Richard Pzena - Pzena Investment Management Llc Portfolio Q2’2025: Top Holdings & Recent Changes
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Richard Pzena, founder of Pzena Investment Management, continues to showcase his disciplined deep value approach in the latest Q2’2025 portfolio. With $30.8 billion spread across 152 positions, Pzena’s moves this quarter highlight a commitment to undervalued franchises and tactical adjustments in key sectors, reflecting both patience and opportunism in a shifting market landscape.
Portfolio Overview: Value Discipline Meets Diversification
Portfolio Highlights (Q2’2025): - Market Value: $30.8B - Top 10 Holdings: 38.7% - Portfolio Size: 152 +4 - Average Holding Period: 20 quarters - Turnover: 10.5%
The Pzena Investment Management portfolio remains a model of value investing at scale. While the top 10 holdings account for 38.7% of assets, the portfolio is notably diversified across 152 positions—an unusually broad approach for a value-focused manager. This breadth allows Pzena to capture opportunities across sectors while managing risk, yet the largest bets still reflect high conviction in select undervalued names.
A low turnover rate of 10.5% and an average holding period of 20 quarters (five years) underscore Pzena’s commitment to long-term investing. Incremental adjustments—rather than wholesale changes—define the strategy, with position sizing and sector tilts carefully managed to balance upside potential and downside protection. The modest increase in portfolio size (+4 positions) this quarter suggests ongoing research and selective entry into new opportunities.
Top Holdings Analysis: Tactical Shifts in Value
The portfolio’s top moves this quarter reveal a blend of conviction and tactical rebalancing. MAGNA INTL INC leads with a 5.1% weight after a 3.70% addition, signaling increased confidence in the auto parts sector. COGNIZANT TECHNOLOGY SOLUTIO 4.4% was also added to, reflecting a positive outlook on IT services. Meanwhile, DOLLAR GEN CORP NEW 4.4% saw a 7.22% reduction, suggesting a tactical trim after prior gains or shifting fundamentals.
Healthcare remains a focus, with BAXTER INTL INC 3.9% and HUMANA INC 3.2% both receiving meaningful additions of 6.97% and 6.47%, respectively. Financials are well represented: CITIGROUP INC 3.8% was increased by 1.82%, while CAPITAL ONE FINL CORP 3.8% and CHARTER COMMUNICATIONS INC N 3.5% were trimmed by 2.60% and 4.79%, respectively.
Notably, CVS HEALTH CORP 3.8% was reduced by 5.29%, reflecting a cautious stance on retail healthcare. The most dramatic move was a 57.26% increase in SKYWORKS SOLUTIONS INC 3.0%, indicating a strong conviction in the semiconductor space.
Other significant holdings rounding out the top 10-15 include a mix of consumer, healthcare, and technology names, each reflecting Pzena’s bottom-up research and valuation discipline.
What the Portfolio Reveals About Current Strategy
- Deep Value Focus: The portfolio is anchored in companies trading at discounts to intrinsic value, often in out-of-favor sectors.
- Sector Diversification: While financials, healthcare, and technology dominate, the breadth across 152 positions reduces idiosyncratic risk.
- Incremental Adjustments: Most changes are measured, reflecting a preference for gradual rebalancing over wholesale shifts.
- Long-Term Orientation: With a 20-quarter average holding period, Pzena’s approach is to let value realization play out over years, not months.
- Opportunistic Buying: The large addition to SKYWORKS SOLUTIONS INC demonstrates willingness to scale up when conviction is high.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| MAGNA INTL INC | $1,553.0M | 5.1% | Add 3.70% |
| COGNIZANT TECHNOLOGY SOLUTIO | $1,361.7M | 4.4% | Add 2.20% |
| DOLLAR GEN CORP NEW | $1,355.3M | 4.4% | Reduce 7.22% |
| BAXTER INTL INC | $1,191.1M | 3.9% | Add 6.97% |
| CITIGROUP INC | $1,155.5M | 3.8% | Add 1.82% |
| CVS HEALTH CORP | $1,155.2M | 3.8% | Reduce 5.29% |
| CAPITAL ONE FINL CORP | $1,153.5M | 3.8% | Reduce 2.60% |
| CHARTER COMMUNICATIONS INC N | $1,083.4M | 3.5% | Reduce 4.79% |
| HUMANA INC | $996.7M | 3.2% | Add 6.47% |
The table above highlights a relatively even distribution among the top 10 holdings, with no single position exceeding 5.1% of assets. This approach balances conviction with risk management, ensuring that no single misstep can derail overall performance. The mix of adds and reductions demonstrates active portfolio management, with Pzena willing to trim winners and double down on fresh opportunities as valuations shift.
Investment Lessons from Richard Pzena’s Value Discipline
- Diversification with Conviction: Even in a broad portfolio, the largest positions reflect deep research and high conviction.
- Patience Pays: A 20-quarter average holding period shows the importance of letting value theses play out.
- Incrementalism Over Drastic Moves: Small, steady adjustments can outperform reactionary trading.
- Sector Rotation with a Value Lens: Willingness to move capital between sectors as relative value emerges.
- Opportunistic Scaling: When conviction is high, as with SKYWORKS SOLUTIONS INC, Pzena is not afraid to act decisively.
Looking Ahead: What Comes Next?
With a modest turnover and a handful of new positions, Pzena Investment Management is well-positioned to capitalize on future dislocations in value stocks. The portfolio’s cash reserves and broad sector exposure provide flexibility to deploy capital as new bargains emerge. Investors should watch for continued tactical adds in technology and healthcare, as well as potential trims in consumer and financial names if valuations run ahead of fundamentals. As market volatility persists, Pzena’s disciplined approach and long-term horizon offer a steady hand for navigating uncertainty.
FAQ about Richard Pzena’s Portfolio
Q: What were the most significant changes in Pzena’s Q2’2025 portfolio?
A: The largest increase was a 57.26% addition to SKYWORKS SOLUTIONS INC, while DOLLAR GEN CORP NEW and CVS HEALTH CORP saw notable reductions.
Q: How concentrated is the portfolio?
A: The top 10 holdings make up 38.7% of assets, with no single position above 5.1%, reflecting a balance between diversification and conviction.
Q: What is Pzena’s approach to risk management?
A: Diversification across 152 positions, incremental adjustments, and a long holding period help mitigate risk while capturing upside in undervalued stocks.
Q: Which sectors does Pzena favor?
A: Financials, healthcare, and technology are prominent, but the portfolio is broadly diversified to capture value wherever it appears.
Q: How can I track Richard Pzena’s portfolio changes?
A: Use ValueSense’s Pzena Investment Management portfolio tracker for real-time updates and analysis. Remember, 13F filings are reported with a 45-day lag, so recent moves may not be immediately visible.
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