3 Hotchkis & Wiley Mutual Funds for Value-Oriented Returns

Hotchkis & Wiley Capital Management is an investment management company founded by John Hotchkis and George Wiley in 1980. The firm manages a group of value-oriented mutual funds that utilize a research-based approach to investment in value equity and fixed-income investments. In identifying undervalued stocks and fixed-income assets, the firm employs independent fundamental analysis. Equity investments are centered on companies that trade at less than their intrinsic value while the firm’s fixed-income strategy emphasizes asset valuation, credit analysis and portfolio coverage. The strategy seeks to limit potential default losses in pursuit of risk-adjusted returns.

Environmental, social and governance (ESG) considerations are incorporated by Hotchkis & Wiley into the fundamental research the company performs on corporations, including their corporate governance, environmental policies and other social policies. 

We have picked three Hotchkis & Wiley mutual funds — Hotchkis & Wiley Small Cap Value HWSAX, HW Opportunities HOMPX and Hotchkis & Wiley Mid-Cap Value HWMAX — which investors should buy now for the long term. These funds have a Zacks Mutual Fund Rank #1 (Strong Buy) or Rank 2 (Buy), with positive three-year and five-year annualized returns, minimum initial investments within $5000 and expense ratios considerably lower than the category average. So, these funds have provided a comparatively stronger performance and carry a lower fee.

Hotchkis & Wiley Small Cap Value fund seeks capital appreciation. HWSAX invests its net assets plus borrowings for investment purposes in common stocks of small-cap U.S. companies. 

James B. Miles has been the lead manager of HWSAX since Dec. 31, 1995. Most of the fund’s holdings were in companies such as Stagwell Inc. (5.1%), Workiva Inc. (4.9%) and SLM Corp (4.9%) as of June 30, 2026.

HWSAX’s 3-year and 5-year annualized returns are 13.5% and 11.9%, respectively. Its net expense ratio is 1.22%. HWSAX has a Zacks Mutual Fund Rank #1.               

To see how this fund performed compared to its category, and other 1 (Strong Buy) and 2 Ranked Mutual Funds, please click here.

HW Opportunities fund invests most of its assets in equity securities across market capitalizations and may also invest in investment-grade and high-yield bonds. 

George H. Davis has been the lead manager of HOMPX since Dec. 30, 2020. Most of the fund’s holdings were in companies such as Fuso Chemical Co.,Ltd. (10.1%), Olin Corp (9.5%) and Stagwell Inc. (9.3%) as of March 31, 2026.

HOMPX’s 3-year and 5-year annualized returns are 15.1% and 11.8%, respectively. Its net expense ratio is 0.22%. HOMPX has a Zacks Mutual Fund Rank #1.                

Hotchkis & Wiley Mid-Cap Value fund seeks capital appreciation. HWMAX invests its net assets plus borrowings for investment purposes in common stocks of mid-capitalization U.S. companies.

Stanley Majcher has been the lead manager of HWMAX since Dec. 31, 1997. Most of the fund’s holdings were in companies such as Workday, Inc. (4.2%), American International Group, Inc. (3.7%) and Kosmos Energy Ltd. (3.5%) as ofJune 30, 2026.

HWMAX’s 3-year and 5-year annualized returns are 14.3% and 12.9%, respectively. Its net expense ratio is 1.20%.HWMAX has a Zacks Mutual Fund Rank #2.