Rich Pzena Q3 2025: Baxter Surge and Magna Strength Highlight a Classic Deep-Value Quarter

Rich Pzena’s disciplined value approach remains firmly intact heading into late 2025. According to the latest 13F filing for the quarter ended September 30 2025, Pzena Investment Management LLC reported a total portfolio value of $30.94 billion. The fund’s top 10 positions account for 39.2 % of total assets, underscoring a tightly focused deep-value strategy emphasizing cyclical recoveries and normalized earnings power.

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Top 5 Holdings

Magna International Inc. (MGA) now leads the portfolio at $1.92 billion (6.19 %) across 29 million shares, despite a slight trim of 434 k shares (–1.5 %). Pzena’s conviction in Magna’s long-term competitive moat—anchored by global exposure to auto electrification and efficient cost controls—remains strong as the company benefits from easing supply-chain headwinds.

Baxter International Inc. (BAX) follows closely at $1.31 billion (4.22 %) after a major addition of 18 million shares (+45.9 %). The position underscores Pzena’s enthusiasm for Baxter’s ongoing portfolio restructuring and margin recovery after years of underperformance. The move signals renewed confidence that the medical-device maker’s divestitures are unlocking intrinsic value.

Citigroup Inc. (C) sits third at $1.27 billion (4.11 %), with the firm cutting roughly 1 million shares (–7.7 %). Still, the position reflects Pzena’s long-held thesis that large U.S. banks trade well below normalized return potential and remain deeply undervalued versus tangible book value.

Dollar General Corp. (DG) ranks fourth at $1.21 billion (3.9 %), with a marginal reduction of 171 k shares (–1.5 %). The retailer’s rebound from execution challenges appears to align with Pzena’s preference for predictable, cash-generating franchises temporarily pressured by sentiment.

Rounding out the top five, CVS Health Corp. (CVS) holds $1.19 billion (3.86 %), though the firm sold 901 k shares (–5.4 %). CVS’s vertical integration and defensive healthcare footprint fit Pzena’s model of buying steady cash flows when market pessimism peaks.

Together, these five positions represent roughly 22 % of total portfolio value, spanning healthcare, financials, consumer staples, and industrials—core hunting grounds for long-term mean-reversion investors.

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Other Key Adjustments

Modest increases appeared in Cognizant Technology Solutions (CTSH) (+1.5 %) and MetLife (MET) (+5.8 %), while Wells Fargo (WFC) and Capital One (COF) were trimmed modestly, reflecting fine-tuning rather than thematic rotation. Notably, Humana (HUM) remained a sizable healthcare anchor at $1.05 billion (3.39 %), slightly trimmed.

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Full Exits

The quarter’s complete disposals included Shyft Group (SHYF), Synovus Financial (SNV), NatWest Group (NWG), ICICI Bank (IBN), Ulta Beauty (ULTA), and Alkermes (ALK S)—all smaller positions with weights below 0.2 %. These exits reflect continued consolidation toward higher-conviction U.S. large-caps and away from niche or foreign holdings.

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Outlook

Pzena’s Q3 2025 update reinforces its identity as one of the few enduring deep-value investors still thriving in a growth-obsessed market. Large additions to Baxter and steady positions in Magna and Citigroup illustrate a commitment to low-multiple, high-cash-flow companies positioned for cyclical normalization. As value remains discounted relative to growth, Pzena’s patience and discipline continue to define a portfolio built for long-term compounding through mean reversion rather than market momentum.