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Hotchkis & Wiley was founded in 1980 and has $26.3 trillion in assets under management. It follows two core investment strategies, namely value equity and fixed income.

In value equity, Hotchkis & Wiley follow independent analysis when it comes to identifying securities. They understand that short-term market sentiment can have an impact, so they focus on uncovering businesses that are undervalued compared to their long-term earnings potential. Their patient and rigorous approach has been instrumental in their success, within the value equity landscape.

In fixed income investments, Hotchkis & Wiley adopt a philosophy that revolves around disciplined and research-driven practices. They place emphasis on asset valuation and coverage, which help minimize losses from defaults and provide risk-adjusted returns in the high-yield market. By examining each investment opportunity, Hotchkis & Wiley strives to build a fixed-income portfolio that can navigate market uncertainties while maintaining fundamental strength. Their value equity and fixed-income strategies, underpinned by discipline and research, position the firm as a reliable choice investment.

Investing in Hotchkis & Wiley mutual funds seems to be judicious as of now. Also, mutual funds, in general, diversify portfolios without several commission charges that are mainly associated with stock purchases and trim transaction costs.

We have, thus, chosen three Hotchkis & Wiley mutual funds that investors should buy now for the long term. These funds possess a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000, and expense ratios considerably lower than the category average. So, these funds have provided a comparatively strong performance along with lower fees.

Hotchkis & Wiley Small Cap Value Fund (HWSCX - Free Report) invests the majority of its assets and borrowings in equity securities of small-cap companies, which fall within the range of the Russell 2000 Index.

David E. Green has been the lead manager of HWSCX since Jun 30, 1997. Most of the fund's holdings were in companies like F5, Inc. (6.8%), Stagwell Inc. (5.1%), and Popular, Inc. (3.8%) as of Jun 30, 2023.

HWSCX's 3-year and 5-year annualized returns are 21.3% and 7.4%, respectively. HWSCX has a Zacks Mutual Fund Rank #1. Its net expense ratio is 1.21%.

Hotchkis & Wiley Global Value Fund (HWGAX - Free Report) seeks to invest most of its net assets in companies around the world, including the United States. HWGAX advisors primarily invest in developed countries but may also invest in emerging markets.

Scott Rosenthal has been the lead manager of HWGAX since Dec 30, 2012. Most of the fund's holdings were in companies like Telefonaktiebolaget LMEricsson (4.5%), F5, Inc. (4.5%), and American International Group, Inc. (3.5%) as of Jun 30, 2023.

HWGAX’s 3-year and 5-year annualized returns are 16.8% and 5.8%, respectively. HWGAX has a Zacks Mutual Fund Rank #1. Its net expense ratio is 1.20%.

Hotchkis & Wiley Value Opportunities Fund (HWACX - Free Report) invests in equity securities, including common stock, preferred stock, and convertible securities.

Joseph R. Gatz has been the lead manager of HWACX since Dec 30, 2002. Most of the fund's holdings were in companies like Telefonaktiebolaget LMEricsson (8.2%), F5, Inc. (8.1%), and Microsoft Corp (5.4%) as of Jun 30, 2023.

HWACX's 3-year and 5-year annualized returns are 18.8% and 8.6%, respectively. HWACX has a Zacks Mutual Fund Rank #2. Its net expense ratio is 1.92%.

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