In its third-quarter 13F filing, Pzena Investment Management, a firm known for its classic deep-value investment philosophy, reported a total portfolio value of $34.10 billion. The firm's strategy focuses on buying good businesses that are underperforming their historical earnings power, with the belief that their problems are temporary. This disciplined, research-driven approach involves identifying undervalued companies and patiently waiting for their value to be recognized by the market.
The most significant change was a substantial increase in its holding of Globe Life (GL), more than doubling its stake and making it the largest addition of the quarter. The firm also initiated a significant new position in Microsoft (MSFT), signaling a new conviction in the technology giant. Other notable additions included increased stakes in Accenture (ACCENTURE PLC IRELAND), SS&C Technologies (SSNC), and LKQ Corporation (LKQ). The filing also revealed new, smaller positions in energy company Exxon Mobil (XOM) and GE HealthCare (GEHC).
Conversely, Pzena trimmed several of its top holdings, including high-strength reductions in Magna International (MGA) and Humana (HUM). The firm also reduced its exposure to Skyworks Solutions (SWKS), Bristol-Myers Squibb (BMY), and CVS Health (CVS). Notably, Pzena completely exited its positions in Cisco Systems (CSCO) and another holding, reflecting a strategic shift away from those specific investments.