Pzena Investment Management Buys Dip in Skyworks Solutions Amid Market Volatility
The Pzena Focused Value Strategy reported a -4.7 per cent net return for the first quarter of 2026, underperforming the Russell 1000 Value Index, while citing geopolitical tensions and AI uncertainty as key headwinds.
Pzena Investment Management has increased its holdings in Skyworks Solutions (SWKS) during the first quarter of 2026, citing weakness in the stock price as an entry point. The firm’s commentary for the Pzena Focused Value Strategy highlighted that the equity market faced significant challenges during the period, driven by the Iran conflict and subsequent energy price hikes, compounded by ongoing uncertainty surrounding artificial intelligence valuations.
Skyworks Solutions, headquartered in Irvine, California, designs and manufactures analog and mixed-signal semiconductor products. The firm noted that the recent decline in Skyworks shares was largely driven by market fears that elevated memory chip pricing could pressure smartphone volumes. Skyworks is a leading supplier of radio frequency components to smartphone manufacturers, making it sensitive to shifts in consumer device demand and component costs.
The broader market environment proved difficult for value-oriented strategies. Pzena reported that the Pzena Focused Value Strategy returned -4.7 per cent (net) for the quarter, underperforming the Russell 1000 Value Index, which returned 2.1 per cent. Despite the volatility, energy stocks led the value index higher, benefiting from sharp increases in oil prices resulting from heightened geopolitical tensions in the Middle East.
At the time of the report, Skyworks Solutions had a market capitalisation of $11.46 billion. Shares closed at $76.18 on June 22, 2026, reflecting a one-month return of -8.68 per cent and a 12-month gain of 3.76 per cent. The stock’s recent performance occurred against a backdrop of a global supply crunch for memory products, with competitors such as Micron Technology reporting a quadrupling of quarterly revenue due to soaring prices.
Despite adding to its position, Pzena maintained a cautious outlook on the broader technology sector. The firm stated that while it acknowledges the potential of Skyworks Solutions as an investment, it believes certain AI stocks offer greater upside potential and carry less downside risk. This sentiment aligns with defensive measures taken by other funds, such as Grow Funds, which have shorted AI stocks like Palantir due to valuation concerns.
Data from the end of the first quarter indicates a slight contraction in institutional interest in Skyworks. According to the report, 35 hedge fund portfolios held Skyworks Solutions at the end of the quarter, down from 43 in the previous period. The move by Pzena to increase its stake stands in contrast to this broader trend of reduced hedge fund participation.
The firm’s commentary underscored that the current environment presents a strong long-term opportunity for disciplined investors, even as short-term volatility persists. Pzena’s decision to buy into Skyworks on the dip reflects a belief in the company’s fundamental value despite the macroeconomic headwinds and sector-specific pricing pressures affecting the semiconductor industry.
