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, 1999
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, A Divison of Merrill Lynch Asset Management, L.P.
Address: 725 South Figueroa
Suite 400
Los Angeles, California 90017
13F File Number:
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: Michael Baxter
Title: Managing Director
Phone: (213) 430-1858
Signature, Place, and Date of Signing:
Michael Baxter Los Angeles, California 90017 August 06, 1999
Hotchkis & Wiley ("H&W") is a division of Merrill Lynch Asset
Management, L.P.("MLAM"), which is an institutional investment manager
subject to reporting requirements under Section 13(f) of the
Securities Exchange Act of 1934 and the rules promulgated thereunder.
The Securities positions managed by H&W are reported herein, but are not
reported in the Form 13F filed by Fund Asset Management, L.P. on behalf
of itself and MLAM.
MLAM and H&W are indirect wholly-owned units of Merrill Lynch & Co., Inc.
The securities positions of H&W reported herein are also being reported on
behalf of ML&Co. which may be deemed to share with H&W investment
discretion with respect to such positions.
Report Type (Check only one.):
[X] 13F HOLDING REPORT.
[ ] 13F NOTICE.
[ ] 13F COMBINATION REPORT
I AM SIGNING THIS REPORT AS REQUIRED BY THE SECURITIES EXHCANGE
ACT OF 1934.
<PAGE>
FORM 13F SUMMARY PAGE
Report Summary:
Number of Other Included Managers: 0
Form 13F Information Table Entry Total: 193
Form 13F Information Table Value Total: $7845338
List of Other Included Managers:
NONE
<PAGE>
<TABLE>
<CAPTION>
FORM 13F INFORMATION TABLE
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Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Column 8
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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
- ------------------------------ ---------------- --------- -------- -------- --- ---- ------- ------------ -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DENISON INTERNATIONAL PLC ADR 248335101 6675 434200 SH SOLE 264600 0 169600
GROUPE AB SA ADR 39944Q109 2147 660880 SH SOLE 444200 0 216680
AK STL HLDG CORP COMM 001547108 654 29100 SH SOLE 9500 0 19600
AT&T CORP COMM 001957109 196486 3520477 SH SOLE 2491402. 0 1029074.
ABBOTT LABS COMM 002824100 3151 69459 SH SOLE 2871 0 66588
AIRNET SYS INC COMM 009417106 4419 327400 SH SOLE 327400 0 0
ALCOA INC COMM 013817101 161289 2606704 SH SOLE 1821024 0 785680
ALLEGHENY TELEDYNE INC COMM 017415100 1169 51669 SH SOLE 51669 0 0
ALLSTATE CORP COMM 020002101 2242 62500 SH SOLE 22414 0 40086
ALLTEL CORP COMM 020039103 159544 2231387 SH SOLE 1565297 0 666090
AMERICA ONLINE INC DEL COMM 02364J104 1309 11900 SH SOLE 0 0 11900
AMERICAN COIN MERCHANDISING IN COMM 02516B108 5668 872100 SH SOLE 570400 0 301700
AMERICAN GEN CORP COMM 026351106 105671 1401941 SH SOLE 986638 0 415303
AMERICAN HOME PRODS CORP COMM 026609107 11136 194101 SH SOLE 130030 0 64071
AMERICAN INTL GROUP INC COMM 026874107 1758 14995 SH SOLE 7593.75 0 7401.25
ANHEUSER BUSCH COS INC COMM 035229103 56854 801478 SH SOLE 749090 0 52388
AON CORP COMM 037389103 1532 37158 SH SOLE 19125 0 18033.75
APRIA HEALTHCARE GROUP INC COMM 037933108 336 19800 SH SOLE 7800 0 12000
APPLIED MATLS INC COMM 038222105 3363 45526 SH SOLE 2865 0 42661
ARMCO INC COMM 042170100 1262 190600 SH SOLE 70200 0 120400
ASSOCIATES FIRST CAP CORP COMM 046008108 13337 302258 SH SOLE 256984 0 45274
ATLANTIC RICHFIELD CO COMM 048825103 95441 1142163 SH SOLE 778352 0 363811
AVTEAM INC COMM 054527205 8635 1180900 SH SOLE 719000 0 461900
BANK OF AMERICA CORP COMM 060505104 10810 147461 SH SOLE 25049 0 122412
BANK NEW YORK INC COMM 064057102 1100 30000 SH SOLE 30000 0 0
BANK ONE CORPORATION COMM 06423A103 171460 2878669 SH SOLE 2017102 0 861567
BAXTER INTL INC COMM 071813109 33409 551085 SH SOLE 307630 0 243455
BELL ATLANTIC CORP COMM 077853109 67279 1029132 SH SOLE 675894 0 353238
BEVERLY ENTERPRISES INC COMM 087851309 2656 329500 SH SOLE 185300 0 144200
BRISTOL MYERS SQUIBB CO COMM 110122108 9568 135843 SH SOLE 66453 0 69390
BROWN TOM INC COMM 115660201 779 50100 SH SOLE 14300 0 35800
BROWNING FERRIS INDS INC COMM 115885105 120084 2792653 SH SOLE 1956102 0 836551
CMP GROUP INC COMM 125887109 10713 409100 SH SOLE 260100 0 149000
CMS ENERGY CORP COMM 125896100 106480 2542823 SH SOLE 1699923 0 842900
CSX CORP COMM 126408103 60535 1334108 SH SOLE 790069 0 544039
CADENCE DESIGN SYS INC COMM 127387108 1654 131026 SH SOLE 7508 0 123518
CAMBRIDGE TECHNOLOGY PARTNERS COMM 132524109 4659 265300 SH SOLE 164200 0 101100
CANADIAN IMPERIAL BK COMM TORO COMM 136069101 47340 1996170 SH SOLE 1914811 0 81359
CANANDAIGUA WINE INC COMM 137219200 2144 40900 SH SOLE 15800 0 25100
CARBIDE/GRAPHITE GROUP INC COMM 140777103 5219 364700 SH SOLE 250400 0 114300
CENTRAL & SOUTH WEST CORP COMM 152357109 56240 2405999 SH SOLE 1766499 0 639500
CENTRAL HUDSON GAS & ELEC CORP COMM 153609102 470 11200 SH SOLE 3800 0 7400
CHASE MANHATTAN CORP NEW COMM 16161A108 2682 31010 SH SOLE 6635 0 24375
CITIGROUP INC COMM 172967101 2872 60480 SH SOLE 1699.5 0 58780.5
COASTAL BANCORP INC COMM 19041P105 456 27052 SH SOLE 22500 0 4552
COMERICA INC COMM 200340107 1093 18400 SH SOLE 18400 0 0
COMPUTER ASSOC INTL INC COMM 204912109 2745 50144 SH SOLE 2364 0 47780
CONAGRA INC COMM 205887102 1162 43670 SH SOLE 2830 0 40840
DTE ENERGY CO COMM 233331107 81496 1999921 SH SOLE 1214421 0 785500
DANA CORP COMM 235811106 140831 3057411 SH SOLE 2166972 0 890439
DEAN FOODS CO COMM 242361103 1849 44500 SH SOLE 28500 0 16000
DEERE & CO COMM 244199105 13008 331944 SH SOLE 217544 0 114400
DELPHI AUTOMOTIVE SYSTEMS COMM 247126105 41908 2265342 SH SOLE 1607214. 0 658127.3
DILLARDS INC COMM 254067101 1574 44818 SH SOLE 1000 0 43818
DISNEY WALT CO COMM 254687106 1552 50379 SH SOLE 50379 0 0
DOW CHEM CO COMM 260543103 115126 907401 SH SOLE 635301 0 272100
DU PONT E I DE NEMOURS & CO COMM 263534109 21995 321988 SH SOLE 224290 0 97698
DUN & BRADSTREET CORP COMM 26483B106 1541 43502 SH SOLE 2510 0 40992
EARTHGRAINS CO COMM 270319106 1814 70300 SH SOLE 27900 0 42400
EASTERN ENTERPRISES COMM 27637F100 23717 596662 SH SOLE 455062 0 141600
EASTMAN CHEM CO COMM 277432100 62040 1198851 SH SOLE 826351 0 372500
EASTMAN KODAK CO COMM 277461109 138969 2051207 SH SOLE 1429720 0 621487
EATON CORP COMM 278058102 20240 220000 SH SOLE 57000 0 163000
EDISON INTL COMM 281020107 84780 3169346 SH SOLE 1936046 0 1233300
ENGINEERING ANIMATION INC COMM 292872108 1887 89100 SH SOLE 43700 0 45400
ENTERGY CORP NEW COMM 29364G103 18888 604420 SH SOLE 594720 0 9700
EXECUTIVE RISK INC COMM 301586103 4772 56100 SH SOLE 27100 0 29000
FDX CORPORATION COMM 31304N107 2036 37548 SH SOLE 2160 0 35388
FEDERAL NATIONAL MORTGAGE ASSO COMM 313586109 140420 2057438 SH SOLE 1467942 0 589496
FIRST MIDWEST BANCORP INC DEL COMM 320867104 826 20800 SH SOLE 5600 0 15200
FIRST SEC CORP DEL COMM 336294103 74607 2737900 SH SOLE 1646100 0 1091800
FIRST UN CORP COMM 337358105 112625 2389923 SH SOLE 1680389 0 709534
FIRSTSERVICE CORP COMM 33761N109 703 46100 SH SOLE 26500 0 19600
FLEET FINL GROUP INC NEW COMM 338915101 13915 313582 SH SOLE 266082 0 47500
FOOD LION INC COMM 344775200 568 47834 SH SOLE 2145 0 45689
FORD MTR CO DEL COMM 345370100 205508 3641352 SH SOLE 2570344. 0 1071008
FORTUNE BRANDS INC COMM 349631101 80569 1947307 SH SOLE 1400607 0 546700
FOX ENTERTAINMENT GROUP INC COMM 35138T107 4013 148984 SH SOLE 8114 0 140870
FRIEDMANS INC COMM 358438109 5280 607800 SH SOLE 390200 0 217600
GATX CORP COMM 361448103 21441 563320 SH SOLE 248100 0 315220
GPU INC COMM 36225X100 44968 1065925 SH SOLE 569530 0 496395
GTE CORP COMM 362320103 89206 1181537 SH SOLE 721013 0 460524
GALILEO INTERNATIONAL COMM 363547100 1789 33491 SH SOLE 1928 0 31563
GENERAL ELEC CO COMM 369604103 5870 51951 SH SOLE 0 0 51951
GENERAL MTRS CORP COMM 370442105 149916 2271469 SH SOLE 1615569 0 655900
GEORGIA PAC CORP COMM 373298108 78781 1662928 SH SOLE 1165948 0 496980
GEORGIA PAC CORP COMM 373298702 65169 2580962 SH SOLE 1698562 0 882400
HARLEYSVILLE GROUP INC COMM 412824104 4264 208000 SH SOLE 88000 0 120000
HARSCO CORP COMM 415864107 65791 2055988 SH SOLE 1239834 0 816154
HAWK CORP COMM 420089104 3305 375100 SH SOLE 277600 0 97500
HONEYWELL INC COMM 438506107 3087 26644 SH SOLE 1416 0 25228
HORACE MANN EDUCATORS CORP NEW COMM 440327104 1620 59600 SH SOLE 14600 0 45000
HOUSEHOLD INTL INC COMM 441815107 126318 2666343 SH SOLE 1765090. 0 901253.0
HUMANA INC COMM 444859102 1560 120616 SH SOLE 7030 0 113586
HUTCHINSON TECHNOLOGY INC COMM 448407106 4753 171300 SH SOLE 91900 0 79400
ILLINOVA CORP COMM 452317100 142647 5234758 SH SOLE 3652958 0 1581800
INACOM CORP COMM 45323G109 9813 777308 SH SOLE 480348 0 296960
INTEL CORP COMM 458140100 3241 54472 SH SOLE 2020 0 52452
INTERNATIONAL BUSINESS MACHS C COMM 459200101 4866 37648 SH SOLE 7438 0 30210
INTERNATIONAL PAPER CO COMM 460146103 215981 4298137 SH SOLE 2989717 0 1308420
INTERSTATE BAKERIES CORP DEL N COMM 46072H108 5748 256200 SH SOLE 183700 0 72500
INTIMATE BRANDS INC COMM 461156101 14649 309232 SH SOLE 283822.3 0 25410
J & J SNACK FOODS CORP COMM 466032109 7214 300600 SH SOLE 185900 0 114700
JDA SOFTWARE GROUP INC COMM 46612K108 642 69000 SH SOLE 8900 0 60100
JLG INDS INC COMM 466210101 1896 93100 SH SOLE 46700 0 46400
JOHNSON & JOHNSON COMM 478160104 4337 44258 SH SOLE 4576 0 39682
KEYCORP NEW COMM 493267108 64519 2008384 SH SOLE 1488584 0 519800
LIMITED INC COMM 532716107 1381 30456 SH SOLE 950 0 29506
LINCARE HLDGS INC COMM 532791100 307 12300 SH SOLE 4500 0 7800
LINCOLN NATL CORP IND COMM 534187109 92810 1774158 SH SOLE 1235078 0 539080
LOCKHEED MARTIN CORP COMM 539830109 133037 3571470 SH SOLE 2510660 0 1060810
MDU RES GROUP INC COMM 552690109 476 20900 SH SOLE 7500 0 13400
MAC-GRAY CORPORATION COMM 554153106 1391 159000 SH SOLE 84100 0 74900
MAXIM INTEGRATED PRODS INC COMM 57772K101 2727 41019 SH SOLE 2427 0 38592
MAY DEPT STORES CO COMM 577778103 81848 2002418 SH SOLE 1496023 0 506395
MERCK & CO INC COMM 589331107 1693 23000 SH SOLE 22000 0 1000
MERITOR AUTOMOTIVE INC COMM 59000G100 8308 325833 SH SOLE 234733 0 91100
MERRILL LYNCH & CO INC COMM 590188108 795 10000 SH SOLE 10000 0 0
MICROSOFT CORP COMM 594918104 7265 80565 SH SOLE 0 0 80565
MIDWAY GAMES INC COMM 598148104 4150 320800 SH SOLE 174900 0 145900
MILLENNIUM CHEMICALS INC COMM 599903101 8151 345963 SH SOLE 218433 0 127530
MOLEX INC COMM 608554101 1011 27334 SH SOLE 9534 0 17800.25
MOLEX INC COMM 608554200 861 27334 SH SOLE 9534 0 17800.25
MONSANTO CO COMM 611662107 454 11500 SH SOLE 7500 0 4000
MOTOROLA INC COMM 620076109 3058 32276 SH SOLE 2900 0 29376
NICOR INC COMM 654086107 4506 118400 SH SOLE 111200 0 7200
NORFOLK SOUTHN CORP COMM 655844108 94740 3144906 SH SOLE 2126472 0 1018434
NORTHROP GRUMMAN CORP COMM 666807102 154956 2336760 SH SOLE 1731510 0 605250
OCCIDENTAL PETE CORP COMM 674599105 142571 6748941 SH SOLE 4728590 0 2020351
OHIO CAS CORP COMM 677240103 10610 293721 SH SOLE 169021 0 124700
PECO ENERGY CO COMM 693304107 35224 841185 SH SOLE 818015 0 23170
P P & L RES INC COMM 693499105 45437 1477647 SH SOLE 1030859 0 446788
PPG INDS INC COMM 693506107 756 12800 SH SOLE 5000 0 7800
PACIFICORP COMM 695114108 23587 1283680 SH SOLE 1049180 0 234500
PAYLESS SHOESOURCE INC COMM 704379106 4713 88100 SH SOLE 49600 0 38500
PENNEY J C INC COMM 708160106 137029 2821705 SH SOLE 2000105 0 821600
PEOPLES ENERGY CORP COMM 711030106 35460 940915 SH SOLE 600915 0 340000
PHELPS DODGE CORP COMM 717265102 42637 688402 SH SOLE 563502 0 124900
PHILIP MORRIS COS INC COMM 718154107 248734 6189339 SH SOLE 4456686 0 1732653
PHILLIPS PETE CO COMM 718507106 178453 3546898 SH SOLE 2514514 0 1032384
PITTSTON CO COMM 725701106 10041 375400 SH SOLE 254100 0 121300
PLAYBOY ENTERPRISES INC COMM 728117300 3041 114500 SH SOLE 50100 0 64400
POLO RALPH LAUREN CORPORATION COMM 731572103 1609 84700 SH SOLE 4830 0 79870
POTOMAC ELEC PWR CO COMM 737679100 1242 42220 SH SOLE 1590 0 40630
PUBLIC SVC CO N MEX COMM 744499104 319 16100 SH SOLE 4200 0 11900
PUBLIC SVC ENTERPRISE GROUP IN COMM 744573106 39085 957683 SH SOLE 750083 0 207600
RADIAN GROUP INC COMM 750236101 790 16200 SH SOLE 7700 0 8500
RADISYS CORP COMM 750459109 3868 99500 SH SOLE 56970 0 42530
RALCORP HLDGS INC NEW COMM 751028101 2299 142600 SH SOLE 34400 0 108200
REYNOLDS METALS CO COMM 761763101 147483 2499718 SH SOLE 1754010 0 745708
ROCHESTER GAS & ELEC CORP COMM 771367109 435 16400 SH SOLE 5700 0 10700
ROCKWELL INTL CORP NEW COMM 773903109 69101 1137481 SH SOLE 690481 0 447000
RUSSELL CORP COMM 782352108 54379 2788681 SH SOLE 1976881 0 811800
RYDER SYS INC COMM 783549108 23435 910134 SH SOLE 739034 0 171100
SBC COMMUNICATIONS INC COMM 78387G103 103005 1775958 SH SOLE 1240598 0 535360
SAFECO CORP COMM 786429100 126136 2858622 SH SOLE 1977011 0 881611
ST PAUL COS INC COMM 792860108 95228 2993440 SH SOLE 2047240 0 946200
SCANA CORP COMM 805898103 57145 2444738 SH SOLE 1540038 0 904700
SEARS ROEBUCK & CO COMM 812387108 79090 1774819 SH SOLE 1136238 0 638581
SEIBELS BRUCE GROUP INC COMM 816006209 337 67500 SH SOLE 67500 0 0
SIGMA ALDRICH CORP COMM 826552101 1024 29740 SH SOLE 26800 0 2940
SOUTHERN CO COMM 842587107 12190 460000 SH SOLE 387000 0 73000
STERLING COMM INC COMM 859205106 2470 67212 SH SOLE 2580 0 64632
STONE & WEBSTER INC COMM 861572105 1094 41100 SH SOLE 11700 0 29400
STONERIDGE INCORPORATED COMM 86183P102 1502 107300 SH SOLE 61700 0 45600
SYSCO CORP COMM 871829107 965 32370 SH SOLE 30000 0 2370
T-HQ INC COMM 872443403 1549 53900 SH SOLE 29100 0 24800
TRW INC COMM 872649108 105451 1921670 SH SOLE 1413770 0 507900
TECH DATA CORP COMM 878237106 4232 110650 SH SOLE 56250 0 54400
TENNECO INC NEW COMM 88037E101 135968 5695029 SH SOLE 4086939 0 1608090
TEXACO INC COMM 881694103 53698 860900 SH SOLE 558500 0 302400
TEXAS UTILS CO COMM 882848104 48149 1161979 SH SOLE 642554 0 519425
TITAN INTL INC COMM 88830M102 4697 395600 SH SOLE 306500 0 89100
TOTAL RENAL CARE HLDGS INC COMM 89151A107 8072 518700 SH SOLE 321700 0 197000
TRANSAMERICA CORP COMM 893485102 83053 1107378 SH SOLE 774878 0 332500
UCAR INTL INC COMM 90262K109 2060 81600 SH SOLE 9000 0 72600
UGI CORP NEW COMM 902681105 429 21300 SH SOLE 6100 0 15200
USX-MARATHON GROUP COMM 902905827 113835 3495916 SH SOLE 2607149 0 888767
UST INC COMM 902911106 355 12115 SH SOLE 12115 0 0
USX-U S STL GROUP COMM 90337T101 129170 4784082 SH SOLE 3488382 0 1295700
ULTRAMAR DIAMOND SHAMROCK CORP COMM 904000106 56504 2590486 SH SOLE 1649186 0 941300
UNIONBANCAL CORP COMM 908906100 30565 846100 SH SOLE 599900 0 246200
US WEST INC COMM 91273H101 30237 514679 SH SOLE 255999 0 258680
VENTAS INC COMM 92276F100 1777 330700 SH SOLE 210400 0 120300
WASHINGTON FED INC COMM 938824109 6482 288913 SH SOLE 247773 0 41140
WASHINGTON MUT INC COMM 939322103 145553 4092884 SH SOLE 2865705 0 1227179
WASTE MGMT INC COMM 94106L109 85075 1582805 SH SOLE 1144363. 0 438442
WELLS FARGO & CO COMM 949746101 2364 55300 SH SOLE 28000 0 27300
WESTVACO CORP COMM 961548104 1595 55000 SH SOLE 0 0 55000
WEYERHAEUSER CO COMM 962166104 148815 2164592 SH SOLE 1479976 0 684616
WHIRLPOOL CORP COMM 963320106 164863 2227880 SH SOLE 1569880 0 658000
XEROX CORP COMM 984121103 2245 38022 SH SOLE 18000 0 20022
ROYAL DUTCH PETE CO NY REG SHRS 780257804 1961 32560 SH SOLE 18360 0 14200
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