Pzena Investment Management Portfolio in 2026: Top Holdings & Recent Changes
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Pzena Investment Management, led by veteran value investor Richard Pzena, showcases its disciplined approach to deep-value investing in the latest 13F filing. Their $33.4B portfolio reflects measured adjustments across a broad set of 157 positions, with notable additions in healthcare and tech services alongside significant reductions in financials and retail, signaling confidence in turnaround stories trading at attractive valuations.
Portfolio Overview: Disciplined Scale with Proven Patience
Portfolio Highlights (Q4’2025): - Market Value: $33.4B - Top 10 Holdings: 39.4% - Portfolio Size: 157 +3 - Average Holding Period: 20 quarters - Turnover: 13.4%
Pzena Investment Management maintains its signature value-oriented strategy, balancing a massive $33.4B portfolio across 157 positions while keeping the top 10 at a moderate 39.4% concentration. This structure allows for diversification without diluting conviction, as evidenced by the low 13.4% turnover and an impressive average holding period of 20 quarters—over five years. These metrics underscore a patient approach, waiting for market mispricings to correct rather than chasing momentum.
The addition of three new positions brings the total to 157, reflecting ongoing opportunity hunting in undervalued names amid volatile markets. With such a long average hold, Pzena avoids short-term noise, focusing instead on intrinsic value recovery. Investors tracking this portfolio can appreciate how it embodies classic value tenets: buy quality at a discount, hold through cycles, and trim when valuations stretch.
This Q4 snapshot also highlights risk management through gradual adjustments rather than wholesale shifts, with turnover remaining subdued at 13.4%. For those emulating Pzena's style, the superinvestor page offers real-time updates on these dynamics.
Top Holdings: Healthcare Bets and Financial Fine-Tuning
The portfolio's core remains anchored by Magna International Inc. (MGA) at 6.4%, with a modest Add 0.16% signaling ongoing commitment to this auto parts leader. Cognizant Technology Solutions (CTSH) follows at 4.4% after a Reduce 0.46%, while Dollar General (DG) at 4.2% saw a sharper Reduce 8.57%, potentially reflecting concerns over retail headwinds.
Healthcare emerges as a bright spot, with Baxter International (BAX) boosted by Add 22.06% to 4.0% and Humana (HUM) increased via Add 1.02% to 3.1%, indicating bets on medical device and managed care recoveries. Financials show mixed signals: Citigroup (C) trimmed Reduce 15.30% to 3.7%, CVS Health (CVS) down Reduce 1.66% to 3.7%, and Capital One Financial (COF) slightly reduced Reduce 0.62% to 3.6%.
International exposure persists through UBS Group (UBS) with Add 0.09% to 3.3%, alongside a dramatic Amdocs (DOX) ramp-up of Add 82.57% to 2.9%, highlighting tech services conviction. These moves across the top tier—spanning autos, IT services, retail, healthcare, banks, and global finance—paint a picture of selective value hunting in beaten-down sectors.
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What the Portfolio Reveals
Pzena's Q4 actions reveal a strategy laser-focused on classic value plays in cyclical and defensive sectors. Heavy additions in healthcare like BAX (up 22%) and DOX (up 82%) suggest optimism for undervalued firms with strong balance sheets poised for earnings inflection.
- Sector Focus: Overweights in financials (C, COF, UBS) and healthcare (BAX, HUM, CVS) dominate, with trims in retail (DG) indicating caution on consumer spending.
- Geographic Concentration: U.S.-centric with European flavor via MGA (Canada) and UBS (Switzerland), diversifying beyond pure domestic exposure.
- Risk Management: Low turnover 13.4% and long holds (20 quarters avg) prioritize patience; sharp reduces like C -15% show disciplined profit-taking.
- Quality Over Growth: Positions emphasize proven cash generators at discounts, avoiding high-flyers for sustainable moats.
This mix balances cyclical recovery bets with defensive staples, aligning with Pzena's thesis of buying distress at scale.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| Magna International Inc. (MGA) | $2,130.2M | 6.4% | Add 0.16% |
| Cognizant Technology Solutions Corporation (CTSH) | $1,463.2M | 4.4% | Reduce 0.46% |
| Dollar General Corporation (DG) | $1,417.6M | 4.2% | Reduce 8.57% |
| Baxter International Inc. (BAX) | $1,338.6M | 4.0% | Add 22.06% |
| Citigroup Inc. (C) | $1,238.7M | 3.7% | Reduce 15.30% |
| CVS Health Corporation (CVS) | $1,236.5M | 3.7% | Reduce 1.66% |
| Capital One Financial Corporation (COF) | $1,216.9M | 3.6% | Reduce 0.62% |
| UBS Group AG (UBS) | $1,100.5M | 3.3% | Add 0.09% |
| Humana Inc. (HUM) | $1,043.0M | 3.1% | Add 1.02% |
| Amdocs Limited (DOX) | $969.1M | 2.9% | Add 82.57% |
The top 10 command 39.4% of the $33.4B portfolio, a balanced concentration that avoids over-reliance on any single name while amplifying high-conviction ideas like BAX and DOX. Notable reductions in DG -8.57% and C -15.30% freed capital for aggressive builds elsewhere, demonstrating dynamic position sizing.
This table illustrates Pzena's precision: no position exceeds 6.4%, yet changes are purposeful, with adds averaging in healthcare/tech and trims in pressured retail/finance. Such calibration supports the firm's low-turnover ethos, positioning the portfolio for multi-year compounding.
Investment Lessons from Pzena Investment Management
Pzena's Q4 13F filing distills timeless value principles into actionable insights:
- Patience Pays: 20-Quarter Average Holds – Success comes from owning businesses through full cycles, not trading on headlines.
- Aggressive Conviction in Turnarounds – Massive adds like DOX +82% show willingness to double down when valuations scream opportunity.
- Trim Winners Ruthlessly – Reduces in C and DG highlight discipline in rebalancing as theses evolve.
- Diversify Thoughtfully – 157 positions with 39% top-10 focus balances risk while concentrating on understood moats.
- Sector Rotation via Value Lens – Shift from retail/finance to healthcare/tech underscores hunting discounts in resilient sectors.
These lessons, trackable via ValueSense, empower retail investors to mimic institutional discipline.
Looking Ahead: What Comes Next?
Pzena's low 13.4% turnover and +3 positions suggest ample dry powder for 2026 deployments, especially if markets correct further. With heavy healthcare exposure via BAX and HUM, the portfolio is well-positioned for aging demographics and cost pressures favoring efficient providers.
Financial trims (C, COF) imply caution on rate sensitivity, potentially opening doors to industrials like expanded MGA or new cyclicals. In uncertain markets, Pzena's scale and patience set up for opportunistic buys, with the portfolio primed for value unlocks.
FAQ about Pzena Investment Management Portfolio
Q: What are the biggest changes in Pzena’s Q4 2025 13F filing?
A: Key moves include Add 82.57% to DOX, Add 22.06% to BAX, and significant reduces like 15.30% in C and 8.57% in DG, reallocating to healthcare and tech services.
Q: Why does Pzena maintain such a large portfolio with moderate top-10 concentration?
A: At 157 positions and 39.4% in the top 10, it balances diversification with conviction, allowing broad value hunting while sizing up the best deep-discount opportunities, per their long-term strategy.
Q: What sectors dominate Pzena’s portfolio strategy?
A: Financials, healthcare, and IT services lead, with recent adds in BAX and HUM boosting healthcare amid trims in retail like DG.
Q: How can I track Pzena Investment Management’s holdings and changes?
A: Use ValueSense's superinvestor tracker at https://valuesense.io/superinvestors/pzena-investment for real-time 13F updates—note the 45-day filing lag means positions may evolve post-report.
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