Pzena Investment Management Is Betting Big on These Five Stocks

#2 Bank of America Corp (NYSE:BAC)

Shares Owned by Pzena Investment Management (as of September 30): 29.87 million shares

Value of Holding (as of September 30): $465.40 Million

Notwithstanding the over 8% decline its stock had during the third quarter and Pzena Investment Management reducing its stake in it by 1% or 547,306 shares, Bank of America Corp (NYSE:BAC) still climbed up two places quarter-over-quarter to become Pzena Investment Management’s second largest holding at the end of September. The over 15% rally that shares of Bank of America Corp (NYSE:BAC) have experienced after it reported its third quarter results on October 14 has helped it in now trading flat for the year. The company declared EPS of $0.37 on revenue of $20.91 billion for the third quarter, versus analysts’ expectation of EPS of $0.33 20.77 billion. On November 2, analysts at BMO Capital Markets initiated coverage on the stock with an ‘Outperform’ rating. John Paulson‘s Paulson & Co reduced its stake in Bank of America by 15% to 18.66 million shares during the April-June period.

#1 HP Inc (NYSE:HPQ)

Shares Owned by Pzena Investment Management (as of September 30): 19.14 million shares

Value of Holding (as of September 30): $490.27 Million

Finally, Pzena Investment Management had added an additional 6% or over 1.15 million shares of HP Inc (NYSE:HPQ) [before the spin-off] during the third quarter and the combined entity remained its largest equity holding at the end of that period. On October 16, Hewlett Packard completed the split of  businesses into two separate trading entities, namely  HP Inc (NYSE:HPQ) and Hewlett Packard Enterprise Company (HPE). Shares of the combined entity experienced a gradual decline throughout 2015 going into the spin-off and as of October 15 were trading down more than 27% year-to-date. On November 9, analysts at BMO Capital Markets reiterated their ‘Market Perform’ rating on the stock of HP Inc (NYSE:HPQ). Moreover, on the same day they also initiated coverage on the stock of Hewlett Packard Enterprise Company (NYSE:HPE) with a ‘Market Perform’ rating and $16 price target. After Pzena Investment Management, Cliff Asness‘ AQR Capital Management was the largest shareholder of HP Inc at the end of the second quarter among the hedge funds tracked by us; it owned over 12.77 million shares of the company, as of June 30.

Disclosure: None