Hotchkis & Wiley Large Cap Fundamental Value Fund Q1 2026 Investor Letter

Hotchkis & Wiley, an investment management company, released its first-quarter 2026 investor letter for the “Hotchkis & Wiley Large Cap Fundamental Value Fund.” 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.

A copy of Hotchkis & Wiley Large Cap Fundamental Value Fund Q1 2026 investor letter can be downloaded here.