Hotchkis & Wiley, an investment management company, released its second-quarter 2026 investor letter for the "Large Cap Fundamental Value Fund." A copy can be downloaded here. Equity markets posted strong returns, with the Russell 1000 Value Index rising by 13.9%, although many individual stocks lagged. Notably, semiconductor stocks and AI-related sectors saw exceptional gains. The rally appeared speculative, marked by a stark difference in performance between high-beta and low-volatility stocks, along with momentum stocks outperforming the market significantly. Despite heightened enthusiasm for AI investments, concerns arise over inflated valuations reminiscent of the dot-com era. While there is substantial capital investment in AI, future earnings growth must justify these expenditures. The fund maintains a cautious approach towards perceived beneficiaries of AI, suggesting that select high-quality businesses with reasonable valuations may be better positioned. Historical trends suggest that speculative markets often revert to valuations based on fundamental economic realities, and the chosen investments are believed to be well-prepared for such a shift. The fund underperformed the index in the quarter and returned 5.69% vs. 13.87% for the Russell 1000 Value Index, largely due to a lack of exposure to high-performing sectors like semiconductors, while stock selection in healthcare provided a positive contribution. Also, check the fund's top five holdings to see its best picks in 2026.
In its second-quarter 2026 investor letter, Hotchkis & Wiley Large Cap Fundamental Value Fund highlighted F5, Inc. (NASDAQ:FFIV) as one of its leading individual contributors. F5, Inc. (NASDAQ:FFIV) offers multi-cloud application security and delivery solutions. On August 31, 2026, F5, Inc. (NASDAQ:FFIV) closed at $407.13 per share. Over the past month, F5, Inc. (NASDAQ:FFIV) declined 3.41%, while its shares are up 29.82% over the past year. F5, Inc. (NASDAQ:FFIV) has a market capitalization of $23.05 billion, and its stock has traded within a 52-week range of $223.76 to $435.00.
Hotchkis & Wiley Large Cap Fundamental Value Fund stated the following regarding F5, Inc. (NASDAQ:FFIV) in its Q2 2026 investor letter:
"F5, Inc. (NASDAQ:FFIV) sells application networking and security software as well as data center appliances. The company's stock rose after it posted good quarterly results and raised both its revenue and EPS guidance. The company is misunderstood and gets incorrectly classified as a legacy IT hardware vendor, resulting in an attractive valuation for a company with better-than-average fundamental risk ratings. F5 has over 50% market share in traditional ADCs (application delivery controllers), along with various multi-cloud networking and application security products."

#ffiv

Hotchkis & Wiley, an investment management company, released its second-quarter 2026 investor letter for the "Large Cap Fundamental Value Fund." A copy can be downloaded here. Equity markets posted strong returns, with the Russell 1000 Value Index rising by 13.9%, although many individual stocks lagged. Notably, semiconductor stocks and AI-related sectors saw exceptional gains. The rally appeared speculative, marked by a stark difference in performance between high-beta and low-volatility stocks, along with momentum stocks outperforming the market significantly. Despite heightened enthusiasm for AI investments, concerns arise over inflated valuations reminiscent of the dot-com era. While there is substantial capital investment in AI, future earnings growth must justify these expenditures. The fund maintains a cautious approach towards perceived beneficiaries of AI, suggesting that select high-quality businesses with reasonable valuations may be better positioned. Historical trends suggest that speculative markets often revert to valuations based on fundamental economic realities, and the chosen investments are believed to be well-prepared for such a shift. The fund underperformed the index in the quarter and returned 5.69% vs. 13.87% for the Russell 1000 Value Index, largely due to a lack of exposure to high-performing sectors like semiconductors, while stock selection in healthcare provided a positive contribution. Also, check the fund's top five holdings to see its best picks in 2026.
In its second-quarter 2026 investor letter, Hotchkis & Wiley Large Cap Fundamental Value Fund highlighted F5, Inc. (NASDAQ:FFIV) as one of its leading individual contributors. F5, Inc. (NASDAQ:FFIV) offers multi-cloud application security and delivery solutions. On August 31, 2026, F5, Inc. (NASDAQ:FFIV) closed at $407.13 per share. Over the past month, F5, Inc. (NASDAQ:FFIV) declined 3.41%, while its shares are up 29.82% over the past year. F5, Inc. (NASDAQ:FFIV) has a market capitalization of $23.05 billion, and its stock has traded within a 52-week range of $223.76 to $435.00.
Hotchkis & Wiley Large Cap Fundamental Value Fund stated the following regarding F5, Inc. (NASDAQ:FFIV) in its Q2 2026 investor letter:
"F5, Inc. (NASDAQ:FFIV) sells application networking and security software as well as data center appliances. The company's stock rose after it posted good quarterly results and raised both its revenue and EPS guidance. The company is misunderstood and gets incorrectly classified as a legacy IT hardware vendor, resulting in an attractive valuation for a company with better-than-average fundamental risk ratings. F5 has over 50% market share in traditional ADCs (application delivery controllers), along with various multi-cloud networking and application security products."

#application

FFIV delivers cloud computing solutions, including automation, security, networking, and management services, for businesses, service providers, and governments. In its third-quarter fiscal 2026 earnings report, F5 showed $865 million in revenue (an 11% year-over-year gain), non-GAAP net income of $4.73 (a 14% gain), and offered growth and EPS guidance of up to 10% and $17.33, respectively.
It's no wonder FFIV shares are up 58% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.
Institutional volumes reveal plenty. In the last year, FFIV has enjoyed strong investor demand, which we believe to be institutional support.
Each green bar signals unusually large volumes in FFIV shares. They reflect our proprietary inflow signal, pushing the stock higher:
Plenty of technology names are under accumulation right now. But there's a powerful fundamental story happening with F5.

#year #shares #Stock #moneyflows

F5, Inc. (FFIV) is a Seattle-based technology company that provides application security, delivery, and multicloud networking solutions. The company helps enterprises, service providers, and government organizations secure, manage, and optimize applications across on-premises, cloud, and hybrid environments.
Companies with market capitalizations of $10 billion or more are generally classified as "large-cap stocks," and F5 easily clears that bar. With a valuation of roughly $22.1 billion, the company stands firmly in large-cap territory, underscoring its scale and established presence in the technology ****** e.
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