Los Angeles-based investment firm, HOTCHKIS & WILEY, recently disclosed its portfolio updates for the second quarter of 2023, as per its 13F filing. Founded in 1980, the firm has built a reputation for identifying and investing in undervalued companies with significant potential for appreciation. This strategy has been the cornerstone of their investment philosophy, guiding their decisions and shaping their portfolio.
Portfolio Overview
As of June 30, 2023, HOTCHKIS & WILEY's portfolio contained 487 stocks, with a total value of $26.93 billion. The firm's top holdings for the quarter were FFIV (3.24%), AIG (3.23%), and WFC (3.22%).
Key Transactions of the Quarter
The firm's top three trades of the quarter involved Oracle Corp (ORCL, Financial), U.S. Bancorp (USB, Financial), and GE HealthCare Technologies Inc (GEHC, Financial).
Oracle Corp (ORCL, Financial)
HOTCHKIS & WILEY reduced their investment in Oracle Corp (ORCL) by 3,182,134 shares, impacting the equity portfolio by 1.14%. The stock traded for an average price of $103.23 during the quarter. As of August 15, 2023, Oracle Corp had a market cap of $318.60 billion and a stock price of $117.3784, reflecting a 51.43% return over the past year. GuruFocus rates the company's financial strength and profitability at 4/10 and 9/10, respectively. Oracle Corp's valuation ratios include a price-earnings ratio of 38.36, a price-book ratio of 293.45, a PEG ratio of 4.51, a EV-to-Ebitda ratio of 21.00, and a price-sales ratio of 6.50.
U.S. Bancorp (USB, Financial)
The firm purchased 5,922,710 shares of U.S. Bancorp (USB), bringing their total holding to 16,116,140 shares. This transaction had a 0.73% impact on the equity portfolio. The stock traded for an average price of $32.38 during the quarter. As of August 15, 2023, U.S. Bancorp had a market cap of $58.68 billion and a stock price of $37.69, reflecting a -19.26% return over the past year. GuruFocus rates the company's financial strength and profitability at 3/10 and 6/10, respectively. U.S. Bancorp's valuation ratios include a price-earnings ratio of 10.44, a price-book ratio of 1.25, a PEG ratio of 3.87, and a price-sales ratio of 2.11.
GE HealthCare Technologies Inc (GEHC, Financial)
HOTCHKIS & WILEY reduced their investment in GE HealthCare Technologies Inc (GEHC) by 2,088,253 shares, impacting the equity portfolio by 0.66%. The stock traded for an average price of $79.83 during the quarter. As of August 15, 2023, GE HealthCare Technologies Inc had a market cap of $32.06 billion and a stock price of $70.485, reflecting a 0.00% return over the past year. GuruFocus rates the company's financial strength and profitability at 5/10 and 5/10, respectively. GE HealthCare Technologies Inc's valuation ratios include a price-earnings ratio of 19.03, a price-book ratio of 4.51, a EV-to-Ebitda ratio of 11.97, and a price-sales ratio of 1.69.
In conclusion, HOTCHKIS & WILEY's Q2 2023 portfolio update reflects the firm's continued commitment to its investment philosophy of identifying undervalued companies with significant growth potential. The firm's key transactions for the quarter provide valuable insights into their strategic investment decisions.
