High Healthcare Concentration in Pzena's Portfolio (38.5%)
Hancock Classic Value's portfolio, managed by Richard Pzena as of March 31, 2026, shows a significant concentration in the Healthcare sector.
Portfolio Overview
The portfolio managed by Richard Pzena for Hancock Classic Value, as of March 31, 2026, exhibits a pronounced focus on the Healthcare sector, accounting for 38.5% of its holdings by value. This allocation is significantly higher than the Technology and Financial Services sectors combined, which each represent around 10% of the portfolio.
Top Holdings Analysis
The largest position by value is held in MAGNA INTL INC (MGA), contributing approximately $1.97 billion, or 6.4% of the total portfolio. Other significant holdings include several prominent Healthcare companies: BAXTER INTL INC (BAX), BRISTOL-MYERS SQUIBB CO (BMY), and HUMANA INC (HUM), each representing over 3% of the portfolio. Notably, the portfolio also includes substantial positions in Technology (COGNIZANT TECHNOLOGY SOLUTIONS (CTSH) and SKYWORKS SOLUTIONS INC (SWKS)) and Financial Services (CITIGROUP INC (C) and CAPITAL ONE FINL CORP (COF)).
Strategic Focus and Recent Changes
The portfolio's strategy appears heavily weighted towards established, value-oriented companies, particularly within the Healthcare sector. This suggests a preference for businesses with stable cash flows and potentially lower growth expectations, aligning with a value investing approach. Recent changes in holdings show mixed signals: while positions in BAX, C, and COF saw slight reductions, there was a significant increase in HUM (up 34.35%) and SWKS (up 27.57%). Conversely, declines were noted in MGA (-13%) and CTSH (-14.94%).
Concentration and Diversification
The portfolio demonstrates a clear concentration in Healthcare, which is the largest sector allocation. However, the inclusion of significant Technology and Financial Services positions suggests a multi-sector approach, albeit with a primary emphasis on Healthcare. The top ten holdings listed represent the core of the portfolio, indicating a relatively concentrated approach focused on these specific large-cap companies. Investors should be aware of the substantial exposure to the Healthcare sector and the specific companies highlighted within it.