Renowned value investor Richard Pzena (Trades, Portfolio) has recently reduced his stake in Axis Capital Holdings Ltd (AXS, Financial). This article will delve into the details of the transaction, provide an overview of both the guru and the traded company, and analyze the potential implications of this move for value investors.
Details of the Transaction
On July 31, 2023, Pzena reduced his holdings in Axis Capital by 1,667,756 shares, representing a 35.46% decrease in his position. The shares were traded at a price of $55.12 each. Following the transaction, Pzena's total holdings in Axis Capital stand at 3,036,072 shares, accounting for 0.72% of his portfolio and 3.56% of the company's total shares. The transaction had a -0.39% impact on Pzena's portfolio.
Profile of Richard Pzena (Trades, Portfolio)
Richard Pzena (Trades, Portfolio) is the founder and Co-Chief Investment Officer of Pzena Investment Management, LLC. He started the firm in 1995 after earning a BS summa cum laude from the Wharton School in 1979 and an MBA from the University of Pennsylvania in 1980. Pzena's investment philosophy is based on ranking companies from the cheapest to the most expensive based on their current share price compared to their normal long-term earnings power. He focuses on purchasing shares in good businesses that are selling at a low price, often due to temporary issues that have caused the price to drop. Pzena's portfolio consists of 162 stocks, with a total equity of $23.45 billion. His top holdings include Cognizant Technology Solutions Corp (CTSH, Financial), SS&C Technologies Holdings Inc (SSNC, Financial), Edison International (EIX, Financial), Lear Corp (LEA, Financial), and Westinghouse Air Brake Technologies Corp (WAB, Financial). His portfolio is heavily concentrated in the Financial Services and Technology sectors. 
Overview of Axis Capital Holdings Ltd
Axis Capital Holdings Ltd is a Bermuda-based property and casualty insurance company that provides various products and services to clients and distribution partners. The company, which went public on July 1, 2003, operates subsidiaries and branch networks in Bermuda, the United States, Canada, Europe, and Singapore. As of August 7, 2023, the company has a market capitalization of $4.79 billion and a stock price of $56.22. The company's PE percentage stands at 14.20, indicating that it is currently profitable. According to GuruFocus, the company is fairly valued, with a GF Value of $56.43 and a Price to GF Value ratio of 1.00. The company's GF Score is 71/100, suggesting that it has average future performance potential. 
Analysis of the Transaction
The reduction of Pzena's stake in Axis Capital is likely a strategic move based on his investment philosophy. Given that Pzena focuses on buying shares in good businesses at low prices, it is possible that he decided to reduce his stake because he believes that the company's shares are no longer undervalued. However, it is also possible that he reduced his stake to rebalance his portfolio or to free up capital for other investment opportunities.
Other Gurus' Involvement in Axis Capital Holdings Ltd
Other gurus who hold shares in Axis Capital include Barrow, Hanley, Mewhinney & Strauss, HOTCHKIS & WILEY, and Joel Greenblatt (Trades, Portfolio). However, Pzena Investment Management LLC remains the largest guru shareholder in the company.
Conclusion
In conclusion, Richard Pzena (Trades, Portfolio)'s recent reduction of his stake in Axis Capital Holdings Ltd is a significant move that reflects his value-oriented investment philosophy. While the transaction has reduced the weight of Axis Capital in his portfolio, Pzena remains a major shareholder in the company. This move provides valuable insights for value investors and underscores the importance of continuously monitoring and adjusting one's investment portfolio based on market conditions and individual investment philosophies.
