Hotchkis & Wiley Q4 2025 13F Holdings and Activity Report

I. Institutional Overview

The sheer breadth of this portfolio—460 holdings—suggests a sophisticated approach to risk management and diversification. Unlike "concentrated" hedge funds that might place massive bets on 15 to 20 names, H&W operates with a broader net. However, this diversification is not a sign of indecision. Rather, it reflects a "Value-at-Scale" philosophy. By spreading capital across nearly 500 positions, the firm mitigates the idiosyncratic risk of any single company’s failure while still maintaining a disciplined focus on undervalued assets across various sectors. The institutional "psychological portrait" revealed here is one of prudent conviction . They are not afraid to take large positions in their top ideas—as evidenced by their billion-dollar stakes in Workday and F5—but they balance these "ballast stones" with a vast array of mid-sized and smaller positions that provide a smoothed return profile.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

II. Sector Allocation Analysis

The top three sectors— Financials, Technology, and Healthcare —account for a combined 51.36% of the total portfolio. This concentration level suggests a "barbell" strategy. On one side, the 20.04% allocation to Financials indicates a strong belief in the resilience of the banking and insurance sectors. In a typical macro environment, a heavy weight in Financials suggests the institution is comfortable with the current interest rate regime, as banks often benefit from healthy net interest margins, and insurance companies (like AIG, a top holding) benefit from higher yields on their float.

A nuanced trend visible in the data is the movement within the Technology and Communication sectors. While they reduced their stake in Alphabet (GOOGL), they significantly increased positions in Workday (WDAY) and Salesforce (CRM). This may indicate a strategic pivot: moving away from the "infrastructure and search" layer of the AI trade toward the "application and execution" layer. H&W seems to be betting that the real long-term value in the current tech cycle will be captured by enterprise software platforms that can successfully integrate AI to drive productivity for their corporate clients.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

III. Top 10 Holdings Deep Dive

Workday has ascended to the #1 spot in the portfolio, with a total value of $1.45 billion . This is a classic "Conviction Holding" for H&W. Despite being a high-growth SaaS company, Workday fits the value mandate through its dominant market position in HCM (Human Capital Management) and its increasingly attractive free cash flow profile.

Conclusion of Top 10 Analysis : The Top 10 is not a static list of "cheap" stocks. It is a dynamic engine of $9.6 billion (nearly 29% of the portfolio) that is increasingly leaning into software platforms (WDAY, CRM), infrastructure (FFIV, ERIC), and financial restructuring (C, AIG). This suggests a portfolio that is positioned for a "soft landing" where corporate spending on efficiency (Tech) and financial stability (Banks) are the primary drivers of returns.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

IV. Major Buys/Additions

The additions show a clear clustering in Enterprise Software (WDAY, CRM, FFIV) and Defensive Value (MDLZ, CMCSA, D) . This suggests that H&W is recycling capital from "old value" (like Warner Bros Discovery and Goldman Sachs—see Section V) into "new value"—companies that have stronger technological moats or more resilient consumer demand.

By increasing positions in WDAY and CRM, H&W has increased the "offensiveness" of the portfolio. These stocks have higher betas than traditional value stocks. However, by balancing this with MDLZ and Dominion Energy (D), they have maintained a disciplined risk profile. The overall move suggests a belief that "Quality Value" will outperform "Deep Value" in the coming quarters. They are willing to pay a slightly higher multiple for companies with guaranteed growth and high margins.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

V. Major Sells and Exits

The data reveals a clear "Capital Loop." H&W recouped approximately $1.2 billion from the top 6 reductions/exits listed above. This almost perfectly matches the $1.3 billion they deployed into the top 6 additions (MDLZ, CMCSA, CRM, PPG, WDAY, FFIV).

The exit from Goldman Sachs (GS) after 10 years and Warner Bros Discovery after 3.5 years sends a strong signal that H&W is wary of "complex" financial and media stories. They are simplifying the portfolio, favoring companies with clearer, more predictable paths to cash flow generation. The reduction in Medtronic (MDT) and NOV Inc. further suggests a retreat from companies that have struggled to maintain consistent growth in the current environment.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

VI. Investment Insights and Risk Warnings

Ruthless Rationalization of Media : The total exit from WBD and the reduction in Alphabet suggest that H&W no longer views "content and eyeballs" as a safe value play. The "streaming wars" and "AI search disruption" have introduced too much structural tail-risk. They prefer the "pipes" (Comcast, F5) over the "content." 3. The "Staple" Safety Net : The massive entry into Mondelez (MDLZ) indicates a belief that the market may face a period of volatility where "boring" earnings from snacks and chocolate will be highly prized. It’s a tactical "insurance policy" for the portfolio. 4. Financial Restructuring over Growth : By holding Citigroup and AIG while exiting Goldman Sachs, H&W is favoring "turnaround" stories with deep asset value over "transaction-heavy" investment banks. They are looking for "hidden value" that can be unlocked through management action.

Reference Value for Investors : For individual investors, the H&W report suggests that the "easy money" in mega-cap tech (like Alphabet) may have been made, and the next phase of the market will favor enterprise-level AI adopters (WDAY, CRM) and resilient consumer brands (MDLZ) . However, the complete exit from WBD serves as a warning: "cheap" stocks can stay cheap if their industry structure is fundamentally broken.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

Sources and limitations

This report uses public U.S. Securities and Exchange Commission Form 13F disclosures and structured data maintained by 13F Hub. A 13F filing is a quarter-end snapshot of reportable long positions, is normally published with a delay, and does not disclose every short position, cash balance, bond, derivative, or non-U.S. asset.

Narrative content is prepared from the same-period SEC disclosure and 13F Hub structured data, then checked before publication. This material is for research and education, not personalized investment advice.