Pzena Investment Management recently released its first-quarter 2026 commentary for “Pzena Focused Value Strategy.” A copy of the letter can be downloaded here. The equity market faced challenges in the first quarter due to the Iran conflict and the related energy price hike, compounded by continued AI-related uncertainty. Despite this volatility, energy stocks led the value index higher, but the portfolio fell short of the index and returned -4.7% (net) vs. 2.1% for the Russell 1000 Value Index. Despite the uncertainty, the firm believes that the current environment presents a strong long-term opportunity. In addition, you can check the Fund’s top five holdings to see its best picks for 2026.
In its first-quarter 2026 investor letter, Pzena Focused Value Strategy highlighted Humana Inc. (NYSE:HUM). Humana Inc. (NYSE:HUM) is an American insurance company that provides medical and specialty insurance products. On June 22, 2026, Humana Inc. (NYSE:HUM) closed at $360.72 per share. One-month return of Humana Inc. (NYSE:HUM) was 19.57%, and its shares gained 51.06% over the past 52 weeks. Humana Inc. (NYSE:HUM) has a market capitalization of $43.31 billion.
Pzena Focused Value Strategy stated the following regarding Humana Inc. (NYSE:HUM) in its Q1 2026 investor letter:
“The health care, financials, and technology sectors were the largest detractors from performance during the quarter. Medicare Advantage (MA) insurer Humana Inc. (NYSE:HUM) was the largest individual detractor after CMS (Centers for Medicare and Medicaid Services) proposed a disappointing preliminary MA rate update for 2027. Additionally, management projected rapid growth in its MA membership in 2026, which investors fear may reflect overly rich plan benefit design relative to peers. We view these risks as more timing-related than thesis-changing and added to our position on weakness.”
Humana Inc. (NYSE:HUM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 61 hedge fund portfolios held Humana Inc. (NYSE:HUM) at the end of the first quarter, up from 53 in the previous quarter. While we acknowledge the potential of Humana Inc. (NYSE:HUM) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
In another article, we covered Humana Inc. (NYSE:HUM) and shared billionaire Larry Robbins’ dividend stock picks. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
