Pzena Focused Value Strategy Exited Its Position in Charter Communications (CHTR) in Q3

Pzena Investment Management recently released its third-quarter 2025 commentary for “Pzena Focused Value Strategy.” A copy of the letter can be downloaded here. Driven by optimism about AI and a September rate cut, US broad-based indexes surged in the third quarter. The technology sector was the strongest performer, with growth outpacing value. The Pzena Focused Value strategy gained but underperformed the Russell 1000 Value Index, returning 1.1% gross and 0.9% net vs. 5.3% for the index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Pzena Focused Value Strategy highlighted stocks such as Charter Communications, Inc. (NASDAQ:CHTR). Charter Communications, Inc. (NASDAQ:CHTR) is a broadband connectivity and cable operator company. The one-month return of Charter Communications, Inc. (NASDAQ:CHTR) was -3.73%, and its shares lost 45.80% of their value over the last 52 weeks. On December 09, 2025, Charter Communications, Inc. (NASDAQ:CHTR) stock closed at $205.13 per share, with a market capitalization of $28.019 billion.

Pzena Focused Value Strategy stated the following regarding Charter Communications, Inc. (NASDAQ:CHTR) in its third quarter 2025 investor letter:

"The telecommunications, basic materials, and industrials sectors detracted from performance this quarter. Broadband provider Charter Communications, Inc. (NASDAQ:CHTR) declined after reporting higher-than-expected subscriber losses during the quarter. After conducting further diligence on Charter, we concluded that the competitive pressure in the industry is likely more severe and persistent than we had expected, and we subsequently exited the position. Staffing provider Robert Half Inc. declined as volume pressure continued to weigh on results."

Charter Communications, Inc. (NASDAQ:CHTR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held Charter Communications, Inc. (NASDAQ:CHTR) at the end of the third quarter, which was 56 in the previous quarter. While we acknowledge the potential of Charter Communications, Inc. (NASDAQ:CHTR) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Charter Communications, Inc. (NASDAQ:CHTR) and shared the list of cheap NASDAQ stocks to buy. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.