Hotchkis & Wiley, a Los Angeles-based investment firm, has been successfully managing portfolios for more than 30 years. In 2013, its investment advice yielded a 39.95% return for its clients, more than double its performance in 2012.
Value investors, Hotchkis & Wiley emphasizes a company's tangible assets, sustainable cash flow and potential for improving business performance.
In the fourth quarter, Hotchkis & Wiley added to its third-largest stake – Cobalt International Energy Inc (CIE, Financial). The firm bought 11,203,447 shares in Cobalt, a Houston-based oil exploration and production company, for an average price of $8.87 per share. The transaction had a 0.35% impact on Hotchkis & Wiley’s portfolio.
Guru John Paulson (Trades, Portfolio) also has a stake in Cobalt.
Hotchkis & Wiley also added to its stake in Comstock Resources Inc (CRK, Financial) in the fourth quarter. The firm acquired 4,756,567 shares of Comstock – an energy company based in Frisco, Texas – nearly tripling its stake. The shares were purchased for an average price of $8.86 per share and had a 0.11% impact on the firm’s portfolio.
Other gurus who own stock in Comstock are Chuck Royce (Trades, Portfolio), NWQ Managers (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and Jim Simons (Trades, Portfolio).
The firm added one company – Signature Group Holdings Inc (SGGHU, Financial) – that is new to its portfolio. Hotchkis & Wiley bought 2,083,300 shares of Signature Group Holdings, a California-based industrial supply company, for an average price of $7.12 per share. The transaction had a 0.06% impact on the portfolio.
Guru Arnold Van Den Berg (Trades, Portfolio) owns a stake in Signature Group Holdings.
Hotchkis & Wiley also sold more than 60% of its stake in Rent-A-Center Inc (RCII, Financial), a Plano, Texas-based rent-to-own company, for an average price of $30.93 per share. The sale had a -0.39% impact on the firm’s portfolio.
Seven other gurus have stakes in Rent-A-Center – Tom Gayner (Trades, Portfolio), Chuck Royce (Trades, Portfolio), Richard Pzena (Trades, Portfolio), John Hussman (Trades, Portfolio), Charles Brandes (Trades, Portfolio), First Pacific Advisors (Trades, Portfolio) and Private Capital (Trades, Portfolio). Guru David Dreman (Trades, Portfolio) sold his stake in Rent-A-Center in the third quarter.
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