Richard Pzena's Strategic Moves: Equitable Holdings Inc. Sees Significant Reduction

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Fri, Feb 7, 2025, 4:56 PM 3 min read

Insight into Richard Pzena (Trades, Portfolio)'s Fourth Quarter 2024 13F Filing

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Richard Pzena (Trades, Portfolio) recently submitted the 13F filing for the fourth quarter of 2024, providing insights into his investment moves during this period. Richard Pzena (Trades, Portfolio) is the founder and Co-Chief Investment Officer of Pzena Investment Management, LLC. Pzena started the firm in 1995. He earned a BS summa cum laude from the Wharton School in 1979 and an MBA from the University of Pennsylvania in 1980. Pzena's philosophy is based on ranking companies from the cheapest to the most expensive on the basis of how their current share price compares to their normal long-term earnings power. He purchases shares in good businesses that are selling at a low price. He understands that it is often unrealistic to expect such opportunities to be available absent some sort of problem which causes the price of the shares to drop. The question Pzena and his team try to answer is whether the issue that caused the drop in price is temporary or permanent.

Summary of New Buy

Richard Pzena (Trades, Portfolio) added a total of 7 stocks, among them:

The most significant addition was Envista Holdings Corp (NYSE:NVST), with 880,177 shares, accounting for 0.06% of the portfolio and a total value of $16.98 million.
The second largest addition to the portfolio was Tapestry Inc (NYSE:TPR), consisting of 286,799 shares, representing approximately 0.06% of the portfolio, with a total value of $18.74 million.
The third largest addition was Amgen Inc (NASDAQ:AMGN), with 803 shares, accounting for a total value of $209,290.

Key Position Increases

Richard Pzena (Trades, Portfolio) also increased stakes in a total of 51 stocks, among them:

The most notable increase was CVS Health Corp (NYSE:CVS), with an additional 6,475,271 shares, bringing the total to 19,610,579 shares. This adjustment represents a significant 49.3% increase in share count, a 0.99% impact on the current portfolio, with a total value of $880.32 million.
The second largest increase was Humana Inc (NYSE:HUM), with an additional 1,103,132 shares, bringing the total to 3,609,382. This adjustment represents a significant 44.02% increase in share count, with a total value of $915.74 million.

Summary of Sold Out

Richard Pzena (Trades, Portfolio) completely exited 12 holdings in the fourth quarter of 2024, as detailed below:

Gildan Activewear Inc (NYSE:GIL): Richard Pzena (Trades, Portfolio) sold all 636,743 shares, resulting in a -0.1% impact on the portfolio.
Gap Inc (NYSE:GAP): Richard Pzena (Trades, Portfolio) liquidated all 1,359,676 shares, causing a -0.1% impact on the portfolio.

Key Position Reduces

Richard Pzena (Trades, Portfolio) also reduced positions in 81 stocks. The most significant changes include:

Reduced Equitable Holdings Inc (NYSE:EQH) by 8,240,811 shares, resulting in a -50.15% decrease in shares and a -1.12% impact on the portfolio. The stock traded at an average price of $46.25 during the quarter and has returned 11.61% over the past 3 months and 13.77% year-to-date.
Reduced Edison International (NYSE:EIX) by 3,888,326 shares, resulting in a -41.98% reduction in shares and a -1.09% impact on the portfolio. The stock traded at an average price of $83.53 during the quarter and has returned -38.01% over the past 3 months and -36.76% year-to-date.

Portfolio Overview

At the fourth quarter of 2024, Richard Pzena (Trades, Portfolio)'s portfolio included 152 stocks, with top holdings including 5.52% in Magna International Inc (NYSE:MGA), 4.62% in Cognizant Technology Solutions Corp (NASDAQ:CTSH), 3.74% in Capital One Financial Corp (NYSE:COF), 3.34% in Baxter International Inc (NYSE:BAX), and 3.3% in Wells Fargo & Co (NYSE:WFC).

The holdings are mainly concentrated in 11 industries: Financial Services, Healthcare, Technology, Consumer Cyclical, Consumer Defensive, Industrials, Basic Materials, Energy, Communication Services, Utilities, and Real Estate.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus.

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