On December 31, 2024, Hotchkis & Wiley executed a significant transaction involving APA Corp, adding 4,937,954 shares at a trade price of $23.09. This acquisition impacted the firm's portfolio by 0.38%, reflecting a strategic move in line with its value investing philosophy. The transaction increased Hotchkis & Wiley's total holdings in APA Corp to 35,409,788 shares, which now constitute 2.71% of the firm's portfolio. This move underscores the firm's confidence in APA Corp's potential for appreciation.

Hotchkis & Wiley: A Profile of Value Investing

Established in Los Angeles in 1980, Hotchkis & Wiley is renowned for its focus on identifying undervalued companies with high appreciation potential. The firm adheres to a value investing philosophy, emphasizing tangible assets, sustainable cash flow, and business performance improvement. With a portfolio valued at $30.04 billion, Hotchkis & Wiley's top holdings include Telefonaktiebolaget L M Ericsson, F5 Inc, $Citigroup Inc(C-N)$, and Wells Fargo & Co, alongside APA Corp. The firm's investment strategy is deeply rooted in financial services and technology sectors.

APA Corp: An Overview

APA Corp, based in Houston, is an independent exploration and production company with operations in the US, Egypt, the North Sea, and Suriname. As of year-end 2023, APA Corp reported proved reserves of 807 million barrels of oil equivalent and a net production of 405 thousand boe/day. The company's operations are segmented into natural gas liquids revenues, natural gas revenues, oil revenues, and purchased oil and gas sales. APA Corp's market capitalization stands at $8.56 billion, with a current stock price of $23.14.

Financial Metrics and Valuation of APA Corp

APA Corp is considered modestly undervalued with a GF Value of $31.28 and a Price to GF Value ratio of 0.74. The company's [GF Score](https://www.gurufocus.com/term/gf-score/APA) is 71/100, indicating likely average performance. APA Corp has a [Profitability Rank](https://www.gurufocus.com/term/rank-profitability/APA) of 7/10 and a [Financial Strength](https://www.gurufocus.com/term/rank-balancesheet/APA) rank of 4/10. Notably, the company boasts a remarkable ROE of 65.86%, reflecting strong profitability. The [interest coverage](https://www.gurufocus.com/term/interest-coverage/APA) ratio stands at 9.18, indicating the company's ability to meet its interest obligations.

Hotchkis & Wiley's Portfolio and Holdings

APA Corp now constitutes 2.71% of Hotchkis & Wiley's portfolio, with the firm holding a total of 35,409,788 shares. This acquisition aligns with the firm's strategy of investing in undervalued companies with potential for appreciation. Other top holdings in the firm's portfolio include Telefonaktiebolaget L M Ericsson, F5 Inc, Citigroup Inc, and Wells Fargo & Co, highlighting a diversified investment approach across various sectors.

Other Gurus Holding APA Corp

Besides Hotchkis & Wiley, notable investors such as Bill Nygren (Trades, Portfolio), Smead Value Fund (Trades, Portfolio), and Ken Fisher (Trades, Portfolio) also hold positions in APA Corp. This collective interest from prominent investors underscores the potential value and growth prospects of APA Corp in the eyes of seasoned market participants.

Conclusion: Strategic Confidence in APA Corp

The recent transaction by Hotchkis & Wiley reflects a strategic confidence in APA Corp's potential, aligning with the firm's value investing strategy. With APA Corp's current valuation and financial metrics, investors may find the company appealing for further consideration. The acquisition not only enhances Hotchkis & Wiley's portfolio but also positions the firm to benefit from APA Corp's future growth and performance.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.