Hotchkis & Wiley Small Cap Value Fund Class A (HWSAX) focuses on investing in undervalued small-cap companies across various sectors, primarily in the U.S. market. The fund's competitive position is bolstered by its value-oriented investment strategy and a disciplined approach to security selection, which allows it to capitalize on market inefficiencies.
The fund generates revenue primarily through management fees based on a percentage of AUM, which is typically around 1% annually. Its competitive advantage lies in its rigorous fundamental analysis and long-term investment horizon, which enables it to identify undervalued stocks that can outperform the market over time.
Changes in AUM driven by market performance and investor inflows/outflows
Performance relative to benchmark indices, particularly small-cap indices
Market sentiment towards value investing strategies
Interest rate movements impacting investor appetite for equities
Regulatory changes affecting asset management fees and practices
Market volatility impacting small-cap stock valuations
Increased competition from passive investment vehicles and ETFs
Market shifts towards growth investing over value investing
Limited financial leverage, but potential liquidity risks during market downturns
moderate - The fund's performance is linked to the economic cycle, as small-cap stocks tend to outperform during economic recoveries.
Rising interest rates can lead to increased borrowing costs for small-cap companies, potentially impacting their growth and profitability, which may affect the fund's performance.
minimal - The fund is not heavily reliant on credit markets for its operations.
value - The fund appeals to investors seeking long-term capital appreciation through value-oriented strategies.
moderate - Historical volatility is influenced by market conditions and the performance of small-cap stocks.