Hotchkis & Wiley Capital Reduces Insurance Companies in Third Quarter

By
A A A

As of the third quarter, the updated portfolio of Hotchkis & Wiley Capital Management includes 177 stocks, 19 of them new, a total value at $21.7 billion. The quarter-over-quarter turnover is 10%. The portfolio is currently weighted with top three sectors: financial services at 25.8%, technology at 13.2% and healthcare at 12.3%. The stocks bought by Hotchkis & Wiley averaged a return of 21.51% over 12 months.

One theme running through the Hotchkis & Wiley third quarter trading was about decreasing insurance companies. Here are three reductions of major insurance holdings made by Hotchkis & Wiley during the third quarter of 2013, starting with their large reduction of the health insurance company Aetna Inc. (AET.) Aetna reported a 46% increase in total revenue for the third quarter of 2013 at $13.03billion, up from $8.9 billion in the same quarter of 2012. The company's quarterly net income was up by 4% at $518.6 million, compared to the same quarter last year at $499.2 million. Earnings of $1.38 per share, based on net income, are down 6% from the third quarter of 2012 at $1.47 per share.

Aetna Inc. ( AET ): Reduced

Impacts Portfolio: -0.66%

Current Shares: 747,800

Up 61% over 12 months, Aetna Inc., a health care insurance company, has a market cap of $25.29 billion; shares trade with a P/E ratio of 13.70. The dividend yield is 1.20.

Guru Action: As of Sept. 30, 2013, Hotchkis & Wiley reduced its position by 73.65%. Hotchkis & Wiley sold in the average price range of $64.14 per share.

The current share price is around $67.77, with a change from average down 6%.

Check out the gurus trading AET and recent insider selling .

Track historical pricing, revenue and net income:

[ Enlarge Image ]

CNO Financial Group Inc. ( CNO ): Reduced

Impacts Portfolio: -0.5%

Current Shares: 2,762,834

Up 91% over 12 months, CNO Financial Group Inc., a life insurance company, has a market cap of $3.74 billion; shares trade with a P/E ratio of 5.90. The dividend yield is 0.60%.

CNO Financial Group reported financial results for the third quarter of 2013 with a net income of $283 million. Earnings of $1.23 per diluted share were reported in third quarter. Operating earnings were $77.2 million. The company reported a net income per diluted share of $1.23 compared to a loss of $(0.02) in the third quarter of 2012. Sales were up 8%, at $101.8 million for the reporting quarter.

Guru Action: As of Sept. 30, 2013, Hotchkis & Wiley reduced its position by 73.62%. Hotchkis & Wiley sold in the average price range of $14.27 per share.

The current share price is around $16.77, with a change from average up 18%.

Check out more gurus and insiders trading CNO.

Track historical pricing, revenue and net income:

[ Enlarge Image ]

American International Group Inc. ( AIG ): Reduced

Impacts Portfolio: -0.39%

Current Shares: 13,624,257

Up 52% over 12 months, AIG, an international insurance company in more than 130 countries, has a market cap of $73.71 billion; shares trade with a P/E ratio of 23.80. The dividend yield is 0.20%.

AIG reported financial results for the third quarter of 2013 with net income of $2.2 billion, up from $1.9 billion in the same quarter of 2012. Earnings of $1.46 per diluted share in the third quarter of 2013 were up from the prior-year's quarter at $1.13.

Guru Action: As of Sept. 30, 2013, Hotchkis & Wiley reduced its position by 11.51%.

Hotchkis & Wiley sold in the average price range of $47.55 per share.

The current share price is around $49.59, with a change from average up 4%.

Check out numerous gurus trading AIG in the third quarter and two insider trades in 2013.

Track historical pricing, revenue and net income:

[ Enlarge Image ]

Hotchkis & Wiley is an asset-management firm that specializes in long-only value investing.

Here is the complete portfolio of Hotchkis & Wiley.



Check out recent commentary by Hotchkis & Wiley.

Use the GuruFocus Value Screen to find 52-Week Lows and discover potentially deep value stocks held by billionaire Guru investors.

GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

If you are not a Premium Member, we invite you for a 7-day Free Trial . About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: AET , AIG , CNO

GuruFocus

GuruFocus

More from GuruFocus:

Related Videos

Budgeting for Baby
Budgeting for Baby                  
A Home to Retire In
A Home to Retire In                 

Stocks

Referenced

100%
59%
100%

Most Active by Volume

59,485,277
  • $16.91 ▼ 0.82%
45,900,961
  • $13.27 ▼ 6.48%
38,726,103
  • $76.465 ▼ 3.26%
38,370,226
  • $14.59 ▼ 1.35%
36,781,416
  • $97.16 ▼ 1.65%
33,346,004
  • $3.41 ▼ 2.29%
32,264,722
  • $99.08 ▼ 1.66%
29,591,425
  • $24.96 ▼ 0.83%
As of 10/1/2014, 02:02 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com