Hotchkis & Wiley Q1 2026 13F Holdings and Activity Report

I. Institutional Overview

Hotchkis & Wiley, a prominent name in the realm of institutional asset management, stands as a sophisticated practitioner of value-oriented investment strategies. As of the portfolio snapshot dated March 31, 2026, the firm manages a substantial reported portfolio value of approximately $32.33 billion . This scale places the institution among the significant "smart money" players in the global financial markets, possessing enough capital to influence liquidity while maintaining the agility required to execute nuanced sector rotations. The current reported value reflects a firm that is deeply integrated into the institutional fabric of Wall Street, operating with a mandate that likely spans across pension funds, endowments, and high-net-worth individual accounts.

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II. Sector Allocation Analysis

The top three sectors— Technology, Financials, and Energy —collectively account for 50.42% of the total portfolio. This concentration level suggests a "balanced-aggressive" stance. While the firm is diversified across 460 stocks, more than half of its capital is tied to the fortunes of these three critical pillars of the economy. This allocation reveals a sophisticated macro judgment: the firm is betting on the continued digital transformation of the enterprise (Technology), the resilience of the credit and capital markets (Financials), and the structural supply-demand imbalances in the global power and fuel markets (Energy).

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 surged to the number one position in the portfolio, representing 4.27% of total assets. The institution made a massive move this quarter, increasing its share count by 57.69% . This is a classic "conviction holding" transition. Previously a significant position, it has now been elevated to the primary bet. The logic here is profound: Workday is the dominant player in cloud-based human capital management (HCM) and financial management software. By increasing this position so aggressively, Hotchkis & Wiley is signaling a belief that Workday is at an inflection point in its growth and profitability. Despite the massive share increase, the portfolio weight actually decreased slightly by 0.07%, which indicates that the broader portfolio grew or that Workday’s stock price faced some downward pressure during the quarter, allowing the institution to "buy the dip" with conviction. This is a bet on the "back-office revolution," where enterprises are forced to upgrade their legacy systems to remain competitive in a digital-first world.

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IV. Major Buys/Additions

The addition of over $500 million to Workday is the defining move of the quarter. This is not a speculative entry; it is a massive doubling down on a proven leader. The motivation here is likely a " growth acceleration bet ." Hotchkis & Wiley’s analysts likely see Workday’s expansion into the "Financial Management" suite as a second act that will drive margins higher. In a world where labor costs are rising, software that manages people and money more efficiently becomes indispensable. By making this their largest addition, the institution is positioning itself at the heart of the corporate digital transformation.

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 54.04% reduction in NOV Inc. is a massive move, realizing over $330 million in capital. NOV is a major provider of equipment and components for the oil and gas industry. This qualifies as a " Major Strategic Contraction ." The institution appears to be significantly cooling on the "oilfield services" sub-sector. While they still hold a position, cutting it by more than half suggests a belief that the peak of the current cycle for drilling equipment may have passed, or that capital is better deployed in higher-margin software areas. This is a clear "Sell A to Buy B" signal, where energy equipment capital is flowing into enterprise tech.

The complete exit from HCA Healthcare, realizing over $207 million, is a major "Strategic Retreat." HCA is the largest private hospital operator in the U.S. Exiting this position entirely after a 5-year holding period suggests a fundamental break in the investment thesis. Perhaps the institution perceives a peak in hospital margins or is concerned about long-term labor cost pressures in the nursing and medical staff sectors. This is a "logical clearing" of a large-cap healthcare name to make room for more specialized healthcare bets like Labcorp or Zimmer Biomet.

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

Recycling Cyclical Capital : The institution is systematically harvesting profits from the "physical" economy— NOV (energy equipment) , FedEx (logistics) , and RTX (defense) —to fund its digital expansion. This suggests a belief that while the physical economy is stable, the real "alpha" (excess return) will come from the digital transformation of those physical industries. 3. Quality Healthcare over Volume Healthcare : By exiting HCA (hospitals) and adding to Labcorp (diagnostics) and Zimmer Biomet (implants) , the firm is moving away from "volume-based" healthcare providers toward "specialized-tech" healthcare. They are favoring companies with unique intellectual property or dominant infrastructure over those that simply manage physical facilities and labor.

Institution-Specific Risks : Hotchkis & Wiley manages over $32 billion. Their need for liquidity means they often have to buy and sell over weeks or months, which is different from a retail investor who can move in and out of a position in seconds. Their "value" mandate may also force them to hold stocks that are underperforming for years before the "catalyst" they anticipate actually occurs. An individual investor following these moves might lack the capital or the patience to wait out these long-term institutional theses.

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.