Hotchkis & Wiley Global Value Fund on Alphabet Inc.
Thesis
Hotchkis & Wiley remains constructive on Alphabet despite the position detracting from relative performance because the fund was underweight the stock versus the benchmark. The manager believes Alphabet's valuation remains attractive in light of improving growth prospects. Its core Search business, cloud platform, and other investments provide multiple sources of earnings power, and the letter explicitly states that the investment thesis remains intact.
“We believe Alphabet’s valuation remain good given its improving growth prospects.”