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A $33 Billion Value Manager Who Has Actually Outperformed | Scott McBride

Posted February 14, 2025 at 9:30 am

Validea Capital Management

In this episode of Excess Returns, Justin and Jack sit down with Scott McBride, CEO and portfolio manager at Hotchkis and Wiley, to explore the approach that has allowed them to succeed during a time when many other value investors have failed. McBride, with 24 years at the firm, shares insights into how their team has achieved impressive results by being willing to think differently from consensus.

Key topics discussed:

How market sentiment and emotion create opportunities for long-term investors

The importance of having the right team culture and being comfortable with contrarian positions

Their approach to valuing companies beyond traditional metrics like P/E ratios

Why catalysts aren’t necessary for investment success if you get valuation and governance right

Their perspective on international markets, particularly opportunities in Europe and the UK Thoughts on AI’s impact on businesses and investment analysis

The growing influence of passive investing and how it creates opportunities

McBride explains why having fewer analysts covering certain stocks can create opportunities, and why focusing on business quality, strong balance sheets, and good governance is crucial for long-term success. He also shares valuable insights about maintaining flexibility in investment approach rather than being dogmatic about any single strategy.

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Originally Posted February 14, 2025 – A $33 Billion Value Manager Who Has Actually Outperformed | Scott McBride

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One thought on “A $33 Billion Value Manager Who Has Actually Outperformed | Scott McBride”

  • Anonymous

    WHAT? My client accounts were up 31% for 1 year ending 1 24 25, with a 4.3% yield, a .58 beta and a Sharpe ratio of 2.28 equities, sold-out-of-the-money calls, sector ETFs and closed-end funds, MREITs, and BDC’s. My accounts were up over 20% in 2022 when the averages were all down double digits!

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