Hotchkis & Wiley SMID Cap Diversified Value Fund(NASDAQ:HWSM)

HWSM is an actively managed ETF focusing on small- to mid-cap companies. It invests primarily in undervalued companies through a fundamental value approach, addressing market inefficiencies from irrational investor behavior. Proprietary fundamental models used by an internal research team is used to build a portfolio of quality companies with strong balance sheets and prudent corporate governance. The portfolio holds 150-200 stocks, including foreign securities, leveraging a proprietary model combined with fundamental research. ESG factors are considered to assess financial materiality impacting company value and performance. Selling decisions are based on relative valuation, fundamental trends, deterioration of fundamentals, portfolio diversification, and strategy parameters, aiming to manage risk and optimize returns.