Hotchkis & Wiley Global Value Fund on Humana Inc.
Thesis
Hotchkis & Wiley views Humana as one of the largest Medicare Advantage insurers in the United States and believes its earnings are near a cyclical bottom. The stock rose during the quarter as investors increasingly priced in an eventual return to earnings growth. The fund's continued ownership reflects the view that profitability should recover from depressed levels rather than remain structurally impaired.
“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.”