Staying true to his deep-value convictions, Rich Pzena executed a sweeping portfolio overhaul in Q1 2026. He aggressively raised exposure to healthcare and consumer staples while making the rare move of adding Korean telecom name KT to his global value portfolio. With $18.8B in AUM concentrated across just 20 holdings, the portfolio is a testament to his high-conviction approach.
Top 5 Holdings — Q1 2026
- MGA: $2.0B (6.4%)
- CTSH: $1.2B (4.0%)
- TSN: $1.1B (3.6%)
- BAX: $1.1B (3.5%)
- BMY: $1.0B (3.4%)
Key Trading Activity This Quarter
MGA remains the top holding at $2.0B (6.4%), retaining its position at the top of the portfolio. The most notable shift is an intensified focus on the healthcare sector. HUM was expanded by 34% to $949M, while BMY and CVS held their upper-tier positions at approximately $1.0B and $989M, respectively. BAX was also maintained at roughly $1.1B, ranking fourth in the portfolio. The pattern is clear: Pzena is making a contrarian bet on healthcare names whose valuations have been compressed by cost pressures and sector uncertainty.
- HUM +34% increase — contrarian bet on healthcare valuation floor, weight rising to 3.1% of portfolio
- KT new position ($154M) — an unusual move to include a Korean telecom name in a global deep-value portfolio
- CMA, CHTR, GS fully liquidated; GD cut by 63% — complete exit from regional banks, media, and defense exposure
Among new initiations, KT ($154M) stands out most. Adding a major Korean telecom carrier to a global value portfolio is unconventional, and the position appears to target both AI infrastructure tailwinds and dividend yield simultaneously. IT services firm Globant S.A. ($137M) and enterprise IT distributor CDW ($135M) were also initiated, broadening the technology value exposure. On the sell side, CMA, CHTR, and GS were fully liquidated, and GD was slashed by 63%, significantly reducing defense sector exposure. CTSH was added to by 15% and TSN by 12%, reflecting expectations for a recovery in IT outsourcing and food industry fundamentals, respectively.
Concentration and Conviction: Pzena's Next Contrarian Move
Pzena's portfolio is a high-concentration structure — $18.8B packed into just 20 names. Doubling down on HUM, BAX, and BMY in a market clouded by healthcare policy uncertainty and slowing growth is a textbook contrarian value play. The KT initiation reads as an effort to diversify income streams into a high-dividend emerging market telecom at a time of dollar strength. Given Pzena's core philosophy of trusting intrinsic value reversion over short-term volatility, the catalyst to watch for this portfolio will be the timing of a healthcare sector recovery.
