Hotchkis & Wiley, an investment management company, released its “Hotchkis & Wiley Large Cap Disciplined Value Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The S&P 500 rose 10.9% in Q2 2025, despite recent volatility. After the “liberation day” tariff announcement on April 2, the index plunged over 12% in four days. The market rebounded from this low, nearly +25% over the next ~11 weeks, to finish the quarter at an all-time high. In this environment, the fund performed in line with the Russell 1000 Value Index and returned 3.37% vs. 3.79% for the index. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.
In its second-quarter 2025 investor letter, Hotchkis & Wiley Large Cap Disciplined Value Fund highlighted stocks such as NOV Inc. (NYSE:NOV). NOV Inc. (NYSE:NOV) provides solutions for oil and gas drilling and production, and industrial and renewable energy sectors. The one-month return of NOV Inc. (NYSE:NOV) was -1.29%, and its shares lost 37.42% of their value over the last 52 weeks. On July 29, 2025, NOV Inc. (NYSE:NOV) stock closed at $13.03 per share, with a market capitalization of $4.896 billion.
Hotchkis & Wiley Large Cap Disciplined Value Fund stated the following regarding NOV Inc. (NYSE:NOV) in its second quarter 2025 investor letter:
“NOV Inc. (NYSE:NOV) is a leading diversified provider of oilfield capital equipment, consumables and services. The downturn in energy prices has reduced oilfield activity below sustainable levels, hurting NOV’s sales and profitability. As activity rebounds, the majority of NOV’s product lines should experience increases in volumes and pricing, while longer-term, the earnings power of Rig Aftermarket business should also improve given a large installed base. A newbuild rig cycle – whether onshore or offshore – would provide upside to our normal estimates.”
An engineer inspecting a complete set of oil and gas components.
NOV Inc. (NYSE:NOV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held NOV Inc. (NYSE:NOV) at the end of the first quarter, which was 34 in the previous quarter. While we acknowledge the potential of NOV Inc. (NYSE:NOV) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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