Hotchkis & Wiley SMID Cap Diversified Value Fund (HWSM)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Hotchkis & Wiley SMID Cap Diversified Value Fund (HWSM) trades at $30.79 with AI Score 46/100 (Grade C). Hotchkis & Wiley SMID Cap Diversified Value Fund (HWSM) is an ETF focusing on value stocks within the Russell 2000 and Russell Midcap indices. Market cap: $2.66M, Sector: Financial services.
Price live · AI analysis from Mar 17, 2026Analyst Coverage for HWSM: HWSM does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates HWSM against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
HWSM: the 1 perspectives are evenly split.
How is this calculated? →Hotchkis & Wiley SMID Cap Diversified Value Fund (HWSM) Financial Services Profile
Hotchkis & Wiley SMID Cap Diversified Value Fund (HWSM) is an ETF specializing in value-oriented investments across small and mid-cap companies. Managed by Hotchkis & Wiley Capital Management, it leverages fundamental analysis to identify undervalued opportunities within the Russell 2000 and Russell Midcap indices, offering diversified exposure to this market segment.
What Is the Investment Thesis for HWSM?
HWSM presents a value-oriented investment opportunity within the SMID-cap space. The fund's focus on undervalued companies, identified through fundamental analysis, could provide long-term capital appreciation. The ETF structure offers diversification and liquidity. A potential catalyst is the increasing investor interest in value stocks as growth stocks face headwinds. However, the fund's performance is subject to market volatility and the success of its stock-picking strategy. The fund's beta of 0.68 suggests lower volatility compared to the broader market. The absence of a dividend yield may deter some income-focused investors.
Based on FMP financials and quantitative analysis
HWSM Key Highlights
- Launched on March 31, 2025, providing a relatively new investment vehicle focused on value stocks.
- Managed by Hotchkis & Wiley Capital Management, LLC, a firm known for its value investing approach.
- Targets companies within the market capitalization range of the Russell 2000 and Russell Midcap Indices, offering exposure to the SMID-cap segment.
- Employs a bottom-up stock-picking approach, utilizing fundamental analysis to identify undervalued companies.
- Beta of 0.68 indicates lower volatility compared to the broader market, potentially appealing to risk-averse investors.
Who Are HWSM's Competitors?
HWSM is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| NXDT NexPoint Diversified Real Estate Trust | $5.53 | +3.08% | $285.77M | 73 |
| GENB Generate Biomedicines, Inc. | $17.03 | -2.18% | $2.18B | 72 |
| SII Sprott Inc. | $118.11 | +2.72% | $3.05B | 71 |
| IDKFF ThreeD Capital Inc. | $0.08 | +5.49% | $5.70M | 70 |
| MERFX The Merger Fund - Class A | $17.50 | -0.06% | $2.50B | 62 |
| TRNGF The Trendlines Group Ltd. | $0.03 | +2.95% | $28.87M | 62 |
| STEX Streamex Corp. (STEX) is focused on real-world asset tokenization, particularly integrating the gold and commodities market into blockchain technology. The company | $1.09 | +12.29% | $43.15M | 62 |
| DIAX Nuveen Dow 30 Dynamic Overwrite Fund | $14.10 | -0.91% | $512.77M | 62 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are HWSM's Key Strengths?
- Experienced management team at Hotchkis & Wiley Capital Management.
- Established value investing approach.
- Diversified portfolio of value stocks.
- ETF structure provides liquidity and accessibility.
What Are HWSM's Weaknesses?
- Dependence on the performance of the SMID-cap market.
- Vulnerability to market volatility.
- Absence of dividend yield may deter some investors.
- Relatively new fund with a limited track record.
What Could Drive HWSM Stock Higher?
- Potential shift in market sentiment towards value stocks.
- Continued growth of the ETF market.
- Expansion of the SMID-cap market.
What Are the Key Risks for HWSM?
- Economic downturns and market corrections.
- Changes in investor preferences.
- Competition from other asset management firms.
- Regulatory changes in the financial industry.
What Are the Growth Opportunities for HWSM?
- Increased Investor Interest in Value Investing: As macroeconomic conditions shift and growth stocks face challenges, investors may rotate towards value stocks. HWSM, with its focus on undervalued companies, could benefit from this trend. The potential market size for value investing is substantial, with trillions of dollars allocated to equity strategies. The timeline for this growth opportunity is ongoing, as market cycles fluctuate between growth and value leadership. HWSM's competitive advantage lies in its established value investing approach and the expertise of Hotchkis & Wiley Capital Management.
- Expansion of SMID-Cap Market: The SMID-cap market offers a diverse range of companies with growth potential. As these companies mature and expand, their stock prices may appreciate, benefiting HWSM's portfolio. The market capitalization of the Russell 2000 and Russell Midcap indices is significant, representing a substantial investment universe. The timeline for this growth opportunity is long-term, as SMID-cap companies grow over time. HWSM's competitive advantage is its focus on identifying undervalued companies within this market segment.
- ETF Market Growth: The ETF market continues to grow rapidly, attracting investors seeking diversified and low-cost investment solutions. HWSM, as an ETF, can benefit from this trend. The global ETF market is estimated to reach trillions of dollars in assets under management. The timeline for this growth opportunity is ongoing, as ETFs gain popularity. HWSM's competitive advantage is its specific focus on value investing in the SMID-cap space, differentiating it from broader market ETFs.
- Strategic Partnerships and Distribution Channels: Hotchkis & Wiley Capital Management can expand HWSM's reach by forming strategic partnerships with financial advisors and institutions. This can increase the fund's visibility and attract new investors. The potential market size for distribution partnerships is significant, with thousands of financial advisors and institutions seeking investment solutions for their clients. The timeline for this growth opportunity is medium-term, as partnerships are established and distribution channels are expanded. HWSM's competitive advantage is its unique value proposition and the reputation of Hotchkis & Wiley Capital Management.
- Technological Advancements in Investment Management: The use of artificial intelligence and machine learning in investment management can enhance HWSM's stock-picking process. By leveraging these technologies, the fund can identify undervalued companies more efficiently and improve its performance. The market size for AI-powered investment solutions is growing rapidly. The timeline for this growth opportunity is ongoing, as technology continues to evolve. HWSM's competitive advantage is its ability to integrate these technologies into its investment process and gain an edge over competitors.
What Opportunities Does HWSM Have?
- Increased investor interest in value investing.
- Expansion of the SMID-cap market.
- Growth of the ETF market.
- Strategic partnerships and distribution channels.
What Threats Does HWSM Face?
- Competition from other asset management firms.
- Economic downturns and market corrections.
- Changes in investor preferences.
- Regulatory changes in the financial industry.
What Are HWSM's Competitive Advantages?
- Established value investing approach.
- Expertise of Hotchkis & Wiley Capital Management.
- Diversified portfolio of value stocks.
- ETF structure provides liquidity and accessibility.
What Does HWSM Do?
The Hotchkis & Wiley SMID Cap Diversified Value Fund (HWSM) is an exchange-traded fund (ETF) launched on March 31, 2025, and managed by Hotchkis & Wiley Capital Management, LLC. The fund is designed to provide investors with exposure to a diversified portfolio of value stocks in the small and mid-capitalization segments of the U.S. equity market. It focuses on companies within the market capitalization range of the Russell 2000 Index and the Russell Midcap Index. Hotchkis & Wiley Capital Management, known for its value investing approach, employs a bottom-up stock-picking strategy, emphasizing in-depth fundamental analysis to identify companies that are believed to be undervalued by the market. This involves assessing various factors, including financial health, management quality, and competitive positioning. The fund aims to achieve long-term capital appreciation by investing in a portfolio of carefully selected value stocks. The ETF structure allows investors to easily access a diversified portfolio of these stocks through a single investment vehicle. HWSM offers a way to gain exposure to the potential upside of value investing in the SMID-cap space, with the diversification benefits of an ETF. The fund's investment decisions are guided by Hotchkis & Wiley's established value investing principles and research capabilities.
What Products and Services Does HWSM Offer?
- Invests in a diversified portfolio of value stocks.
- Focuses on small and mid-capitalization companies.
- Tracks companies within the market capitalization range of the Russell 2000 Index.
- Tracks companies within the market capitalization range of the Russell Midcap Index.
- Employs a bottom-up stock-picking approach.
- Utilizes fundamental analysis to identify undervalued companies.
- Aims to achieve long-term capital appreciation.
How Does HWSM Make Money?
- Generates revenue through management fees charged on assets under management (AUM).
- AUM growth is driven by investment performance and net inflows from investors.
- Expenses include operating costs, marketing expenses, and distribution fees.
What Industry Does HWSM Operate In?
The asset management industry is characterized by intense competition and evolving investor preferences. ETFs like HWSM compete with mutual funds, hedge funds, and other investment vehicles for investor capital. The trend towards passive investing and lower fees has put pressure on active managers to demonstrate their value proposition. HWSM's focus on value investing in the SMID-cap space differentiates it from broader market ETFs. The fund's success depends on its ability to identify undervalued companies and generate returns that outperform its benchmark. Competitors include ACEI, HIYY, ICPY, PCCE, and QMID.
Who Are HWSM's Key Customers?
- Individual investors seeking exposure to value stocks.
- Financial advisors looking for diversified investment solutions for their clients.
- Institutional investors seeking exposure to the SMID-cap market.
Hotchkis & Wiley SMID Cap Diversified Value Fund (HWSM) Valuation Context
Relative to its peer group, HWSM's quantitative score of 46/100 is below the peer average of 70/100.
HWSM Financials
Bull Case vs Bear Case
Bull Case
- Insiders seem to be positioning for growth; recent activity suggests confidence in the company's long-term value strategy.
- The community's bullish sentiment highlights belief in Hotchkis & Wiley's value-oriented approach in the current market conditions.
- Market perception suggests that value stocks are gaining favor, potentially benefiting HWSM due to its investment focus.
- Recent developments indicate a broader market trend towards diversification, aligning with the fund's investment strategy.
Bear Case
- Some community members express concerns about the fund's ability to adapt quickly to rapidly changing market dynamics.
- Bearish sentiment within the community points to worries about the fund's performance in a growth-driven market environment.
- Market perception indicates uncertainty regarding the sustainability of the value stock resurgence.
- Recent insider activity, while generally positive, shows some sales, raising questions about short-term outlook.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · April 2026
HWSM Latest News
No recent news available for HWSM.
HWSM Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for HWSM.
Price Targets
Wall Street price target analysis for HWSM.
HWSM MoonshotScore
What does this score mean?
The MoonshotScore rates HWSM's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
What Investors Ask About Hotchkis & Wiley SMID Cap Diversified Value Fund (HWSM) — Financial Services
What does Hotchkis & Wiley SMID Cap Diversified Value Fund do?
The Hotchkis & Wiley SMID Cap Diversified Value Fund (HWSM) is an exchange-traded fund (ETF) that invests in a diversified portfolio of value stocks within the small and mid-capitalization segments of the U.S. equity market. The fund targets companies within the market capitalization range of the Russell 2000 and Russell Midcap indices. It employs a bottom-up stock-picking approach, utilizing fundamental analysis to identify companies that are believed to be undervalued by the market. The fund aims to achieve long-term capital appreciation by investing in these carefully selected value stocks, offering investors a way to gain exposure to this market segment through a single investment vehicle.
What do analysts say about HWSM stock?
As of March 17, 2026, AI analysis for HWSM is pending. Generally, analysts evaluate ETFs like HWSM based on factors such as the fund's investment strategy, expense ratio, tracking error, and the performance of its underlying holdings. Key valuation metrics include the price-to-earnings ratio and price-to-book ratio of the portfolio companies. Growth considerations involve the potential for capital appreciation based on the fund's ability to identify undervalued companies and the overall performance of the SMID-cap market. However, without specific analyst reports, a detailed summary of consensus is unavailable.
What are the main risks for HWSM?
The main risks for HWSM include market volatility, particularly within the SMID-cap segment, which can be more sensitive to economic fluctuations. The fund's performance is also dependent on the success of its stock-picking strategy and the ability of Hotchkis & Wiley Capital Management to identify undervalued companies. Changes in investor preferences, such as a shift away from value investing, could negatively impact the fund's performance. Additionally, regulatory changes in the financial industry and competition from other asset management firms pose ongoing risks. The fund's relatively new status and limited track record also contribute to the overall risk profile.
How sensitive is HWSM to interest rate changes?
HWSM's sensitivity to interest rate changes is indirect, primarily affecting the valuations of the underlying companies in its portfolio. Rising interest rates can negatively impact the valuations of growth-oriented companies, potentially making value stocks more attractive. However, higher rates can also increase borrowing costs for companies, potentially impacting their profitability and growth prospects. The overall impact on HWSM depends on the specific characteristics of the companies in its portfolio and their sensitivity to interest rate movements. As a value fund, HWSM may be less sensitive to interest rate hikes compared to growth-focused funds, but the effect is still present.
How does HWSM's focus on value investing differentiate it from other ETFs?
HWSM's focus on value investing differentiates it from other ETFs by targeting companies that are perceived to be undervalued by the market based on fundamental analysis. Unlike growth-focused ETFs that invest in companies with high growth potential, HWSM seeks companies with lower valuations relative to their earnings, assets, or cash flow. This approach can provide downside protection during market downturns and potentially generate long-term capital appreciation. Furthermore, HWSM's specific focus on the SMID-cap space provides exposure to a different segment of the market compared to broad market ETFs or those focused on large-cap companies. This combination of value investing and SMID-cap exposure offers a unique investment proposition.
What are the key factors to evaluate for HWSM?
Hotchkis & Wiley SMID Cap Diversified Value Fund (HWSM) holds an AI score of 46/100 (low). Not financial advice.
How frequently does HWSM data refresh on this page?
HWSM prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven HWSM's recent stock price performance?
Hotchkis & Wiley SMID Cap Diversified Value Fund (HWSM) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Experienced management team at Hotchkis & Wiley Capital Management. See the News tab for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- AI analysis pending, limiting the depth of financial insights.
- Limited historical data due to the fund's recent launch date.