in assets. The firm uses a fundamental, value-oriented investment approach to seek out undervalued companies that have strong business models and long-term growth potential. The fund recently filed its 13F for the fourth quarter of 2022, showing changes in its holdings from the previous quarter. Here’s a breakdown of the changes:

Top holdings:

The top three holdings of the fund for Q4 2022 were unchanged from the previous quarter. General Electric (GE) remained the largest holding, followed by Citigroup (C), and Wells Fargo (WFC). The fund reduced its holdings in GE by 5%, from 16.59 million shares in Q3, to 15.72 million shares in Q4.

Microsoft (MSFT):

Hotchkis & Wiley increased its holdings in Microsoft by 15%, from 2.81 million shares to 3.23 million shares. Microsoft is the world’s largest software maker and a dominant player in cloud computing services. The stock has been a top performer in recent years, and the fund’s increased investment reflects its confidence in the company’s long-term growth potential.

American International Group (AIG):

The fund reduced its holdings in AIG, one of the world’s largest insurance companies, by 22%, from 15.18 million shares to 11.91 million shares. The stock has been under pressure in recent years due to low interest rates and increased competition in the industry. The fund may have reduced its holdings in AIG to free up capital for other investments.

Workday Inc (WDAY):

Hotchkis & Wiley increased its holdings in Workday, a cloud-based provider of human resources software, by 13%, from 2.24 million shares to 2.53 million shares. Workday has been a top performer in the software space, and its cloud-based software offerings are gaining in popularity as businesses shift more of their operations to the cloud.

Oracle Corp (ORCL):

The fund reduced its holdings in Oracle, a provider of enterprise software, by 12%, from 9.32 million shares to 8.16 million shares. Oracle has been facing increased competition from cloud-based software providers and may be facing headwinds in the years to come.

Other Changes:

Goldman Sachs (GS):

Hotchkis & Wiley reduced its holdings in Goldman Sachs, an investment banking and financial services company, by 17%, from 1.71 million shares to 1.41 million shares. Goldman Sachs has been under pressure in recent years from increased regulation and a challenging market environment.

Alphabet Inc (GOOGL):

The fund increased its holdings in Alphabet, the parent company of Google, by 21%, from 4.11 million shares to 4.98 million shares. Alphabet has been a top performer in the tech space, and its dominance in online search and advertising make it a compelling long-term investment.

Micron Technology Inc (MU):

Hotchkis & Wiley increased its holdings in Micron Technology, a leading manufacturer of memory and storage solutions, by less than 1%, from 2.51 million shares to 2.52 million shares. Micron has been a top performer in the semiconductor space, and its products are vital to the growth of the technology sector.

Conclusion:

Hotchkis & Wiley Capital Management LLC’s Q4 2022 13F filing shows that the firm has made some key changes to its holdings in recent months. The fund appears to be bullish on Microsoft and Workday, two companies that have been showing strong earnings growth and market performance. Meanwhile, the fund appears to have reduced its holdings in AIG and Oracle, two companies that may be facing headwinds in their respective industries. It’s important to remember that 13F filings are just a snapshot of a fund’s holdings at a given point in time, and may not represent the full picture of a fund’s investment thesis or strategy. As always, investors should conduct their own due diligence and consult with a financial professional before making any investment decisions.