Pzena Investment Management Q1 2026 13F Holdings and Activity Report

I. Institutional Overview

The institutional portrait of Pzena Investment Management is one of high conviction and patient capital. With 157 holdings in the portfolio, the firm strikes a sophisticated balance between diversification and concentrated bets. While 157 stocks might suggest a broad-market approach, a closer look at the weight distribution reveals that the firm is not afraid to lean heavily into its highest-conviction ideas. The top 10 holdings alone represent a significant portion of the total assets, indicating that while the firm monitors a wide universe of companies, it allocates the lion's share of its capital to a select group of "ballast stones." This structure allows Pzena to smooth out idiosyncratic risks through a diversified tail of smaller positions while driving alpha through its core, large-cap value allocations.

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II. Sector Allocation Analysis

The top three sectors—Financials, Technology, and Healthcare—collectively account for 60.12% of the total portfolio. This concentration level indicates a highly focused investment strategy. By placing over a fifth of its capital in Financials, Pzena is making a definitive statement on the interest rate environment and the health of the global banking and insurance systems. In a typical value framework, high financial exposure suggests a belief that the yield curve remains favorable for lending margins or that insurance companies are successfully repricing risk in an inflationary environment.

The significant weight in Technology (19.37%) is particularly interesting for a value-oriented firm. This suggests that Pzena is not looking at "high-flying" speculative tech, but rather at "Legacy Tech" or "Tech Services"—companies that have matured, possess strong recurring revenue, and are trading at reasonable multiples compared to their cash flow. This allocation likely represents a bet on the continued digital transformation of the global economy, where the "picks and shovels" providers (like IT services and semiconductor equipment) are valued more for their stability than for hyper-growth.

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III. Top 10 Holdings Deep Dive

The holding nature is clearly a "Conviction Holding." Pzena has held Magna for over three years, riding through the volatility of the automotive sector's transition to electric vehicles (EVs). The motivation for the recent reduction is likely "Strategic Profit Taking." As the automotive sector saw a relief rally in early 2026, Pzena likely chose to lock in some gains while maintaining Magna as its top position. Fundamental analysis suggests that Magna’s role as a contract manufacturer and a key supplier of powertrains and electronics makes it a "diversified bet" on the entire auto industry rather than a gamble on a single car brand. Pzena’s continued dominance in this stock shows a belief in the long-term recovery of global vehicle production volumes.

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IV. Major Buys/Additions

A remarkable trend in this quarter’s buys is the concentration in Technology Services and Consulting . Between the additions to Cognizant and Accenture, and the new positions in Globant and CDW, Pzena has deployed over $600 million into this single industry cluster. This reveals a profound macro judgment: Pzena believes the "implementation layer" of the technology stack is currently undervalued. While the market has obsessed over chipmakers (the "hardware layer"), Pzena is betting on the companies that actually help the world's corporations use that hardware. This is a sophisticated way to play the AI theme without paying the exorbitant multiples found in the semiconductor or software-as-a-service (SaaS) sectors.

The total estimated buy scale across these top targets exceeds $1.2 billion . When compared to the cash recouped from the major sells (discussed in Section V), it appears Pzena is engaged in a "Strategic Rotation." The firm is moving away from "Old Industrials" (like Dow Inc.) and "Retail" (like Dollar General) and funneling that capital into "High-Quality Services" (Accenture, Humana, Skyworks). This shift increases the portfolio's overall "offensiveness" and its exposure to secular growth drivers like healthcare aging and digital transformation, all while maintaining a strict value discipline.

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V. Major Sells and Exits

Pzena’s decision to slash this position by 35.40% qualifies as a "Strategic Retreat." This is not a simple trim; it is a fundamental reassessment of the company’s "margin of safety." When a value firm like Pzena exits such a large portion of a high-weight holding (originally 4.24%), it suggests they believe the structural challenges facing the "dollar store" model are more permanent than temporary. The capital recouped here was likely the primary source of funding for the new entries into higher-quality names like Accenture.

The complete exits from Comerica (CMA) , Charter Communications (CHTR) , and Goldman Sachs (GS) are also noteworthy. The exit from Goldman Sachs after more than 10 years is particularly symbolic. It suggests that Pzena is "cleaning the slate" of legacy positions that may no longer fit its forward-looking strategy. These exits, while smaller in dollar terms compared to the DG and DOW reductions, indicate a "portfolio slimming" effort—removing "tail" positions to focus more resources on the new, high-conviction buys in tech and healthcare.

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VI. Investment Insights and Risk Warnings

The logic chain is clear: 1. Sell the "Old Value" : Large-scale reductions in traditional retail (Dollar General), commodity chemicals (Dow), and legacy banking (Citigroup, Goldman Sachs) provided the necessary liquidity. 2. Buy the "Service Layer" : The firm has made a massive, coordinated bet on the technology services and consulting sector (Accenture, Cognizant, Globant, CDW). This suggests a belief that the "AI implementation cycle" is the most attractive value opportunity in the current market. 3. Double Down on Healthcare Distress : The aggressive addition to Humana shows a willingness to embrace extreme sector-specific volatility when the long-term demographic tailwinds remain intact.

This analysis report is provided for informational and educational purposes only and does not constitute professional investment advice, financial recommendations, or a solicitation to buy or sell any securities. The inferences made regarding institutional logic are based on historical data and market observation and are not guaranteed to be accurate. All investments involve risk, including the possible loss of principal. Investors should conduct their own thorough research and consult with a qualified financial advisor before making any investment decisions. Pzena Investment Management’s past performance is not indicative of future results.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

Sources and limitations

This report uses public U.S. Securities and Exchange Commission Form 13F disclosures and structured data maintained by 13F Hub. A 13F filing is a quarter-end snapshot of reportable long positions, is normally published with a delay, and does not disclose every short position, cash balance, bond, derivative, or non-U.S. asset.

Narrative content is prepared from the same-period SEC disclosure and 13F Hub structured data, then checked before publication. This material is for research and education, not personalized investment advice.