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Everyone’s a winner: Hotchkis tops groups with 100% of managers rated
Amplify reveals the fund groups where every manager is Citywire-rated, as well as those, such as Thrivent, with an impressive proportion of AAA-rated managers.
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Citywire tracks fund managers at more than 1,000 fund groups. It is not uncommon for a group to have at least one rated manager, but only a select few can boast that 100% of their eligible managers have achieved this accolade.
Setting aside the ultra-small boutiques, by focusing only on companies with a minimum of 10 managers, only five firms make it into the 100% club.
Hotchkis & Wiley Capital Management lead this group with all 14 managers being rated, ranging from + to AA ratings.
Hotchkis & Wiley’s highest- and longest-rated manager is George Davis, CEO of the firm since 1988. Davis has been eligible for a rating since July 2014 and has just climbed from A to AA this month.
He manages the Hotchkis & Wiley Diversified Value and Large Cap Value funds, both with Scott McBride (A-rated), Patricia McKenna (A), and Judd Peters (A). He also runs the Mid Cap Value fund, with Hunter Doble (AA) and Stan Majcher (AA), and the Value Opportunities fund, with David Green (AA).
The three large value funds (Diversified Value, Large Cap Value and Value Opportunities) have similar top holdings, such as General Electric (5.38%, 5.30%, and 7.08% respectively) and Citigroup (5.07%, 5.00%, 2.66% respectively). The Mid-Cap Value fund has top holdings including Kosmos Energy (4.99%), Popular (4.51%), and Fluor (4.49%).
These four funds have a combined $1.3bn in assets under management (AUM) and have each returned at least 30% over the past three years. This ranks George Davis 52nd of 345 managers in the US Large Value sector and second of 106 in the US Mid-Cap Value sector.
Strength in depth
A few firms have more than 40% of their eligible managers rated at Citywire’s highest rating, AAA.
Matt Finn is the longest-rated manager of the five AAA-rated Thrivent Financial managers. He has been eligible for a rating since August 2015, including a current eight-month AAA-rating streak. He has worked at Thrivent since April 2004, following stints at Evergreen Investment Management and Advantus Capital Management (now Securian Asset Management).
Finn only manages one fund, the Thrivent Small Cap Stock fund, alongside fellow AAA-rated manager James Tinucci. The fund has more than $1.6bn AUM and its top holdings include TTM Technologies (2.51%), Crane (2.16%), Ashland (2.16%), and Heartland Financial USA (2.13%).
Finn has a three-year return of 51.3%, ranking him 14th of 201 US Small Blend managers.
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