Pzena Investment Management recently released its first-quarter 2026 commentary for “Pzena Focused Value Strategy.” A copy of the letter can be downloaded here. The equity market faced challenges in the first quarter due to the Iran conflict and the related energy price hike, compounded by continued AI-related uncertainty. Despite this volatility, energy stocks led the value index higher, but the portfolio fell short of the index and returned -4.7% (net) vs. 2.1% for the Russell 1000 Value Index. Despite the uncertainty, the firm believes that the current environment presents a strong long-term opportunity. In addition, you can check the Fund’s top five holdings to see its best picks for 2026.
In its first-quarter 2026 investor letter, Pzena Focused Value Strategy highlighted Cognizant Technology Solutions Corporation (NASDAQ:CTSH). Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is a professional services company that offers consulting and technology, and outsourcing services. On June 22, 2026, Cognizant Technology Solutions Corporation (NASDAQ:CTSH) closed at $41.83 per share. One-month return of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) was -19.78%, and its shares lost 46.23% over the past 52 weeks. Cognizant Technology Solutions Corporation (NASDAQ:CTSH) has a market capitalization of $19.79 billion.
Pzena Focused Value Strategy stated the following regarding Cognizant Technology Solutions Corporation (NASDAQ:CTSH) in its Q1 2026 investor letter:
“The health care, financials, and technology sectors were the largest detractors from performance during the quarter. Leading IT services provider Cognizant Technology Solutions Corporation (NASDAQ:CTSH) was weak, despite reporting robust 4Q earnings with peer leading organic growth, due to fears around AI disruption to the services industry more broadly. We continue to see these fears as overblown and added to our position on weakness.”
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 50 hedge fund portfolios held Cognizant Technology Solutions Corporation (NASDAQ:CTSH) at the end of the first quarter, up from 49 in the previous quarter. While we acknowledge the risk and potential of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Cognizant Technology Solutions Corporation (NASDAQ:CTSH) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Cognizant Technology Solutions Corporation (NASDAQ:CTSH) and shared the list of best upside stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.
