Hotchkis & Wiley, an investment management company, released its first-quarter 2026 investor letter for the “Hotchkis & Wiley Large Cap Fundamental Value Fund.” A copy of the letter can be downloaded here. In Q1 2026, the S&P 500 Index declined by -4.4%, driven by geopolitical uncertainty and AI investment themes. Brent crude oil surged over 100% due to U.S.-Israel strikes on Iran, benefiting the energy sector, which outperformed significantly. Value stocks surpassed growth, with the Russell 1000 Value Index gaining +2.1% compared to -9.8% for the Growth Index. However, the Hotchkis & Wiley Large Cap Fundamental Value Fund lagged, returning 0.36% vs. 2.10% for the Russell 1000 Value Index, driven by its overweight exposure in software and health insurers. However, the energy holdings, which returned +49%, were the portfolio’s top performers. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Hotchkis & Wiley Large Cap Fundamental Value Fund highlighted Olin Corporation (NYSE:OLN). Olin Corporation (NYSE:OLN) is a leading manufacturer and distributor of chemical products that operates through Chlor Alkali Products and Vinyls, Epoxy, and Winchester segments. On April 27, 2026, Olin Corporation (NYSE:OLN) closed at $26.83 per share. One-month return of Olin Corporation (NYSE:OLN) was -10.12%, and its shares gained 21.29% over the past 52 weeks. Olin Corporation (NYSE:OLN) has a market capitalization of $3.05 billion.
Hotchkis & Wiley Large Cap Fundamental Value Fund stated the following regarding Olin Corporation (NYSE:OLN) in its Q1 2026 investor letter:
“Olin Corporation (NYSE:OLN) is one of the largest global producers of chlor-alkali chemicals and chlorine derivatives and the owner of the Winchester ammunition business. Chlorine derivative and caustic soda prices should increase over time as the North American chlor alkali industry faces a tightening 5+ year supply/demand outlook. As the swing producer in North America, Olin should capture more than its share of the industry’s volume improvement off the trough. Olin posted a weak Q4 with low operating rates, weak commodity prices, and a mix of destocking and raw material pressure in the Winchester business. However, the business showed some signs of recovery, as Olin remains focused on matching production to the weaker side of the electrochemical unit (ECU) to optimize value, prioritizing share repurchases, and an investment grade balance sheet remains the target. Olin’s stock price has been strong following Q4 as the Iran conflict has disrupted global chemical supply and driven up caustic soda and epoxy pricing, benefiting Olin.”
Olin Corporation (NYSE:OLN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 46 hedge fund portfolios held Olin Corporation (NYSE:OLN) at the end of the fourth quarter, compared to 48 in the previous quarter. While we acknowledge the risk and potential of Olin Corporation (NYSE:OLN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Olin Corporation (NYSE:OLN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Olin Corporation (NYSE:OLN) and shared the list of high growth chemical stocks to buy. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
