Hotchkis & Wiley Global Value Fund on Humana Inc.
Thesis
Hotchkis & Wiley owns Humana as a major Medicare Advantage insurer whose earnings appear to be approaching a cyclical bottom. Investors have increasingly begun to price in a recovery and renewed earnings growth. The investment case depends on profitability normalizing from depressed levels rather than requiring unusually strong industry conditions.
“The stock performed well as investors increasingly price in the likelihood that earnings have reached a cycle bottom and will soon start to grow again.”