Hotchkis & Wiley Mid-Cap Value Fund is Bullish on Marriott Vacations Worldwide (VAC)

Hotchkis & Wiley Mid-Cap Value Fund is Bullish on Marriott Vacations Worldwide (VAC)

Tue, August 4, 2026 at 7:06 PM GMT+3 3 min read

• VAC +1.00%
• CL=F -5.31%

Hotchkis & Wiley, an investment management company, released its second-quarter 2026 investor letter for the "Hotchkis & Wiley Mid-Cap Value Fund." A copy of the letter can be downloaded here. Equity markets posted strong returns in the second quarter of 2026, with the Russell Midcap Index rising 13.8% and the Russell Midcap Value Index returning 13.4%, despite concerns about inflation, a hawkish Federal Reserve, and rising oil prices due to the Iran conflict. Narrow market leadership was evident, particularly semiconductor stocks and other stocks in the AI sector, which saw returns exceeding 100%. The Firm favors quality businesses with attractive valuations, believing that fears regarding AI's impact are overstated. The Hotchkis & Wiley Mid-Cap Value Fund lagged the Russell Midcap Value Index, achieving a 4.74% return in the second quarter, primarily due to underperformance in technology and energy sectors, while stock selection in healthcare contributed positively. In addition, please check the Fund's top five holdings to know its best picks in 2026.

In its Q2 2026 investor letter, Hotchkis & Wiley Mid-Cap Value Fund highlighted Marriott Vacations Worldwide Corporation (NYSE:VAC). Marriott Vacations Worldwide Corporation (NYSE:VAC), a leading vacation and timeshare ownership company, delivered strong performance during the quarter. On August 3, 2026, Marriott Vacations Worldwide Corporation (NYSE:VAC) closed at $97.40 per share, reflecting a market capitalization of $3.34 billion. Marriott Vacations Worldwide Corporation (NYSE:VAC) posted a one-month return of -1.96%, while its shares gained 33.46% over the past 52 weeks.

Hotchkis & Wiley Mid-Cap Value Fund stated the following regarding Marriott Vacations Worldwide Corporation (NYSE:VAC) in its Q2 2026 investor letter:

"Marriott Vacations Worldwide Corporation (NYSE:VAC) is one of the largest timeshare operators in the US, building, selling, financing, and managing upper-upscale and luxury resorts under the Marriott, Westin, Ritz-Carlton, and Hyatt brands, alongside a high-margin exchange business. We view it as a misunderstood, good-quality company whose branded network, affluent customer base with ~$1.5 million average net worth, and recurring financing and fee streams help insulate it from the cyclicality of travel. The stock outperformed this quarter as results topped low Street expectations, management maintained full-year guidance while raising its contract-sales outlook, and free cash flow generation remained strong."

Marriott Vacations Worldwide Corporation (NYSE:VAC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 30 hedge fund portfolios held Marriott Vacations Worldwide Corporation (NYSE:VAC) at the end of the first quarter, the same as in the previous quarter. While we acknowledge the potential of Marriott Vacations Worldwide Corporation (NYSE:VAC) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.

In another article, we covered Marriott Vacations Worldwide Corporation (NYSE:VAC) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.