Pzena Investment Management’s fourth quarter 2025 commentary for “Pzena Focused Value Strategy” highlighted strong AI momentum and market dominance by mega-cap stocks. The strategy underperformed the Russell 1000® Value Index, delivering a net return of 2.5% vs. 3.8% for the Index, but still sees appealing valuation differences for long-term value investors.

Baxter International Inc. (NYSE:BAX) was a leading performance detractor for Pzena Focused Value Strategy, with a one-month return of -3.31% and shares losing 36.76% over the last 52 weeks. The healthcare company faced challenges due to disappointing third quarter results and a dividend cut, with revenue pressure from delayed normalization of IV fluid volumes.

Despite Baxter International Inc. (NYSE:BAX) not being on the list of 30 Most Popular Stocks Among Hedge Funds, 38 hedge fund portfolios held the stock at the end of the third quarter. While there is potential for Baxter International Inc. (NYSE:BAX) as an investment, certain AI stocks offer greater upside potential and less downside risk, making them more attractive options.

Artisan Mid Cap Value Fund shared its views on Baxter International Inc. (NYSE:BAX) in the previous quarter in another article. For more investor letters from hedge funds and leading investors, visit the hedge fund investor letters Q4 2025 page.

Read more at Yahoo Finance: Here’s What Hit Baxter (BAX) in Q4