13F-HR 1 hw3q10.txt HOTCHKIS & WILEY CAPITAL MANAGEMENT LLC 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, 2010 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, lists, and tables, are considered integral parts of this form. Person Signing this Report on Behalf of Reporting Manager: Name: Tina H. Kodama Title: Chief Compliance Officer Phone: 213-430-1897 Signature, Place, and Date of Signing: /s/ Tina H. Kodama Los Angeles, CA November 12, 2010 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: 143 Form 13F Information Table Value Total: $14,812,611 (thousands) List of Other Included Managers: Provide a numbered list of the name(s) and Form 13F file number(s) of all institutional managers with respect to which this report is filed, other than the manager filing this report. NONE FORM 13F INFORMATION TABLE VALUE SHARES/ SH/ PUT/ INVSTMT OTHER VOTING AUTHORITY NAME OF ISSUER TITLE OF CLASS CUSIP (x$1000) PRN AMT PRN CALL DSCRETN MANAGERS SOLE SHARED NONE ------------------------------ ---------------- --------- -------- -------- --- ---- ------- ------------ -------- -------- -------- ACCENTURE PLC IRELAND SHS CLASS A G1151C101 23806 560270 SH SOLE 117500 0 442770 ADVANCED MICRO DEVICES INC NOTE 6.000% 5/0 007903AL1 1460 1477000 PRN SOLE 1477000 0 0 AIR T INC COM 009207101 311 34800 SH SOLE 34800 0 0 ALLSTATE CORP COM 020002101 337220 10688427 SH SOLE 5464210 0 5224217 ARRIS GROUP INC COM 04269Q100 52972 5421918 SH SOLE 3236600 0 2185318 ARVINMERITOR INC FRNT 4.000% 2/1 043353AH4 915 1000000 PRN SOLE 1000000 0 0 ASSOCIATED BANC CORP COM 045487105 14462 1096474 SH SOLE 346200 0 750274 BANK OF AMERICA CORPORATION COM 060505104 437626 33381072 SH SOLE 15997630 0 17383442 BANK OF AMERICA CORPORATION *W EXP 01/16/201 060505146 273 42100 SH SOLE 42100 0 0 BOEING CO COM 097023105 26752 402041 SH SOLE 127800 0 274241 BRISTOW GROUP INC COM 110394103 11488 318400 SH SOLE 81800 0 236600 CA INC COM 12673P105 566105 26804230 SH SOLE 14323404 0 12480826 CAPITAL ONE FINL CORP COM 14040H105 156335 3952832 SH SOLE 2084900 0 1867932 CAPLEASE INC COM 140288101 12437 2224800 SH SOLE 743100 0 1481700 CARNIVAL CORP PAIRED CTF 143658300 43653 1142451 SH SOLE 236300 0 906151 CELANESE CORP DEL COM SER A 150870103 244833 7627200 SH SOLE 5275400 0 2351800 CITIGROUP INC COM 172967101 322751 82756776 SH SOLE 39824371 0 42932405 CITIGROUP INC UNIT 99/99/9999 172967416 4231 35700 PRN SOLE 35700 0 0 CNO FINL GROUP INC COM 12621E103 67775 12233823 SH SOLE 7671500 0 4562323 COBALT INTL ENERGY INC COM 19075F106 74385 7789000 SH SOLE 5183600 0 2605400 COMCAST CORP NEW CL A SPL 20030N200 257216 15121467 SH SOLE 7586300 0 7535167 CONOCOPHILLIPS COM 20825C104 467987 8148824 SH SOLE 3803546 0 4345278 CON-WAY INC COM 205944101 150988 4872151 SH SOLE 3153400 0 1718751 COVIDIEN PLC SHS G2554F105 23362 581300 SH SOLE 121900 0 459400 CUMMINS INC COM 231021106 112489 1241876 SH SOLE 512200 0 729676 CVS CAREMARK CORPORATION COM 126650100 166740 5298375 SH SOLE 2370000 0 2928375 DIAMOND HILL FINL TRNDS FD I COM 25264C101 760 86100 SH SOLE 86100 0 0 DISCOVER FINL SVCS COM 254709108 51992 3117000 SH SOLE 2346000 0 771000 EDISON INTL COM 281020107 172161 5006121 SH SOLE 2622333 0 2383788 EMBRAER-EMPRESA BRASILEIRA D SP ADR COM SHS 29081M102 158829 5594547 SH SOLE 3185500 0 2409047 EMPLOYERS HOLDINGS INC COM 292218104 13477 854626 SH SOLE 248000 0 606626 ENTERGY CORP NEW COM 29364G103 32300 422052 SH SOLE 89300 0 332752 EXELON CORP COM 30161N101 433869 10189497 SH SOLE 5034900 0 5154597 EXXON MOBIL CORP COM 30231G102 35879 580667 SH SOLE 133300 0 447367 FEDEX CORP COM 31428X106 80174 937708 SH SOLE 196800 0 740908 FIFTH THIRD BANCORP COM 316773100 33084 2750100 SH SOLE 2087400 0 662700 FIRST FINL HLDGS INC COM 320239106 3420 306999 SH SOLE 105000 0 201999 FIRST HORIZON NATL CORP COM 320517105 35132 3079022 SH SOLE 1780831 0 1298191 FIRST INTST BANCSYSTEM INC COM CL A 32055Y201 11095 824327 SH SOLE 272100 0 552227 FORTUNE BRANDS INC COM 349631101 35239 715800 SH SOLE 482500 0 233300 FURNITURE BRANDS INTL INC COM 360921100 4954 920900 SH SOLE 351900 0 569000 GAP INC DEL COM 364760108 304997 16362511 SH SOLE 9046900 0 7315611 GENWORTH FINL INC COM CL A 37247D106 237769 19457397 SH SOLE 10283000 0 9174397 GLOBAL INDEMNITY PLC SHS G39319101 25490 1588162 SH SOLE 612296 0 975866 GOODYEAR TIRE & RUBR CO COM 382550101 53188 4947729 SH SOLE 2843200 0 2104529 GREAT PLAINS ENERGY INC COM 391164100 83187 4401405 SH SOLE 2487800 0 1913605 HARLEY DAVIDSON INC COM 412822108 112665 3961500 SH SOLE 2578300 0 1383200 HARTFORD FINL SVCS GROUP INC COM 416515104 59600 2596929 SH SOLE 1374200 0 1222729 HARTFORD FINL SVCS GROUP INC DEP CONV PFD 416515708 3183 134200 PRN SOLE 134200 0 0 HAYNES INTERNATIONAL INC COM NEW 420877201 17024 487500 SH SOLE 164200 0 323300 HEIDRICK & STRUGGLES INTL IN COM 422819102 13077 671316 SH SOLE 220300 0 451016 HEWLETT PACKARD CO COM 428236103 334289 7946014 SH SOLE 3935600 0 4010414 HOLLY CORP COM PAR $0.01 435758305 28498 991251 SH SOLE 674000 0 317251 HOME DEPOT INC COM 437076102 207790 6559041 SH SOLE 3002733 0 3556308 HOME FED BANCORP INC MD COM 43710G105 2081 171000 SH SOLE 0 0 171000 HONEYWELL INTL INC COM 438516106 38028 865461 SH SOLE 449100 0 416361 HORIZON LINES INC NOTE 4.250% 8/1 44044KAB7 4369 4775000 PRN SOLE 4775000 0 0 HUDSON HIGHLAND GROUP INC COM 443792106 16592 4823255 SH SOLE 2575100 0 2248155 HYPERCOM CORP COM 44913M105 17852 2746400 SH SOLE 889000 0 1857400 INTERNATIONAL BUSINESS MACHS COM 459200101 211007 1573034 SH SOLE 783874 0 789160 INTERPUBLIC GROUP COS INC COM 460690100 110083 10975386 SH SOLE 4676272 0 6299114 JACK IN THE BOX INC COM 466367109 1405 65528 SH SOLE 0 0 65528 JOHNSON & JOHNSON COM 478160104 136247 2198951 SH SOLE 896120 0 1302831 JOHNSON CTLS INC COM 478366107 49260 1615079 SH SOLE 332400 0 1282679 JONES APPAREL GROUP INC COM 480074103 102349 5211261 SH SOLE 3284300 0 1926961 JPMORGAN CHASE & CO COM 46625H100 525495 13803384 SH SOLE 6575177 0 7228207 KAISER ALUMINUM CORP COM PAR $0.01 483007704 15807 369400 SH SOLE 106200 0 263200 KEYCORP NEW COM 493267108 91451 11488790 SH SOLE 6410041 0 5078749 KINETIC CONCEPTS INC COM NEW 49460W208 96414 2635700 SH SOLE 1696300 0 939400 KING PHARMACEUTICALS INC COM 495582108 69430 6970900 SH SOLE 4119500 0 2851400 KRAFT FOODS INC CL A 50075N104 27608 894611 SH SOLE 179521 0 715090 KSW INC COM 48268R106 418 136700 SH SOLE 136700 0 0 LAKES ENTMNT INC COM 51206P109 1087 631700 SH SOLE 332100 0 299600 LIBERTY GLOBAL INC COM SER A 530555101 23188 752600 SH SOLE 566400 0 186200 LIFEPOINT HOSPITALS INC COM 53219L109 10259 292600 SH SOLE 215100 0 77500 LILLY ELI & CO COM 532457108 310962 8512512 SH SOLE 4159016 0 4353496 LIMITED BRANDS INC COM 532716107 58324 2177903 SH SOLE 1014800 0 1163103 LOCKHEED MARTIN CORP COM 539830109 317418 4453108 SH SOLE 2260417 0 2192691 LORILLARD INC COM 544147101 54904 683653 SH SOLE 269500 0 414153 MAGNA INTL INC COM 559222401 32427 394200 SH SOLE 300700 0 93500 MANPOWER INC COM 56418H100 81886 1568700 SH SOLE 1018800 0 549900 MARATHON OIL CORP COM 565849106 59544 1798915 SH SOLE 377300 0 1421615 MAXIM INTEGRATED PRODS INC COM 57772K101 2156 116500 SH SOLE 116500 0 0 MCDONALDS CORP COM 580135101 1825 24500 SH SOLE 0 0 24500 MERCK & CO INC NEW COM 58933Y105 22693 616495 SH SOLE 131443 0 485052 METLIFE INC COM 59156R108 188379 4899328 SH SOLE 2532982 0 2366346 MI DEVS INC CL A SUB VTG 55304X104 47871 4363800 SH SOLE 3070700 0 1293100 MICROSOFT CORP COM 594918104 244430 9980794 SH SOLE 4799663 0 5181131 MILLER INDS INC TENN COM NEW 600551204 21641 1599490 SH SOLE 773198 0 826292 NATIONAL SEMICONDUCTOR CORP COM 637640103 22562 1766800 SH SOLE 1337300 0 429500 NESS TECHNOLOGIES INC COM 64104X108 5989 1330939 SH SOLE 423800 0 907139 NEXTERA ENERGY INC COM 65339F101 159997 2941668 SH SOLE 1450550 0 1491118 NORANDA ALUM HLDG CORP COM 65542W107 21217 2581200 SH SOLE 964200 0 1617000 NORTHROP GRUMMAN CORP COM 666807102 202621 3341927 SH SOLE 1610964 0 1730963 NOVELL INC COM 670006105 25528 4276000 SH SOLE 2379800 0 1896200 NXP SEMICONDUCTORS N V COM N6596X109 33555 2708200 SH SOLE 2048100 0 660100 ON SEMICONDUCTOR CORP COM 682189105 51378 7126000 SH SOLE 4345000 0 2781000 ORACLE CORP COM 68389X105 45862 1708098 SH SOLE 357800 0 1350298 OVERHILL FARMS INC COM 690212105 11967 2624352 SH SOLE 1286400 0 1337952 PACCAR INC COM 693718108 275092 5713232 SH SOLE 2798000 0 2915232 PENNEY J C INC COM 708160106 401130 14758279 SH SOLE 7532748 0 7225531 PFIZER INC COM 717081103 305686 17803510 SH SOLE 8770351 0 9033159 PHH CORP COM NEW 693320202 66048 3136200 SH SOLE 1875300 0 1260900 PHILIP MORRIS INTL INC COM 718172109 215203 3841532 SH SOLE 1895158 0 1946374 PMA CAP CORP CL A 693419202 5037 668003 SH SOLE 235000 0 433003 PNC FINL SVCS GROUP INC COM 693475105 156997 3024415 SH SOLE 1441895 0 1582520 PORTLAND GEN ELEC CO COM NEW 736508847 64935 3201900 SH SOLE 1940600 0 1261300 PPG INDS INC COM 693506107 210505 2891551 SH SOLE 1428935 0 1462616 PRUDENTIAL FINL INC COM 744320102 37643 694782 SH SOLE 146500 0 548282 QUIKSILVER INC COM 74838C106 15683 4011000 SH SOLE 1119500 0 2891500 REGIONS FINANCIAL CORP NEW COM 7591EP100 111757 15372400 SH SOLE 10623900 0 4748500 RENT A CTR INC NEW COM 76009N100 61528 2749242 SH SOLE 1746100 0 1003142 ROYAL DUTCH SHELL PLC SPON ADR B 780259107 512160 8711680 SH SOLE 4170403 0 4541277 RPM INTL INC COM 749685103 12920 648597 SH SOLE 397297 0 251300 SAFEWAY INC COM NEW 786514208 216626 10237519 SH SOLE 5612600 0 4624919 SFN GROUP INC COM 784153108 670 111400 SH SOLE 0 0 111400 STONE ENERGY CORP COM 861642106 62116 4217006 SH SOLE 2415900 0 1801106 SUNTRUST BKS INC COM 867914103 62971 2437917 SH SOLE 1308500 0 1129417 SUPERVALU INC COM 868536103 28773 2495526 SH SOLE 1890400 0 605126 SYMANTEC CORP COM 871503108 11138 734200 SH SOLE 552200 0 182000 SYMETRA FINL CORP COM 87151Q106 26640 2546810 SH SOLE 835800 0 1711010 SYNOVUS FINL CORP COM 87161C105 27598 11218866 SH SOLE 6507400 0 4711466 TEREX CORP NEW COM 880779103 34185 1491500 SH SOLE 706000 0 785500 TERRITORIAL BANCORP INC COM 88145X108 277 16479 SH SOLE 5700 0 10779 TIME WARNER CABLE INC COM 88732J207 48203 892806 SH SOLE 187100 0 705706 TRANSOCEAN INC NOTE 1.500%12/1 893830AV1 5509 5600000 PRN SOLE 5600000 0 0 TRAVELERS COMPANIES INC COM 89417E109 61042 1171639 SH SOLE 604091 0 567548 TREE COM INC COM 894675107 1525 232800 SH SOLE 232800 0 0 TYCO ELECTRONICS LTD SWITZER SHS H8912P106 304314 10414573 SH SOLE 5518125 0 4896448 TYCO INTERNATIONAL LTD SHS H89128104 157354 4284066 SH SOLE 1780600 0 2503466 UNIVERSAL STAINLESS & ALLOY COM 913837100 7516 306035 SH SOLE 112900 0 193135 UNUM GROUP COM 91529Y106 34265 1546950 SH SOLE 977650 0 569300 VALASSIS COMMUNICATIONS INC COM 918866104 148607 4384991 SH SOLE 2839900 0 1545091 VODAFONE GROUP PLC NEW SPONS ADR NEW 92857W209 330172 13308029 SH SOLE 6203893 0 7104136 WAL MART STORES INC COM 931142103 203049 3793883 SH SOLE 1646586 0 2147297 WALTER INVT MGMT CORP COM 93317W102 6559 375000 SH SOLE 122300 0 252700 WEBSTER FINL CORP CONN COM 947890109 17532 998382 SH SOLE 303500 0 694882 WEIGHT WATCHERS INTL INC NEW COM 948626106 19955 639800 SH SOLE 395200 0 244600 WELLS FARGO & CO NEW COM 949746101 481289 19151978 SH SOLE 9064942 0 10087036 WESTAR ENERGY INC COM 95709T100 20055 827700 SH SOLE 297700 0 530000 WESTWOOD ONE INC COM NEW 961815305 181 21319 SH SOLE 11418 0 9901 WRIGHT EXPRESS CORP COM 98233Q105 2257 63200 SH SOLE 0 0 63200 XL GROUP PLC SHS G98290102 302649 13972695 SH SOLE 7369600 0 6603095