Hotchkis & Wiley

What Hotchkis & Wiley does

Hotchkis & Wiley is a global investment management firm founded in 1980 by John Hotchkis and George Wiley, headquartered in Los Angeles with a second office in Corona Del Mar housing its High Yield team. The firm is structured as Hotchkis and Wiley Capital Management, LLC, is majority-owned by its employees, and operates with 51–100 staff led by CEO Scott McBride and Executive Chairman George Davis, Jr. Its stated investment approach is bottom-up, fundamental value research applied consistently across market cycles, delivered through nine actively managed value equity strategies spanning US large cap, mid-cap, small cap, global, and international markets, plus one high yield fixed income strategy. Products are distributed via dedicated institutional sales and consultant relations (separate accounts for public plans, corporations, non-profits, unions, and sovereign wealth funds), sub-advisory relationships with other asset managers, financial intermediaries (brokers, RIAs, bank reps, insurance agents) for mutual funds in multiple share classes (A, C, I, Z), and a newly launched SMID Cap Diversified Value ETF (HWSM) on Nasdaq.

Technology and intellectual property are centered on proprietary valuation models and a research-intensive fundamental process refined over 45+ years, with risk controls covering valuation support, financial strength, business-model sustainability, governance, and liquidity. The investment team averages 27 years of industry experience and 20 years of tenure at the firm, and the majority of investment team members are equity owners. Revenue is generated almost entirely through recurring management fees on AUM, with mutual fund net expense ratios ranging from 0.70% to 1.00% across share classes and institutional separate-account fees negotiated per mandate; the firm also offers thought-leadership content via its website, podcasts, industry publications, and conferences to support institutional and intermediary distribution.

Strategically, the firm has emphasized continuity of its value-investing philosophy, formal ESG integration through its 2013 PRI signatory status, and a measured channel expansion into ETFs with the March 2025 HWSM launch.

Name

Hotchkis & Wiley

Legal name

Hotchkis and Wiley Capital Management, LLC

Website

https://hwcm.com

Company type

Private

Founded year

1980

Operating status

Operating

Headcount range

51–100 employees

Short description

Hotchkis & Wiley is a global, employee-owned investment manager founded in 1980 that offers bottom-up, fundamental value equity strategies across US and international markets plus a high yield credit strategy, distributed through separate accounts to institutional clients, mutual funds via financial intermediaries, and the HWSM ETF.

Ownership category

akta.pro rank

Product category

Investment Management

NAICS

Portfolio Management and Investment Advice (52394), Open-End Investment Funds (52591)

SIC

Investment Advice (6282)

akta.pro primary industry

Style Equity — Value (Active) (FSAAAIAH)

Keywords

• Value equity investing
• Investment management
• Mutual funds
• Separate accounts
• High yield credit

Headquarters

HQ city

Los Angeles

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D, Others

Revenue model

1. Investment Management Fees: The firm generates revenue through management fees charged on assets under management across separate accounts, mutual funds, and ETFs. Fee structures vary by vehicle type and strategy with net expense ratios ranging from 0.70% to 1.00% for mutual fund share classes.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels5 records

Core offering

Hotchkis & Wiley is a global investment manager that delivers bottom-up, fundamental value investment strategies across US equity (large cap, mid cap, small cap), international equity, and high yield fixed income. Capabilities are offered through separately managed accounts for institutional clients, mutual funds with multiple share classes (I, A, C, Z) for individual investors via intermediaries, and a SMID Cap Diversified Value ETF. All products draw on the same proprietary, research-intensive value investment process refined over 45 years.

Product overview

Hotchkis & Wiley is a global investment management firm offering a comprehensive suite of value-oriented investment products across multiple vehicles and market capitalizations. The firm provides 9 actively managed value equity strategies spanning US large cap, mid-cap, small cap, global, and international markets, plus 1 high yield fixed income strategy. Products include separate accounts for institutional clients and mutual funds available in multiple share classes (I, A, C, Z). Additionally, the firm launched the SMID Cap Diversified Value Fund (ETF) listed on Nasdaq in 2025. All strategies benefit from the firm's rigorous bottom-up fundamental value research process developed over 45 years.

Differentiator

Problem solved

Functional benefit

Products and services

• Large Cap Fundamental Value Strategy Value equity strategy investing in undervalued large cap stocks with defensible market positions, healthy balance sheets, and significant cash flow generation. 40-60 stock portfolio seeking payout yield exceeding the S&P 500 and trading at a P/E below market average. Available as a separate account for institutional clients.
• Large Cap Disciplined Value Strategy Value strategy focusing on undervalued large cap stocks relying on in-depth fundamental research to develop a portfolio of 50-80 companies under-earning due to temporary factors but with the balance sheet, scale, and market position to improve performance.
• Mid-Cap Value Strategy Value strategy investing in 50-80 undervalued mid-sized companies emphasizing sustainable cash flow, strong balance sheets, and long-term capital appreciation, focused on industries out of favor due to temporary or cyclical factors.
• Small Cap Value Strategy Concentrated portfolio targeting undervalued small cap stocks out of favor and often underfollowed by Wall Street research, seeking smaller companies with strong balance sheets and attractive assets to outperform the Russell 2000 Value Index.
• Small Cap Diversified Value Strategy Diversified portfolio targeting undervalued small cap stocks out of favor using proprietary valuation models and experienced research team judgment to build portfolios of 350-400 smaller companies with strong balance sheets.
• Value Opportunities Strategy Dynamic multi-cap portfolio of 45-75 undervalued issuers representing best ideas across the market cap spectrum; majority invested in equities with opportunistic positions in special situations such as bonds, preferred stock, and merger arbitrage.
• Global Value Strategy Global equity strategy seeking to own 40-80 of the most attractively valued companies in domestic and international markets with flexibility in market cap and geography, focused on durable businesses at attractive valuations.
• Focused Global Value Strategy Concentrated global strategy seeking to own 20-30 of the most attractively valued companies across domestic and international markets with flexibility in market cap and geography.
• International Value Strategy International equity strategy seeking to own 40-80 of the most attractively valued companies located outside the United States across the market cap spectrum.
• International Small Cap Diversified Value Strategy Diversified portfolio targeting undervalued international small cap stocks using proprietary valuation models and experienced research team judgment to outperform the index over full market cycles.
• High Yield Strategy High yield fixed income strategy seeking to invest in undervalued debt securities of companies with attractive cash flow, strong asset coverage, and financial flexibility to de-lever over time, with focus on senior securities and small/mid-cap issuers.
• SMID Cap Diversified Value Fund (ETF) Actively managed ETF (ticker: HWSM) listed on Nasdaq targeting small and mid-cap companies with a diversified value investment approach, offered to investors and advisors seeking active equity exposure through an exchange-traded structure.
• Large Cap Fundamental Value Fund Mutual fund version of the Large Cap Fundamental Value strategy available in multiple share classes for individual and institutional investors.
• Large Cap Disciplined Value Fund Mutual fund version of the Large Cap Disciplined Value strategy available in I and A share classes.
• Mid-Cap Value Fund Mutual fund version of the Mid-Cap Value strategy available in multiple share classes.
• Small Cap Value Fund Mutual fund version of the Small Cap Value strategy available in multiple share classes.
• Small Cap Diversified Value Fund Mutual fund version of the Small Cap Diversified Value strategy available in multiple share classes.
• Value Opportunities Fund Mutual fund version of the Value Opportunities strategy available in multiple share classes.
• Global Value Fund Mutual fund version of the Global Value strategy available in I and A share classes.
• International Value Fund Mutual fund version of the International Value strategy.
• International Small Cap Diversified Value Fund Mutual fund version of the International Small Cap Diversified Value strategy.
• High Yield Fund Mutual fund version of the High Yield strategy available in multiple share classes, offering monthly dividend distributions.

Quantifiable outcome

• Large Cap Fundamental Value strategy generated 12.92% annualized return since 07/01/1980, gross of fees
• +3 more outcomes

Named customers5 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Scale indicators11 records

Recent moves4 records

Expansion highlights5 records

Broad incumbents

• Invesco: Global asset manager with value-oriented US and international equity strategies distributed through institutional, intermediary, and ETF channels; overlapping with H&W's sub-advisory relationships and intermediary-distributed mutual funds.
• Cohen & Steers: Public asset manager specializing in value and income-oriented strategies (real assets, preferred, value equity); comparable as a research-intensive active manager with institutional and intermediary distribution.
• T. Rowe Price: Large publicly traded active asset manager with extensive value equity capability across US and international mandates; competes with H&W for institutional separate accounts and intermediary distribution despite H&W's boutique specialization.
• Vanguard: Dominant low-cost mutual fund and ETF provider with deep value index offerings; primary competitive headwind for H&W's mutual fund and ETF line given price and brand advantages in intermediary distribution.
• Eaton Vance: Diversified active manager (now part of Morgan Stanley) with value-oriented equity capabilities and a sub-advisory/intermediary model; comparable in distribution and product structure, particularly for advisor-sold value portfolios.

Direct peers

• Ariel Investments: Employee-owned US value equity boutique managing mutual funds and separate accounts across small/mid/large cap; closely comparable as a culture-driven, research-intensive value manager serving both institutional and intermediary channels.
• Dodge & Cox: San Francisco-based, majority employee-owned active value manager offering large cap, small cap, international, fixed income, and balanced strategies through mutual funds and institutional accounts — the closest functional and structural analog to Hotchkis & Wiley.
• Pzena Investment Management: Publicly traded global deep-value equity specialist (PZN) managing institutional separate accounts and pooled vehicles using a classic bottom-up valuation framework; directly comparable in style, research process, and institutional client base.
• Brandes Investment Partners: Employee-owned value equity specialist founded on Graham-and-Doddsville principles, with strong international value and global value strategies for institutional clients — directly competes for value-equity sub-advisory and separate account mandates.

Emerging players

• Dimensional Fund Advisors: Systematic asset manager applying value and size premiums through factor-based portfolios; competes indirectly with H&W in retail/intermediary channels as a lower-cost, rules-based alternative to fundamental value active management.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/hotchkis---wiley

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Hotchkis & Wiley