Analysis Report: Hotchkis & Wiley's Anti-AI Value Strategy Impact Assessment

On November 26, 2025, Forbes published an article highlighting David Green’s $767 million Hotchkis & Wiley Value Opportunities Fund (HWAIX) as an “anti-AI trade” [1]. The fund, rooted in 45-year value investing principles, targets undervalued companies abandoned by investors chasing AI boom stocks. Key holdings include enterprise software maker Workday (WDAY), telecom equipment giant Ericsson (ERIC), and moving/storage leader U-Haul (UHAL) — all with dominant market positions, strong balance sheets, and depressed valuations [1].

• Sector Performance Alignment
  : Non-tech sectors led gains on November26, with Healthcare (+1.44%), Industrials (+1.24%), and Consumer Cyclical (+1.23%) outperforming Technology (+0.78%) [0]. This reflects investor interest in value-focused sectors.
• Stock Price Reactions
  : The three highlighted holdings saw positive movements post-publication:
  • Workday (WDAY): +3.11%
  • Ericsson (ERIC): +1.06%
  • U-Haul (UHAL): +2.42%
    These gains suggest market validation of the fund’s contrarian thesis [0].
• Fund Performance Context
  : HWAIX delivered 12.5% annualized returns since inception (outperforming Russell3000 Value by ~3pp) but trails the S&P500’s 15.3% YTD gain due to AI dominance [1][0][2].

Metric	Workday (WDAY)	Ericsson (ERIC)	U-Haul (UHAL)	HWAIX Fund
Closing Price (Nov26)	$233.69 (+3.11%)	$9.50 (+1.06%)	$51.73 (+2.42%)	$40.99 (0%)
Market Cap	$62.4B	$31.66B	$9.83B	$785.82M
P/E Ratio	99.02	12.34	51.73	N/A
YTD Return	N/A	N/A	N/A	9.7%
S&P500 YTD Comparison	N/A	N/A	N/A	15.3%

Sources: [0][1][2]

• Directly Impacted
  : Workday (WDAY), Ericsson (ERIC), U-Haul (UHAL), Hotchkis & Wiley Value Opportunities Fund (HWAIX).
• Related Sectors
  : Enterprise Software (WDAY), Telecom Infrastructure (ERIC), Consumer Storage (UHAL).
• Value Investing Ecosystem
  : Contrarian funds and undervalued stocks outside the AI bubble.

• Information Gaps
  : Investors should verify:
  1. Historical valuation trends of WDAY/ERIC/UHAL relative to sector peers.
  2. HWAIX’s performance during prior tech booms (e.g., 2020-2021).
  3. AI disruption risks to Workday’s HR software dominance.
• Multi-Perspective View
  : Green’s strategy emphasizes:
  • WDAY’s recurring revenue (churn <2%) and deep enterprise integration.
  • ERIC’s global leadership in 5G infrastructure (1.1x EV/Sales).
  • UHAL’s unmatched scale (24k+ locations) and self-storage margin potential [1].
• Key Monitoring Factors
  :
  • AI sector rotation (shift to value stocks).
  • UHAL’s self-storage lease-up rates and mobility trends.
  • Workday’s AI adoption in its platform to counter competitive threats.

• Underperformance Risk
  : HWAIX’s 9.7% YTD return trails the S&P500’s 15.3% gain. Continued AI dominance may prolong this gap [1][2].
• Temporary Headwinds
  : UHAL faces elevated depreciation (peak Covid truck purchases), self-storage expansion losses, and low mobility due to high mortgage rates [1].
• Valuation Concerns
  : Workday’s high P/E (99x) contrasts with Green’s value thesis; investors should assess if growth justifies the multiple [0].

: Users should be aware that HWAIX’s contrarian strategy may underperform if AI stocks maintain momentum. UHAL’s temporary headwinds could persist longer than expected, impacting earnings [0][1].

[0] Internal Analytical Tools (sector performance, stock quotes) [internal]
[1] Forbes, “Finding Bargain Stocks In AI’s Shadow” (Nov26,2025): https://www.forbes.com/sites/sergeiklebnikov/2025/11/26/finding-bargain-stocks-in-ais-shadow/
[2] Yahoo Finance, HWAIX Performance: https://finance.yahoo.com/quote/HWAIX/

This analysis is for informational purposes only and not investment advice.
All data as of November26,2025, subject to market fluctuations.