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Lewis Braham: This Value Fund Owns Anything It Wants: (HWAAX)
FYI: Old-school value investing demands both cheapness and a margin of safety against financial distress. But the hundreds of value funds on the market today have largely suffered in the past decade. Growth stocks have outperformed since the financial crisis, but that’s not the only factor that has held back value funds: Most own hundreds of stocks that either aren’t so cheap or are cheap for good reason.
David Green goes beyond the traditional metrics. “Just looking at a screen gives you only a snapshot that won’t tell you what a company will do in the future,” says the manager of Hotchkis & Wiley Value Opportunities fund (ticker: HWAAX). “It won’t tell you what a company’s competitive position is, or if it has some hidden liability. So, each company’s earnings profile is determined by our research team.” Regards, Ted https://www.barrons.com/articles/this-value-fund-owns-anything-it-wants-51559830489?refsec=funds
In the Hotchkis & Wiley family of funds Old_Skeet owns HWIAX which is their capital income fund and it too owns most anything that it wants. Within this fund you will find many of the equity holdings that are also found in HWAAX. HWIAX pays a monthly dividend and has a yield of better than 3% while HWAAX pays annually with a yield of less than 1%. HWAAX is listed by M* as a 85+% equity allocation fund while HWIAX is listed as a 50% to 70% equity allocation fund. Years back, I chose HWIAX over HWAAX because of the higher yield and monthly distributions.
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