Hotchkis & Wiley Large Cap Disciplined Value Fund’s Q4 2025 Investor Letter

Hotchkis & Wiley, an investment management company, released its fourth-quarter 2025 investor letter for the “Hotchkis & Wiley Large Cap Disciplined Value Fund.” In Q4 2025, the S&P 500 returned 2.7%, bringing its yearly gains to 17.9%. Since the 2007-08 financial crisis, the Index has increased tenfold, achieving positive results in 15 of 17 years. However, high valuations have made investors cautious, particularly with the returns concentrated in a few stocks. Excluding the “Magnificent 7,” the forward PE of the S&P 500 Index aligns with historical averages. In 2025, information technology and communication services led performance, but results varied significantly within those sectors. The firm views the potential of certain software companies to be very attractive. In this environment, the Fund outperformed the Russell 1000 Value Index both in Q4 and over the full calendar year. Positive stock selection contributed to the Fund’s relative performance. Please review the Fund’s top 5 holdings to gain insight into their key selections for 2025.

A copy of Hotchkis & Wiley Large Cap Disciplined Value Fund’s Q4 2025 investor letter can be downloaded here.