The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
As of Sep 30, 2026
Pzena Focused Value Composite delivered a net return of 4.5% in the third quarter of 2026, advancing 13.5% net of fees year-to-date and outperforming the Russell 1000 Value Index quarterly return of 2.6%. The portfolio carries an active share of 95.2% across 36 holdings, trading at an undemanding valuation of 6.9x price to normalized earnings versus the benchmark multiple of 12.4x. Sector performance was led by information technology, health care, and industrials, whereas consumer discretionary and consumer staples detracted from absolute performance. The global macroeconomic environment remains challenged by rising bond yields, persistent inflation, and Middle East geopolitical tensions, yet broader equity market leadership has grown exceptionally concentrated in artificial intelligence infrastructure. Index concentration in a handful of mega-cap technology winners has left traditional benchmarks vulnerable and priced at elevated historical valuations. In contrast, valuation dispersion across unloved cyclicals, business services, and defensive value franchises has widened dramatically, offering an asymmetric entry point into companies where temporary operational headwinds or technological transition fears obscure underlying earnings power. During the quarter, the strategy initiated positions in Genpact, where concerns regarding artificial intelligence disintermediation of business process outsourcing were judged to be overstated, and global pharmaceutical leader Sanofi on attractive free cash flow yields supported by its core Dupixent franchise. The portfolio also expanded existing stakes in hospital operator Universal Health Services and life insurer Corebridge Financial. These purchases were funded by harvesting gains in Medicare Advantage insurer Humana, semiconductor supplier Skyworks Solutions, and pharmaceutical manufacturer Bristol Myers Squibb.
Classic value investing that exploits extreme market dispersion by purchasing durable, high-return franchises at low multiples of normalized earnings where cyclical downturns or perceived disruption risks are mispriced.
Valuation dispersion remains wide across global equities, creating attractive risk-reward profiles in businesses neglected by the artificial intelligence buildout narrative. Portfolios built around differentiated fundamental return drivers stand to benefit significantly once index concentration levels off.
Moderate Conviction Bullish
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