13F-HR 1 hw13f063.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 13F FORM 13F COVER PAGE Report for the Calendar Year or Quarter Ended: September 30, 2006 Check here if Amendment [ ]; Amendment Number: This Amendment (Check only one.): [ ] is a restatement. [ ] adds new holdings entries. Institutional Investment Manager Filing this Report: Name: Hotchkis and Wiley Capital Management, LLC Address: 725 South Figueroa Street, 39th Floor Los Angeles, CA 90017-5439 13F File Number: 028-10068 The institutional investment manager filing this report and the person by whom it is signed hereby represent that the person signing the report is authorized to submit it, that all information contained herein is true, correct and complete, and that it is understood that all required items, statements, schedules, and tables, are considered integral parts of this form. Person Signing this Report on Behalf of Reporting Manager: Name: Anna Marie Lopez Title: Chief Compliance Officer Phone: 213-430-1896 Signature, Place and Date of Signing: /s/ Anna Marie Lopez Los Angeles, CA November 13, 2006 Report Type (Check only one.): [X] 13F HOLDINGS REPORT. [ ] 13F NOTICE. [ ] 13F COMBINATION REPORT. FORM 13F SUMMARY PAGE Report Summary: Number of Other Included Managers: 0 Form 13F Information Table Entry Total: 135 Form 13F Information Table Value Total: $ 29,413,340 (thousands) List of Other Included Managers: NONE ITEM 4 ITEM 6 ITEM 8 FAIR MKT ITEM 5 INVSMNT VOTING AUTHORITY ITEM 1 ITEM 2 ITEM 3 VALUE SH/PRN SH PT DISCRET ITEM 7 (SHARES) ISSUER CLASS SECID (000s) AMOUNT PN CL TYPE MRG (A)SOLE (B)SHARED(C)NONE AAMES INVT CORP MD COM 00253G108 10162. 2886800. SH SOLE 2028800. 0. 858000. AGILE SOFTWARE CORP DEL COM 00846X105 7978. 1221700. SH SOLE 793000. 0. 428700. AGRIUM INC COM 008916108 225677. 8361500. SH SOLE 7658500. 0. 703000. ALCAN INC COM 013716105 7013. 175900. SH SOLE 175900. 0. 0. ALCOA INC COM 013817101 736293. 26258654. SH SOLE 18224494. 0. 8034160. ALEXANDER & BALDWIN INC COM 014482103 75793. 1708200. SH SOLE 1394100. 0. 314100. ALLTEL CORP COM 020039103 33467. 603000. SH SOLE 228600. 0. 374400. ALPHA NATURAL RESOURCES INC COM 02076X102 13610. 863586. SH SOLE 584786. 0. 278800. ALTRIA GROUP INC COM 02209S103 218607. 2855741. SH SOLE 2134741. 0. 721000. AMERICAN HOME MTG INVT CORP COM 02660R107 79330. 2275029. SH SOLE 2214429. 0. 60600. APARTMENT INVT & MGMT CO CL A 03748R101 13461. 247400. SH SOLE 247400. 0. 0. ASSURANT INC COM 04621X108 176306. 3301000. SH SOLE 2369800. 0. 931200. AVIS BUDGET GROUP COM 053774105 121019. 6616693. SH SOLE 5336812. 0. 1279881. BJS WHOLESALE CLUB INC COM 05548J106 132737. 4548900. SH SOLE 4116000. 0. 432900. BMC SOFTWARE INC COM 055921100 677332. 24883600. SH SOLE 20722900. 0. 4160700. BANK OF AMERICA CORPORATION COM 060505104 397220. 7414971. SH SOLE 5145244. 0. 2269727. BEARINGPOINT INC COM 074002106 56968. 7247900. SH SOLE 6528000. 0. 719900. BEAZER HOMES USA INC COM 07556Q105 38051. 974667. SH SOLE 664267. 0. 310400. BOWNE & CO INC COM 103043105 30111. 2108600. SH SOLE 1434200. 0. 674400. BROOKFIELD HOMES CORP COM 112723101 20320. 721607. SH SOLE 482271. 0. 239336. CF INDS HLDGS INC COM 125269100 58098. 3403500. SH SOLE 2310800. 0. 1092700. CNA FINL CORP COM 126117100 81799. 2270924. SH SOLE 2207124. 0. 63800. CSX CORP COM 126408103 21740. 662200. SH SOLE 662200. 0. 0. CA INC COM 12673P105 1483249. 62610774. SH SOLE 47316647. 0.15294127. CAPITAL LEASE FDG INC COM 140288101 46320. 4176700. SH SOLE 3055900. 0. 1120800. CENTEX CORP COM 152312104 647579. 12306700. SH SOLE 7961700. 0. 4345000. COMERICA INC COM 200340107 140092. 2461200. SH SOLE 1579000. 0. 882200. COMSTOCK HOMEBUILDING COS IN CL A 205684103 4523. 837500. SH SOLE 575000. 0. 262500. CONSECO INC COM NEW 208464883 212639. 10130500. SH SOLE 7531600. 0. 2598900. DOW CHEM CO COM 260543103 3551. 91100. SH SOLE 49800. 0. 41300. DOW JONES & CO INC COM 260561105 167358. 4989800. SH SOLE 4854400. 0. 135400. ECC CAPITAL CORP COM 26826M108 18. 17611. SH SOLE 17611. 0. 0. EAGLE HOSPITALITY PPTY TR IN COM 26959T102 10657. 1145920. SH SOLE 797320. 0. 348600. EASTMAN CHEM CO COM 277432100 611263. 11315500. SH SOLE 10095000. 0. 1220500. EDO CORP COM 281347104 14615. 638749. SH SOLE 435349. 0. 203400. ELECTRONIC DATA SYS NEW COM 285661104 1429656. 58305710. SH SOLE 44059410. 0.14246300. ENTERGY CORP NEW COM 29364G103 40069. 512200. SH SOLE 512200. 0. 0. EXELON CORP COM 30161N101 759365. 12543200. SH SOLE 8707300. 0. 3835900. F M C CORP COM NEW 302491303 50756. 792200. SH SOLE 745400. 0. 46800. FPL GROUP INC COM 302571104 1003520. 22300450. SH SOLE 16794250. 0. 5506200. FEDERAL HOME LN MTG CORP COM 313400301 715472. 10786550. SH SOLE 7484750. 0. 3301800. FIELDSTONE INVT CORP COM 31659U300 26501. 3035660. SH SOLE 2141960. 0. 893700. FIRSTENERGY CORP COM 337932107 1642. 29400. SH SOLE 29400. 0. 0. FLOWSERVE CORP COM 34354P105 460501. 9102600. SH SOLE 6725900. 0. 2376700. FOOT LOCKER INC COM 344849104 87683. 3472600. SH SOLE 3380200. 0. 92400. FOUNDATION COAL HLDGS INC COM 35039W100 37666. 1163600. SH SOLE 787000. 0. 376600. FREESCALE SEMICONDUCTOR INC COM CL A 35687M107 2173. 57100. SH SOLE 57100. 0. 0. FURNITURE BRANDS INTL INC COM 360921100 54313. 2852597. SH SOLE 2459597. 0. 393000. GENWORTH FINL INC COM CL A 37247D106 825168. 23569500. SH SOLE 17825400. 0. 5744100. GOVERNMENT PPTYS TR INC COM 38374W107 17651. 1956860. SH SOLE 1591660. 0. 365200. GRAY TELEVISION INC COM 389375106 1406. 219400. SH SOLE 99500. 0. 119900. GREAT PLAINS ENERGY INC COM 391164100 25225. 813200. SH SOLE 554600. 0. 258600. HCA INC COM 404119109 37918. 760033. SH SOLE 574830. 0. 185203. HANOVER INS GROUP INC COM 410867105 333219. 7466250. SH SOLE 6394350. 0. 1071900. HARRAHS ENTMT INC COM 413619107 574792. 8652592. SH SOLE 6600519. 0. 2052073. HARTFORD FINL SVCS GROUP INC COM 416515104 41059. 473300. SH SOLE 192400. 0. 280900. HOME DEPOT INC COM 437076102 586519. 16170900. SH SOLE 11304600. 0. 4866300. IKON OFFICE SOLUTIONS INC COM 451713101 201351. 14981500. SH SOLE 13392800. 0. 1588700. INTL PAPER CO COM 460146103 3176. 91700. SH SOLE 91700. 0. 0. INTERPUBLIC GROUP COS INC COM 460690100 244042. 24650712. SH SOLE 14760912. 0. 9889800. JP MORGAN CHASE & CO COM 46625H100 676346. 14402600. SH SOLE 9634060. 0. 4768540. JONES APPAREL GROUP INC COM 480074103 350401. 10801500. SH SOLE 9732700. 0. 1068800. KMG AMER CORP COM 482563103 11713. 1593600. SH SOLE 1102700. 0. 490900. KELLY SVCS INC CL A 488152208 57572. 2100400. SH SOLE 1409600. 0. 690800. KEYCORP NEW COM 493267108 250797. 6698650. SH SOLE 5419450. 0. 1279200. KRAFT FOODS INC CL A 50075N104 34308. 962100. SH SOLE 962100. 0. 0. LENNAR CORP CL A 526057104 589995. 13038560. SH SOLE 11047360. 0. 1991200. LENNAR CORP CL B 526057302 131281. 3124260. SH SOLE 2941600. 0. 182660. LEXINGTON CORP PPTYS TR COM 529043101 19744. 932200. SH SOLE 616600. 0. 315600. LINCOLN NATL CORP IND COM 534187109 57679. 929100. SH SOLE 904700. 0. 24400. LIVE NATION INC COM 538034109 18648. 913219. SH SOLE 625419. 0. 287800. LOCKHEED MARTIN CORP COM 539830109 707138. 8216800. SH SOLE 5903100. 0. 2313700. LODGIAN INC COM PAR $.01 54021P403 42833. 3225409. SH SOLE 2187409. 0. 1038000. LUBRIZOL CORP COM 549271104 89128. 1949000. SH SOLE 1783700. 0. 165300. M D C HLDGS INC COM 552676108 27916. 600984. SH SOLE 421684. 0. 179300. MI DEVS INC CL A SUB VTG 55304X104 243393. 6677440. SH SOLE 5772640. 0. 904800. MAGNA ENTMT CORP CL A 559211107 20306. 4329700. SH SOLE 3010800. 0. 1318900. MAGNA INTL INC CL A 559222401 269930. 3696150. SH SOLE 2769750. 0. 926400. MASTERCARD INC COM 57636Q104 338580. 4812800. SH SOLE 3167700. 0. 1645100. MCDONALDS CORP COM 580135101 42664. 1090600. SH SOLE 415000. 0. 675600. MERCK & CO INC COM 589331107 8175. 195100. SH SOLE 195100. 0. 0. METLIFE INC COM 59156R108 673388. 11880520. SH SOLE 8359420. 0. 3521100. MICROSOFT CORP COM 594918104 813680. 29750650. SH SOLE 20617550. 0. 9133100. MILLER INDS INC TENN COM NEW 600551204 25325. 1386178. SH SOLE 1132278. 0. 253900. MORTGAGEIT HLDGS INC COM 61915Q108 14397. 1022500. SH SOLE 568600. 0. 453900. MOSAIC CO COM 61945A107 316018. 18699300. SH SOLE 12085800. 0. 6613500. NEW CENTURY FINANCIAL CORP M COM 6435EV108 170790. 4344700. SH SOLE 3792800. 0. 551900. NORTHROP GRUMMAN CORP COM 666807102 83195. 1222200. SH SOLE 457700. 0. 764500. NOVELL INC COM 670006105 67265. 11027100. SH SOLE 10002200. 0. 1024900. OVERSEAS SHIPHOLDING GROUP I COM 690368105 14750. 238781. SH SOLE 165381. 0. 73400. PHH CORP COM NEW 693320202 45844. 1673149. SH SOLE 1092814. 0. 580335. PMA CAP CORP CL A 693419202 7949. 901200. SH SOLE 600500. 0. 300700. PATHMARK STORES INC NEW COM 70322A101 17974. 1806400. SH SOLE 1253700. 0. 552700. PETRO-CDA COM 71644E102 68472. 1697800. SH SOLE 627700. 0. 1070100. PIONEER COS INC COM NEW 723643300 25253. 1030300. SH SOLE 705000. 0. 325300. PLUM CREEK TIMBER CO INC COM 729251108 125125. 3675835. SH SOLE 3186797. 0. 489038. PRINCIPAL FINANCIAL GROUP IN COM 74251V102 1639. 30200. SH SOLE 30200. 0. 0. PRUDENTIAL FINL INC COM 744320102 62129. 814800. SH SOLE 331800. 0. 483000. PUBLIC SVC ENTERPRISE GROUP COM 744573106 166773. 2725500. SH SOLE 1896900. 0. 828600. PULTE HOMES INC COM 745867101 319556. 10030000. SH SOLE 6616300. 0. 3413700. R H DONNELLEY CORP COM NEW 74955W307 94733. 1790796. SH SOLE 1667394. 0. 123402. RAYTHEON CO COM NEW 755111507 336644. 7011950. SH SOLE 5395850. 0. 1616100. REALOGY CORP COM 75605E100 163517. 7209753. SH SOLE 4961453. 0. 2248300. RENT A CTR INC NEW COM 76009N100 103871. 3546300. SH SOLE 3213000. 0. 333300. SPX CORP COM 784635104 348755. 6526100. SH SOLE 5804300. 0. 721800. SAFEWAY INC COM NEW 786514208 195120. 6429000. SH SOLE 3974900. 0. 2454100. ST JOE CO COM 790148100 345088. 6289200. SH SOLE 4948300. 0. 1340900. ST PAUL TRAVELERS INC COM 792860108 768017. 16379131. SH SOLE 11350413. 0. 5028718. SARA LEE CORP COM 803111103 193190. 12021810. SH SOLE 8214310. 0. 3807500. SAXON CAP INC NEW COM 80556T106 8185. 583000. SH SOLE 567500. 0. 15500. SCHERING PLOUGH CORP COM 806605101 158215. 7162300. SH SOLE 2545700. 0. 4616600. SOUTHERN UN CO NEW COM 844030106 72652. 2750942. SH SOLE 2413026. 0. 337916. SPHERION CORP COM 848420105 17603. 2461900. SH SOLE 1661600. 0. 800300. TENET HEALTHCARE CORP COM 88033G100 426862. 52440040. SH SOLE 41283240. 0.11156800. TESORO CORP COM 881609101 220234. 3798450. SH SOLE 3414350. 0. 384100. THOMAS PPTYS GROUP INC COM 884453101 8266. 643300. SH SOLE 449700. 0. 193600. TOLL BROTHERS INC COM 889478103 80969. 2883500. SH SOLE 2803700. 0. 79800. TRONOX INC CL A 897051108 11035. 865500. SH SOLE 591500. 0. 274000. TYCO INTL LTD NEW COM 902124106 1003746. 35860890. SH SOLE 25024790. 0.10836100. UNILEVER PLC SPON ADR NEW 904767704 476102. 19189909. SH SOLE 13341749. 0. 5848160. UNIONBANCAL CORP COM 908906100 231827. 3806680. SH SOLE 3046280. 0. 760400. UNITED AMER INDEMNITY LTD CL A 90933T109 30672. 1365019. SH SOLE 929232. 0. 435787. UNUMPROVIDENT CORP COM 91529Y106 705241. 36371370. SH SOLE 30043270. 0. 6328100. VALASSIS COMMUNICATIONS INC COM 918866104 106964. 6060300. SH SOLE 5190600. 0. 869700. WCI CMNTYS INC COM 92923C104 127315. 7300180. SH SOLE 5418180. 0. 1882000. WAL MART STORES INC COM 931142103 240036. 4866900. SH SOLE 3369000. 0. 1497900. WARNACO GROUP INC COM NEW 934390402 63826. 3300200. SH SOLE 2234700. 0. 1065500. WASHINGTON MUT INC COM 939322103 237579. 5465347. SH SOLE 3649701. 0. 1815646. WASTE MGMT INC DEL COM 94106L109 356842. 9728514. SH SOLE 6806296. 0. 2922218. WESTWOOD ONE INC COM 961815107 50047. 7068800. SH SOLE 4862100. 0. 2206700. WEYERHAEUSER CO COM 962166104 247126. 4016347. SH SOLE 2747847. 0. 1268500. WYNDHAM WORLDWIDE CORP COM 98310W108 178468. 6380703. SH SOLE 4432823. 0. 1947880. YUM BRANDS INC COM 988498101 331331. 6365630. SH SOLE 4910530. 0. 1455100. QUANTA CAPITAL HLDGS LTD SHS G7313F106 1448. 786700. SH SOLE 324500. 0. 462200. XL CAP LTD CL A G98255105 327946. 4773600. SH SOLE 3683300. 0. 1090300.