High Concentration in Healthcare: Richard Pzena's Hancock Classic Value Fund Focuses on Healthcare Giants
Hancock Classic Value's portfolio, managed by Richard Pzena as of March 31, 2026, shows a significant concentration in the Healthcare sector, particularly in large-cap companies.
Introduction
The portfolio managed by Richard Pzena for Hancock Classic Value, as of March 31, 2026, exhibits a distinct investment approach characterized by a high concentration in specific sectors and holdings. This analysis focuses on the value-weighted holdings and sector allocations, highlighting the fund's strategic positioning.
Sector Allocation: Heavy Healthcare Exposure
The fund's allocation tells a clear story: Healthcare is the dominant sector, accounting for approximately 38.5% of the portfolio's value. This is followed closely by Technology at around 16.5% and Financial Services at about 10.5%. Other sectors, including Consumer Cyclical, Consumer Defensive, and Healthcare (the latter being a sub-sector within the broader Healthcare allocation), represent the remaining 34.5%.
Top Holdings: Value-Weighted Leaders
When examining the portfolio by total stock value, several companies stand out. MAGNA INTL INC (MGA) leads with nearly $2 billion in value, representing about 6.4% of the portfolio. Other significant holdings include COGNIZANT TECHNOLOGY SOLUTIONS (CTSH) at $1.24 billion (4.0%), TYSON FOODS INC (TSN) at $1.10 billion (3.6%), BAXTER INTL INC (BAX) at $1.08 billion (3.5%), BRISTOL-MYERS SQUIBB CO (BMY) at $1.04 billion (3.4%), CVS HEALTH CORP (CVS) at $0.99 billion (3.2%), HUMANA INC (HUM) at $0.95 billion (3.1%), CITIGROUP INC (C) at $0.93 billion (3.0%), SKYWORKS SOLUTIONS INC (SWKS) at $0.86 billion (2.8%), and CAPITAL ONE FINL CORP (COF) at $0.84 billion (2.7%).
Recent Changes in Holdings
The fund has seen various changes in its top holdings compared to the previous period. Notably, BAXTER INTL INC (BAX) saw a reduction in its position, with shares decreasing by 7.88% and the number of shares falling by 7.88 million. Similarly, CITIGROUP INC (C) experienced a significant reduction, with shares down 22.98% and the number of shares decreasing by 2.44 million. On the positive side, HUMANA INC (HUM) saw a substantial increase, with shares growing by 34.35% and the number of shares rising by 1.4 million. Other companies like COGNIZANT TECHNOLOGY SOLUTIONS (CTSH) and SKYWORKS SOLUTIONS INC (SWKS) also increased their positions, by 14.94% and 27.57% respectively, while others like MAGNA INTL INC (MGA) and TYSON FOODS INC (TSN) saw slight decreases.
Investment Strategy Analysis
The portfolio's structure, with its heavy weighting towards large-cap Healthcare companies and significant allocations to Technology and Financial Services, suggests a value-oriented strategy focused on established, profitable businesses across various economic cycles. The fund appears to favor companies with strong competitive advantages and stable cash flows, which is common in the Healthcare and Financial Services sectors represented here. The concentration in Healthcare, while significant, is tempered by diversification into other sectors like Technology and Financial Services, indicating a balanced approach within the value framework. The changes in holdings reflect ongoing management decisions to optimize the portfolio based on valuation metrics and fundamental analysis.