<DOCUMENT>
<TYPE>13F-HR
<SEQUENCE>1
<FILENAME>hw13f062.txt
<TEXT>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 13F

FORM 13F COVER PAGE

Report for the Calendar Year or Quarter Ended: June 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      August 11, 2006


Report Type (Check only one.):

[X]      13F HOLDINGS REPORT.

[ ]      13F NOTICE.

[ ]      13F COMBINATION REPORT.


<PAGE>


FORM 13F SUMMARY PAGE


Report Summary:

Number of Other Included Managers:

0

Form 13F Information Table Entry Total:

138

Form 13F Information Table Value Total:

$ 28,292,099 (thousands)


List of Other Included Managers:

NONE

<PAGE>


 <TABLE>
 <S><C><C>
                                                           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     14587.   2923200. SH       SOLE          2065200.       0.  858000.
AGILE SOFTWARE CORP DEL        COM             00846X105      7746.   1221700. SH       SOLE           793000.       0.  428700.
AGRIUM INC                     COM             008916108    174777.   7527000. SH       SOLE          6878700.       0.  648300.
ALCAN INC                      COM             013716105     17640.    375800. SH       SOLE           375800.       0.       0.
ALCOA INC                      COM             013817101    676863.  20916654. SH       SOLE         14973594.       0. 5943060.
ALEXANDER & BALDWIN INC        COM             014482103     75693.   1709800. SH       SOLE          1395400.       0.  314400.
ALLTEL CORP                    COM             020039103     37685.    590400. SH       SOLE           234700.       0.  355700.
ALPHA NATURAL RESOURCES INC    COM             02076X102     30081.   1533200. SH       SOLE          1067300.       0.  465900.
ALTRIA GROUP INC               COM             02209S103    500524.   6816341. SH       SOLE          4910541.       0. 1905800.
AMERICAN HOME MTG INVT CORP    COM             02660R107     93149.   2527108. SH       SOLE          2461008.       0.   66100.
APARTMENT INVT & MGMT CO       CL A            03748R101    124017.   2854250. SH       SOLE          2543350.       0.  310900.
ASHLAND INC NEW                COM             044209104     23625.    354200. SH       SOLE           354200.       0.       0.
ASSURANT INC                   COM             04621X108    165020.   3409500. SH       SOLE          2504100.       0.  905400.
BJS WHOLESALE CLUB INC         COM             05548J106    131371.   4633900. SH       SOLE          4201000.       0.  432900.
BMC SOFTWARE INC               COM             055921100    672552.  28140240. SH       SOLE         25655740.       0. 2484500.
BANK OF AMERICA CORPORATION    COM             060505104    339987.   7068345. SH       SOLE          5025679.       0. 2042666.
BEARINGPOINT INC               COM             074002106     62421.   7457700. SH       SOLE          6736800.       0.  720900.
BEAZER HOMES USA INC           COM             07556Q105     27970.    609776. SH       SOLE           411376.       0.  198400.
BOWNE & CO INC                 COM             103043105     39611.   2770000. SH       SOLE          1938400.       0.  831600.
BROOKFIELD HOMES CORP          COM             112723101     11911.    361488. SH       SOLE           193052.       0.  168436.
CF INDS HLDGS INC              COM             125269100     57756.   4050188. SH       SOLE          2781388.       0. 1268800.
CIT GROUP INC                  COM             125581108      7321.    140000. SH       SOLE           140000.       0.       0.
CNA FINL CORP                  COM             126117100     71300.   2163224. SH       SOLE          2099424.       0.   63800.
CSX CORP                       COM             126408103     55387.    786300. SH       SOLE           786300.       0.       0.
CA INC                         COM             12673P105   1355844.  65977808. SH       SOLE         50990724.       0.14987084.
CAPITAL LEASE FDG INC          COM             140288101     47815.   4190600. SH       SOLE          3176900.       0. 1013700.
CENDANT CORP                   COM             151313103    502403.  30841220. SH       SOLE         21935920.       0. 8905300.
CENTEX CORP                    COM             152312104    636526.  12654600. SH       SOLE          8714400.       0. 3940200.
COMERICA INC                   COM             200340107    127797.   2458100. SH       SOLE          1599400.       0.  858700.
COMSTOCK HOMEBUILDING COS IN   CL A            205684103      5301.    837500. SH       SOLE           575000.       0.  262500.
CONSECO INC                    COM NEW         208464883    209314.   9061200. SH       SOLE          6781800.       0. 2279400.
DOW JONES & CO INC             COM             260561105    166812.   4764700. SH       SOLE          4641100.       0.  123600.
ECC CAPITAL CORP               COM             26826M108        21.     17611. SH       SOLE            17611.       0.       0.
EAGLE HOSPITALITY PPTY TR IN   COM             26959T102     11052.   1147641. SH       SOLE           799041.       0.  348600.
EASTMAN CHEM CO                COM             277432100    575705.  10661200. SH       SOLE          9665100.       0.  996100.
EDO CORP                       COM             281347104     16316.    670356. SH       SOLE           466956.       0.  203400.
ELECTRONIC DATA SYS NEW        COM             285661104   1345479.  55921810. SH       SOLE         43216910.       0.12704900.
ENTERGY CORP NEW               COM             29364G103    335106.   4736480. SH       SOLE          3857780.       0.  878700.
F M C CORP                     COM NEW         302491303     47282.    734300. SH       SOLE           687500.       0.   46800.
FPL GROUP INC                  COM             302571104    922486.  22293050. SH       SOLE         17172850.       0. 5120200.
FEDERAL HOME LN MTG CORP       COM             313400301    656142.  11509250. SH       SOLE          8227850.       0. 3281400.
FIELDSTONE INVT CORP           COM             31659U300     29587.   3230060. SH       SOLE          2304560.       0.  925500.
FIRSTENERGY CORP               COM             337932107    158995.   2932950. SH       SOLE          2587252.       0.  345698.
FLOWSERVE CORP                 COM             34354P105    572408.  10059900. SH       SOLE          7657800.       0. 2402100.
FOOT LOCKER INC                COM             344849104    124353.   5077700. SH       SOLE          4949800.       0.  127900.
FOUNDATION COAL HLDGS INC      COM             35039W100     59592.   1269800. SH       SOLE           877900.       0.  391900.
FREESCALE SEMICONDUCTOR INC    COM CL A        35687M107      4820.    166200. SH       SOLE           166200.       0.       0.
FURNITURE BRANDS INTL INC      COM             360921100     59617.   2860699. SH       SOLE          2467699.       0.  393000.
GENWORTH FINL INC              COM CL A        37247D106    843476.  24210000. SH       SOLE         18848100.       0. 5361900.
GOVERNMENT PPTYS TR INC        COM             38374W107     21517.   2267360. SH       SOLE          1853860.       0.  413500.
GRAY TELEVISION INC            COM             389375106      1270.    219400. SH       SOLE            99500.       0.  119900.
GREAT PLAINS ENERGY INC        COM             391164100     23572.    846103. SH       SOLE           586503.       0.  259600.
HCA INC                        COM             404119109    280040.   6489930. SH       SOLE          4205130.       0. 2284800.
HANOVER INS GROUP INC          COM             410867105    345758.   7285250. SH       SOLE          6313850.       0.  971400.
HARRAHS ENTMT INC              COM             413619107    418805.   5883751. SH       SOLE          4590926.       0. 1292825.
HARTFORD FINL SVCS GROUP INC   COM             416515104     71343.    843300. SH       SOLE           347300.       0.  496000.
HEWLETT PACKARD CO             COM             428236103      1673.     52800. SH       SOLE            52800.       0.       0.
HOME DEPOT INC                 COM             437076102    510004.  14249900. SH       SOLE         10197000.       0. 4052900.
IKON OFFICE SOLUTIONS INC      COM             451713101    188301.  14944500. SH       SOLE         13487300.       0. 1457200.
INTL PAPER CO                  COM             460146103     56628.   1753200. SH       SOLE           695400.       0. 1057800.
INTERPUBLIC GROUP COS INC      COM             460690100     70012.   8384712. SH       SOLE          3499712.       0. 4885000.
JP MORGAN CHASE & CO           COM             46625H100    600138.  14289000. SH       SOLE          9796960.       0. 4492040.
JAMESON INNS INC               COM             470457102     16954.   5806117. SH       SOLE          4085517.       0. 1720600.
JONES APPAREL GROUP INC        COM             480074103    320850.  10092800. SH       SOLE          9253700.       0.  839100.
KMG AMER CORP                  COM             482563103     14440.   1628000. SH       SOLE          1137100.       0.  490900.
KELLY SVCS INC                 CL A            488152208     59771.   2199900. SH       SOLE          1507700.       0.  692200.
KEYCORP NEW                    COM             493267108    230887.   6471050. SH       SOLE          5316350.       0. 1154700.
KRAFT FOODS INC                CL A            50075N104    220699.   7142350. SH       SOLE          4982950.       0. 2159400.
LENNAR CORP                    CL A            526057104    525951.  11853760. SH       SOLE         10255760.       0. 1598000.
LENNAR CORP                    CL B            526057302    122483.   3002760. SH       SOLE          2867600.       0.  135160.
LEXINGTON CORP PPTYS TR        COM             529043101     22287.   1031828. SH       SOLE           715228.       0.  316600.
LINCOLN NATL CORP IND          COM             534187109     52709.    933900. SH       SOLE           909500.       0.   24400.
LIVE NATION INC                COM             538034109     18582.    912663. SH       SOLE           624063.       0.  288600.
LOCKHEED MARTIN CORP           COM             539830109    599035.   8350080. SH       SOLE          6136380.       0. 2213700.
LODGIAN INC                    COM PAR $.01    54021P403     49664.   3485209. SH       SOLE          2441209.       0. 1044000.
LUBRIZOL CORP                  COM             549271104     93703.   2351400. SH       SOLE          2167000.       0.  184400.
M D C HLDGS INC                COM             552676108     19910.    383400. SH       SOLE           289100.       0.   94300.
MI DEVS INC                    CL A SUB VTG    55304X104    230220.   6789140. SH       SOLE          5880140.       0.  909000.
MAGNA ENTMT CORP               CL A            559211107     22774.   4329700. SH       SOLE          3010800.       0. 1318900.
MAGNA INTL INC                 CL A            559222401    260672.   3621950. SH       SOLE          2770650.       0.  851300.
MASTERCARD INC                 COM             57636Q104    256142.   5336300. SH       SOLE          3731600.       0. 1604700.
MCDONALDS CORP                 COM             580135101     36557.   1088000. SH       SOLE           427700.       0.  660300.
MERCK & CO INC                 COM             589331107    155979.   4281600. SH       SOLE          1746300.       0. 2535300.
METLIFE INC                    COM             59156R108    740175.  14453720. SH       SOLE         10502820.       0. 3950900.
MICROSOFT CORP                 COM             594918104    426140.  18289250. SH       SOLE         13080950.       0. 5208300.
MILLER INDS INC TENN           COM NEW         600551204     24517.   1184378. SH       SOLE           972678.       0.  211700.
MORTGAGEIT HLDGS INC           COM             61915Q108     22899.   1898780. SH       SOLE          1312980.       0.  585800.
MOSAIC CO                      COM             61945A107    291481.  18625000. SH       SOLE         12213400.       0. 6411600.
NEW CENTURY FINANCIAL CORP M   COM             6435EV108    211223.   4616900. SH       SOLE          4116600.       0.  500300.
NORTHROP GRUMMAN CORP          COM             666807102     76673.   1196900. SH       SOLE           455500.       0.  741400.
NOVELL INC                     COM             670006105     45277.   6829100. SH       SOLE          5920600.       0.  908500.
OVERSEAS SHIPHOLDING GROUP I   COM             690368105     41575.    702881. SH       SOLE           483281.       0.  219600.
PHH CORP                       COM NEW         693320202     53267.   1934159. SH       SOLE          1266689.       0.  667470.
PMA CAP CORP                   CL A            693419202      9282.    901200. SH       SOLE           600500.       0.  300700.
PATHMARK STORES INC NEW        COM             70322A101     17489.   1858600. SH       SOLE          1305900.       0.  552700.
PETRO-CDA                      COM             71644E102     78378.   1653200. SH       SOLE           630300.       0. 1022900.
PIONEER COS INC                COM NEW         723643300     30971.   1135300. SH       SOLE           800300.       0.  335000.
PLUM CREEK TIMBER CO INC       COM             729251108    126456.   3562135. SH       SOLE          3160797.       0.  401338.
PRINCIPAL FINANCIAL GROUP IN   COM             74251V102     13512.    242800. SH       SOLE           242800.       0.       0.
PRUDENTIAL FINL INC            COM             744320102    101290.   1303600. SH       SOLE           564000.       0.  739600.
PUBLIC SVC ENTERPRISE GROUP    COM             744573106    425257.   6431600. SH       SOLE          4581700.       0. 1849900.
PULTE HOMES INC                COM             745867101    285087.   9902300. SH       SOLE          6821800.       0. 3080500.
R H DONNELLEY CORP             COM NEW         74955W307     69826.   1291396. SH       SOLE          1183094.       0.  108302.
RAYTHEON CO                    COM NEW         755111507    309688.   6948350. SH       SOLE          5489550.       0. 1458800.
RENT A CTR INC NEW             COM             76009N100     63858.   2568700. SH       SOLE          2333500.       0.  235200.
SPX CORP                       COM             784635104    352222.   6295300. SH       SOLE          5696500.       0.  598800.
SAFEWAY INC                    COM NEW         786514208    277914.  10689000. SH       SOLE          6866200.       0. 3822800.
ST JOE CO                      COM             790148100    324049.   6962800. SH       SOLE          5634800.       0. 1328000.
ST PAUL TRAVELERS INC          COM             792860108    730364.  16383231. SH       SOLE         11687613.       0. 4695618.
SARA LEE CORP                  COM             803111103    190755.  11907310. SH       SOLE          8273910.       0. 3633400.
SAXON CAP INC NEW              COM             80556T106     44556.   3894741. SH       SOLE          3783541.       0.  111200.
SOUTHERN UN CO NEW             COM             844030106     87594.   3237042. SH       SOLE          2802026.       0.  435016.
SPHERION CORP                  COM             848420105     18691.   2049400. SH       SOLE          1409300.       0.  640100.
SUNTERRA CORP                  COM NEW         86787D208     17277.   1687228. SH       SOLE          1161228.       0.  526000.
SUPERVALU INC                  COM             868536103       821.     26743. SH       SOLE            26743.       0.       0.
TENET HEALTHCARE CORP          COM             88033G100    309165.  44292940. SH       SOLE         36036140.       0. 8256800.
TESORO CORP                    COM             881609101    226452.   3045350. SH       SOLE          2785550.       0.  259800.
THOMAS PPTYS GROUP INC         COM             884453101      7763.    660100. SH       SOLE           466500.       0.  193600.
TOLL BROTHERS INC              COM             889478103     15549.    608100. SH       SOLE           540000.       0.   68100.
TRIPLE CROWN MEDIA INC         COM             89675K102       238.     27400. SH       SOLE             7190.       0.   20210.
TRONOX INC                     CL A            897051108      5062.    390000. SH       SOLE           272600.       0.  117400.
TYCO INTL LTD NEW              COM             902124106    909598.  33076290. SH       SOLE         23665890.       0. 9410400.
UNILEVER PLC                   SPON ADR NEW    904767704    431604.  19148369. SH       SOLE         13503869.       0. 5644500.
UNION PAC CORP                 COM             907818108      1078.     11600. SH       SOLE            11600.       0.       0.
UNIONBANCAL CORP               COM             908906100    210149.   3253580. SH       SOLE          2664580.       0.  589000.
UNITED AMER INDEMNITY LTD      CL A            90933T109     29868.   1433219. SH       SOLE           997032.       0.  436187.
UNUMPROVIDENT CORP             COM             91529Y106    512087.  28245270. SH       SOLE         25708870.       0. 2536400.
VALASSIS COMMUNICATIONS INC    COM             918866104    121956.   5169800. SH       SOLE          4475000.       0.  694800.
WCI CMNTYS INC                 COM             92923C104    145924.   7245480. SH       SOLE          5536680.       0. 1708800.
WAL MART STORES INC            COM             931142103    180657.   3750400. SH       SOLE          2682400.       0. 1068000.
WARNACO GROUP INC              COM NEW         934390402     66036.   3535100. SH       SOLE          2437000.       0. 1098100.
WASHINGTON MUT INC             COM             939322103    242948.   5330147. SH       SOLE          3644101.       0. 1686046.
WASTE MGMT INC DEL             COM             94106L109    336849.   9388214. SH       SOLE          6716096.       0. 2672118.
WESTWOOD ONE INC               COM             961815107     45287.   6038300. SH       SOLE          4131600.       0. 1906700.
WEYERHAEUSER CO                COM             962166104    233341.   3748447. SH       SOLE          2617347.       0. 1131100.
YUM BRANDS INC                 COM             988498101    308363.   6134130. SH       SOLE          4801430.       0. 1332700.
QUANTA CAPITAL HLDGS LTD       SHS             G7313F106      2038.    786700. SH       SOLE           324500.       0.  462200.
XL CAP LTD                     CL A            G98255105    288950.   4713700. SH       SOLE          3708500.       0. 1005200.


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