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, 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 Street
Suite 4000
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: Portfolio Manager & Co-Head
Phone: (213) 430-1858
Signature, Place, and Date of Signing:
Michael Baxter Los Angeles, California 90017 October 25, 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: 192
Form 13F Information Table Value Total: $6808069
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 4887 411600 SH SOLE 256600 0 155000
GROUPE AB SA ADR 39944Q109 826 348000 SH SOLE 240400 0 107600
AK STL HLDG CORP COMM 001547108 531 29100 SH SOLE 9500 0 19600
AT&T CORP COMM 001957109 148984 3424926 SH SOLE 2404502 0 1020424
ABBOTT LABS COMM 002824100 2314 63076 SH SOLE 1024 0 62052
AGRIUM INC COMM 008916108 207 20900 SH SOLE 0 0 20900
AIRNET SYS INC COMM 009417106 1405 154000 SH SOLE 154000 0 0
ALCOA INC COMM 013817101 107644 1734454 SH SOLE 1221954 0 512500
ALLSTATE CORP COMM 020002101 121701 4880260 SH SOLE 3345525 0 1534735
ALLTEL CORP COMM 020039103 152721 2170117 SH SOLE 1510622 0 659495
AMERICA ONLINE INC DEL COMM 02364J104 1260 12113 SH SOLE 0 0 12113
AMERICAN COIN MERCHANDISING IN COMM 02516B108 3121 861000 SH SOLE 570400 0 290600
AMERICAN GEN CORP COMM 026351106 89274 1411461 SH SOLE 993592 0 417869
AMERICAN HOME PRODS CORP COMM 026609107 5382 129700 SH SOLE 120400 0 9300
AMERICAN INTL GROUP INC COMM 026874107 1629 18743 SH SOLE 9492 0 9251.57
ANHEUSER BUSCH COS INC COMM 035229103 47325 675478 SH SOLE 598980 0 76498
AON CORP COMM 037389103 1098 37158 SH SOLE 19125 0 18033.75
APPLIED MATLS INC COMM 038222105 4281 55111 SH SOLE 2756 0 52355
ARMCO INC COMM 042170100 1935 276500 SH SOLE 95700 0 180800
ASSOCIATES FIRST CAP CORP COMM 046008108 6123 170104 SH SOLE 124830 0 45274
ATLANTIC RICHFIELD CO COMM 048825103 1196 13498 SH SOLE 12000 0 1498
AVTEAM INC COMM 054527205 6316 918700 SH SOLE 561300 0 357400
BANK OF AMERICA CORP COMM 060505104 5516 99063 SH SOLE 18039 0 81024
BANK ONE CORPORATION COMM 06423A103 100762 2894429 SH SOLE 1982608 0 911821
BAXTER INTL INC COMM 071813109 29136 483597 SH SOLE 275963 0 207634
BECTON DICKINSON & CO COMM 075887109 1835 65403 SH SOLE 3280 0 62123
BELL ATLANTIC CORP COMM 077853109 60706 901867 SH SOLE 602408 0 299459
BEVERLY ENTERPRISES INC COMM 087851309 2302 541800 SH SOLE 242000 0 299800
BRISTOL MYERS SQUIBB CO COMM 110122108 8472 125525 SH SOLE 59457 0 66068
CBRL GROUP INC COMM 12489V106 714 46100 SH SOLE 0 0 46100
CLECO CORPORATION COMM 12561W105 382 11800 SH SOLE 2600 0 9200
CMP GROUP INC COMM 125887109 8429 319600 SH SOLE 208700 0 110900
CMS ENERGY CORP COMM 125896100 84888 2501323 SH SOLE 1658423 0 842900
CSX CORP COMM 126408103 55577 1311569 SH SOLE 781569 0 530000
CADENCE DESIGN SYS INC COMM 127387108 2121 158636 SH SOLE 7778 0 150858
CANADIAN IMPERIAL BK COMM TORO COMM 136069101 38747 2012000 SH SOLE 1930641 0 81359
CARBIDE/GRAPHITE GROUP INC COMM 140777103 2888 334900 SH SOLE 233700 0 101200
CARLISLE COS INC COMM 142339100 410 10400 SH SOLE 0 0 10400
CENTEX CORP COMM 152312104 478 16200 SH SOLE 11800 0 4400
CENTRAL & SOUTH WEST CORP COMM 152357109 49615 2348669 SH SOLE 1709169 0 639500
CENTRAL HUDSON GAS & ELEC CORP COMM 153609102 614 15600 SH SOLE 3800 0 11800
CHASE MANHATTAN CORP NEW COMM 16161A108 2797 37113 SH SOLE 6725 0 30388
CITIGROUP INC COMM 172967101 707 16086 SH SOLE 3906 0 12180
COASTAL BANCORP INC COMM 19041P105 470 27052 SH SOLE 22500 0 4552
COMERICA INC COMM 200340107 931 18400 SH SOLE 18400 0 0
COMPUTER ASSOC INTL INC COMM 204912109 4213 68930 SH SOLE 2777 0 66153
CONAGRA INC COMM 205887102 1271 56338 SH SOLE 2867 0 53471
CONOCO INC COMM 208251405 65729 2401060 SH SOLE 1653132 0 747928
DTE ENERGY CO COMM 233331107 71161 1956321 SH SOLE 1173821 0 782500
DANA CORP COMM 235811106 110684 2981399 SH SOLE 2111038 0 870361
DEAN FOODS CO COMM 242361103 705 16200 SH SOLE 12700 0 3500
DEERE & CO COMM 244199105 641 16590 SH SOLE 16590 0 0
DELPHI AUTOMOTIVE SYSTEMS COMM 247126105 45195 2813727 SH SOLE 1961104. 0 852623.5
DILLARDS INC COMM 254067101 1149 56590 SH SOLE 890 0 55700
DISNEY WALT CO COMM 254687106 1309 50379 SH SOLE 50379 0 0
DOW CHEM CO COMM 260543103 99610 876661 SH SOLE 606661 0 270000
DUN & BRADSTREET CORP COMM 26483B106 1484 49700 SH SOLE 2510 0 47190
EARTHGRAINS CO COMM 270319106 1756 79400 SH SOLE 18200 0 61200
EASTERN ENTERPRISES COMM 27637F100 22585 486362 SH SOLE 355762 0 130600
EASTMAN CHEM CO COMM 277432100 60713 1522601 SH SOLE 1088501 0 434100
EASTMAN KODAK CO COMM 277461109 150703 1992771 SH SOLE 1385475 0 607296
EATON CORP COMM 278058102 12998 150600 SH SOLE 45000 0 105600
EDISON INTL COMM 281020107 76096 3129946 SH SOLE 1899646 0 1230300
ENGINEERING ANIMATION INC COMM 292872108 1315 83200 SH SOLE 43700 0 39500
ENHANCE FINL SVCS GROUP INC COMM 293310108 597 33800 SH SOLE 0 0 33800
ENTERGY CORP NEW COMM 29364G103 16604 573820 SH SOLE 564120 0 9700
FAIR ISAAC & CO INC COMM 303250104 808 28800 SH SOLE 0 0 28800
FDX CORPORATION COMM 31304N107 1887 48560 SH SOLE 2560 0 46000
FEDERAL NATIONAL MORTGAGE ASSO COMM 313586109 127864 2039712 SH SOLE 1443212 0 596500
FIRST MIDWEST BANCORP INC DEL COMM 320867104 1313 34400 SH SOLE 5600 0 28800
FIRST SEC CORP DEL COMM 336294103 64853 2727100 SH SOLE 1635300 0 1091800
FIRST UN CORP COMM 337358105 85163 2390563 SH SOLE 1671029 0 719534
FIRSTSERVICE CORP COMM 33761N109 556 46100 SH SOLE 26500 0 19600
FLEET FINL GROUP INC NEW COMM 338915101 10994 300182 SH SOLE 253682 0 46500
FORD MTR CO DEL COMM 345370100 177089 3524164 SH SOLE 2469635. 0 1054529
FORTUNE BRANDS INC COMM 349631101 60743 1883507 SH SOLE 1338807 0 544700
FOX ENTERTAINMENT GROUP INC COMM 35138T107 3803 180592 SH SOLE 8494 0 172098
FRIEDMANS INC COMM 358438109 6092 691400 SH SOLE 438600 0 252800
GATX CORP COMM 361448103 16886 543620 SH SOLE 246900 0 296720
GPU INC COMM 36225X100 32921 1009080 SH SOLE 558680 0 450400
GTE CORP COMM 362320103 89662 1166340 SH SOLE 703791 0 462549
GALILEO INTERNATIONAL COMM 363547100 1637 40684 SH SOLE 1928 0 38756
GENERAL ELEC CO COMM 369604103 6385 53857 SH SOLE 0 0 53857
GENERAL MTRS CORP COMM 370442105 139373 2214469 SH SOLE 1563569 0 650900
GEORGIA PAC CORP COMM 373298108 69970 1730328 SH SOLE 1198748 0 531580
GEORGIA PAC CORP COMM 373298702 58250 2546462 SH SOLE 1664062 0 882400
HARLEYSVILLE GROUP INC COMM 412824104 2954 210100 SH SOLE 90100 0 120000
HARSCO CORP COMM 415864107 55655 2014688 SH SOLE 1207334 0 807354
HAWK CORP COMM 420089104 2357 449100 SH SOLE 288500 0 160600
HONEYWELL INC COMM 438506107 3819 34310 SH SOLE 1416 0 32894
HORACE MANN EDUCATORS CORP NEW COMM 440327104 3110 120500 SH SOLE 56700 0 63800
HOUSEHOLD INTL INC COMM 441815107 104332 2600180 SH SOLE 1710626. 0 889554.2
HUMANA INC COMM 444859102 1341 195181 SH SOLE 10260 0 184921
HUTCHINSON TECHNOLOGY INC COMM 448407106 1452 53800 SH SOLE 25900 0 27900
ILLINOVA CORP COMM 452317100 143328 5107472 SH SOLE 3541872 0 1565600
INACOM CORP COMM 45323G109 3990 434308 SH SOLE 267648 0 166660
INTEL CORP COMM 458140100 2128 28643 SH SOLE 820 0 27823
INTERNATIONAL BUSINESS MACHS C COMM 459200101 5201 42988 SH SOLE 7893 0 35095
INTERNATIONAL PAPER CO COMM 460146103 200068 4162665 SH SOLE 2860245. 0 1302420
INTERSTATE BAKERIES CORP DEL N COMM 46072H108 4882 212300 SH SOLE 167200 0 45100
INTIMATE BRANDS INC COMM 461156101 4407 113200 SH SOLE 87790.8 0 25410
J & J SNACK FOODS CORP COMM 466032109 5111 258800 SH SOLE 155500 0 103300
JDA SOFTWARE GROUP INC COMM 46612K108 1566 134000 SH SOLE 25300 0 108700
JLG INDS INC COMM 466210101 770 50700 SH SOLE 16300 0 34400
KEYCORP NEW COMM 493267108 50971 1974684 SH SOLE 1454884 0 519800
LENNAR CORP COMM 526057104 1461 91700 SH SOLE 41400 0 50300
LILLY ELI & CO COMM 532457108 3411 53143 SH SOLE 1560 0 51583
LINCOLN NATL CORP IND COMM 534187109 64680 1721951 SH SOLE 1177395 0 544556
LOCKHEED MARTIN CORP COMM 539830109 116819 3573838 SH SOLE 2507760 0 1066078
MDU RES GROUP INC COMM 552690109 472 21000 SH SOLE 7500 0 13500
MAC-GRAY CORPORATION COMM 554153106 1200 184700 SH SOLE 91900 0 92800
MAXIM INTEGRATED PRODS INC COMM 57772K101 2760 43758 SH SOLE 2364 0 41394
MAY DEPT STORES CO COMM 577778103 83318 2286623 SH SOLE 1584543 0 702080
MERCK & CO INC COMM 589331107 1296 20000 SH SOLE 19000 0 1000
MERITOR AUTOMOTIVE INC COMM 59000G100 35784 1714224 SH SOLE 1207224 0 507000
MERRILL LYNCH & CO INC COMM 590188108 673 10000 SH SOLE 10000 0 0
MICROSOFT CORP COMM 594918104 7446 82227 SH SOLE 0 0 82227
MILLENNIUM CHEMICALS INC COMM 599903101 7627 373228 SH SOLE 222103 0 151125
MOLEX INC COMM 608554101 994 27334 SH SOLE 9534 0 17800.25
MOLEX INC COMM 608554200 884 27334 SH SOLE 9534 0 17800.25
MOTOROLA INC COMM 620076109 3026 34390 SH SOLE 1911 0 32479
NICOR INC COMM 654086107 3521 94700 SH SOLE 87500 0 7200
NORFOLK SOUTHN CORP COMM 655844108 89317 3645603 SH SOLE 2530008 0 1115595
NORTHROP GRUMMAN CORP COMM 666807102 144548 2274110 SH SOLE 1684910 0 589200
OCCIDENTAL PETE CORP COMM 674599105 151703 6560145 SH SOLE 4583373 0 1976772
OHIO CAS CORP COMM 677240103 9855 584042 SH SOLE 334642 0 249400
PECO ENERGY CO COMM 693304107 28849 769330 SH SOLE 764830 0 4500
PIMCO ADVISORS L P COMM 69338P102 1219 38700 SH SOLE 38700 0 0
P P & L RES INC COMM 693499105 38954 1439411 SH SOLE 992623 0 446788
PACIFICORP COMM 695114108 25008 1242680 SH SOLE 1008180 0 234500
PAYLESS SHOESOURCE INC COMM 704379106 4974 98500 SH SOLE 77900 0 20600
PENNEY J C INC COMM 708160106 97088 2814166 SH SOLE 1970155 0 844011
PEOPLES ENERGY CORP COMM 711030106 32316 918415 SH SOLE 578415 0 340000
PHELPS DODGE CORP COMM 717265102 36991 671802 SH SOLE 546902 0 124900
PHILIP MORRIS COS INC COMM 718154107 208211 6090290 SH SOLE 4375690 0 1714600
PHILLIPS PETE CO COMM 718507106 166774 3421007 SH SOLE 2414533 0 1006474
PITTSTON CO COMM 725701106 8901 383900 SH SOLE 235300 0 148600
PLAYBOY ENTERPRISES INC COMM 728117300 1064 39900 SH SOLE 19500 0 20400
POLO RALPH LAUREN CORPORATION COMM 731572103 1787 99664 SH SOLE 4947 0 94717
POTOMAC ELEC PWR CO COMM 737679100 1659 65224 SH SOLE 3925 0 61299
PUBLIC SVC CO N MEX COMM 744499104 465 25500 SH SOLE 4200 0 21300
PUBLIC SVC ENTERPRISE GROUP IN COMM 744573106 36372 941683 SH SOLE 739083 0 202600
PULTE CORP COMM 745867101 1096 50400 SH SOLE 20800 0 29600
RGS ENERGY GROUP INC COMM 74956K104 1163 47500 SH SOLE 5700 0 41800
RADISYS CORP COMM 750459109 1522 38780 SH SOLE 18620 0 20160
RALCORP HLDGS INC NEW COMM 751028101 4352 246100 SH SOLE 106400 0 139700
REYNOLDS METALS CO COMM 761763101 177994 2948143 SH SOLE 2025527 0 922616
ROCKWELL INTL CORP NEW COMM 773903109 50908 969681 SH SOLE 625981 0 343700
RUSSELL CORP COMM 782352108 39808 2805881 SH SOLE 1962381 0 843500
RYDER SYS INC COMM 783549108 17317 849934 SH SOLE 694834 0 155100
SBC COMMUNICATIONS INC COMM 78387G103 87912 1721660 SH SOLE 1191300 0 530360
SAFECO CORP COMM 786429100 79232 2829742 SH SOLE 1947311 0 882431
ST PAUL COS INC COMM 792860108 84646 3078040 SH SOLE 2109740 0 968300
SCANA CORP COMM 805898103 78590 3249238 SH SOLE 2208838 0 1040400
SEARS ROEBUCK & CO COMM 812387108 88332 2815390 SH SOLE 1922781 0 892609
SEIBELS BRUCE GROUP INC COMM 816006209 202 67500 SH SOLE 67500 0 0
SIGMA ALDRICH CORP COMM 826552101 944 29740 SH SOLE 26800 0 2940
SOUTHERN CO COMM 842587107 10881 422600 SH SOLE 349600 0 73000
STANCORP FINANCIAL GROUP INC COMM 852891100 1071 47900 SH SOLE 12400 0 35500
STONE & WEBSTER INC COMM 861572105 887 31700 SH SOLE 11700 0 20000
STONERIDGE INCORPORATED COMM 86183P102 1886 108600 SH SOLE 65800 0 42800
SYLVAN LEARNING SYS INC COMM 871399101 2462 127100 SH SOLE 61000 0 66100
SYSCO CORP COMM 871829107 1134 32370 SH SOLE 30000 0 2370
T-HQ INC COMM 872443403 4799 111300 SH SOLE 54200 0 57100
TRW INC COMM 872649108 108634 2183610 SH SOLE 1595810 0 587800
TECH DATA CORP COMM 878237106 1587 68200 SH SOLE 30600 0 37600
TENNECO INC NEW COMM 88037E101 110970 6527691 SH SOLE 4675789 0 1851902
TEXACO INC COMM 881694103 37742 597900 SH SOLE 397900 0 200000
TEXAS UTILS CO COMM 882848104 42682 1143920 SH SOLE 635497 0 508423
TITAN INTL INC COMM 88830M102 4189 408700 SH SOLE 306500 0 102200
TOLL BROS INC COMM 889478103 1052 55200 SH SOLE 10100 0 45100
TOTAL RENAL CARE HLDGS INC COMM 89151A107 6468 869700 SH SOLE 520500 0 349200
TOWER AUTOMOTIVE INC COMM 891707101 326 16500 SH SOLE 0 0 16500
UCAR INTL INC COMM 90262K109 816 35800 SH SOLE 9000 0 26800
UGI CORP NEW COMM 902681105 783 33700 SH SOLE 6100 0 27600
USX-MARATHON GROUP COMM 902905827 100223 3426449 SH SOLE 2518679 0 907770
USX-U S STL GROUP COMM 90337T101 120532 4680892 SH SOLE 3391192 0 1289700
ULTRAMAR DIAMOND SHAMROCK CORP COMM 904000106 65394 2564486 SH SOLE 1623186 0 941300
UNIONBANCAL CORP COMM 908906100 30131 831200 SH SOLE 587000 0 244200
US WEST INC COMM 91273H101 24655 432079 SH SOLE 219399 0 212680
VENTAS INC COMM 92276F100 1805 380200 SH SOLE 184200 0 196000
VETERINARY CENTERS OF AMERICA COMM 925514101 734 64200 SH SOLE 0 0 64200
WASHINGTON FED INC COMM 938824109 6861 295913 SH SOLE 254773 0 41140
WASHINGTON MUT INC COMM 939322103 129879 4440319 SH SOLE 3050963 0 1389356
WASTE MGMT INC COMM 94106L109 30430 1580798 SH SOLE 1075783 0 505015.5
WATSON PHARMACEUTICALS INC COMM 942683103 1505 49264 SH SOLE 2360 0 46904
WELLS FARGO & CO COMM 949746101 1913 48300 SH SOLE 21000 0 27300
WESTVACO CORP COMM 961548104 1409 55000 SH SOLE 0 0 55000
WEYERHAEUSER CO COMM 962166104 121773 2113205 SH SOLE 1430746 0 682459
WHIRLPOOL CORP COMM 963320106 103247 1580830 SH SOLE 1115980 0 464850
XEROX CORP COMM 984121103 122949 2931723 SH SOLE 1993019 0 938704
ROYAL DUTCH PETE CO NY REG SHRS 780257804 1949 33000 SH SOLE 18880 0 14120
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