Pzena Investment Management's Focused Value Strategy returned negative 4.7% net in the first quarter of 2026, underperforming the Russell 1000 Value Index's 2.1% gain. The portfolio was weighed down by the health care, financials, and technology sectors, with Medicare Advantage insurer Humana Inc. emerging as the largest individual detractor. Humana's shares fell after the Centers for Medicare and Medicaid Services proposed a disappointing preliminary Medicare Advantage rate update for 2027, and management's projection of rapid membership growth in 2026 raised investor concerns about overly rich plan benefit design relative to peers. Pzena views these risks as more timing-related than thesis-changing and added to its Humana position on weakness. Humana closed at $360.72 per share on June 22, 2026, with a market capitalization of $43.31 billion, and was held by 61 hedge funds at quarter-end, up from 53 in the prior quarter.
Humana IncCMS proposed disappointing Medicare Advantage rate update for 2027, pressuring Humana's revenue outlook.