Well-established value boutique Hotchkis & Wiley’s investment focus and discipline earn it an Above Average Parent rating.
Scott McBride took the reins from longtime leader George Davis as the firm’s CEO in 2021. Davis remains with the firm, managing portfolios. McBride’s more than two decades at Hotchkis have helped him continue with the firm’s strategic initiatives for this institutionally minded investment boutique.
The firm’s strength lies in its team stability and focus on research-driven value investing in equities and a smaller-cap-focused high-yield bond fund. Collaboration and manager retention also stand out, in large part because of the team’s high level of firm ownership. With its team-oriented approach and senior leaders acting as both portfolio managers and analysts, key-person risk is minimal. Hotchkis has invested in expanding its trading team in recent years to alleviate concerns about the key-person dependency on its head trader.
Hotchkis & Wiley takes a measured approach to product expansion. Although the firm isn't straying from its signature value-investing core competency, it is seeking new opportunities to leverage its capabilities, including in exchange-traded funds, collective investment trusts, model portfolios, and non-US distribution. In March 2025, it launched its first ETF, Hotchkis & Wiley SMID Cap Diversified Value. Fees don’t stand out for good or ill versus other research-intensive boutiques.
Note: This share class' Parent Pillar rating is analyst-driven, as its Branding Name, Hotchkis and Wiley (Branding Name ID: BN0000091N), is covered by Morningstar Manager Research.
United States