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Centene highlights in Hotchkis & Wiley Mid-Cap Value Fund after surge
In Hotchkis & Wiley’s Q2 2026 investor letter, the firm pointed to Centene’s adjusted EPS beat and a 48.0% outperformance versus consensus, alongside full-year guidance raised by management.
Hotchkis & Wiley’s Q2 2026 investor letter for its Mid-Cap Value Fund highlighted Centene Corporation (NYSE: CNC) as a leading performance contributor, noting the company outperformed sharply during the quarter. According to the letter, equity markets saw strong gains in the second quarter of 2026, with the Russell Midcap Index rising 13.8% and the Russell Midcap Value Index returning 13.4%, even as investors weighed concerns including inflation, a hawkish Federal Reserve, and higher oil prices tied to the Iran conflict. The letter said the Mid-Cap Value Fund returned 4.74% in the quarter, lagging the Russell Midcap Value Index. In the discussion of Centene, the letter describes the company as a managed care organization focused on the Medicaid market, with approximately 28 million at-risk enrollees, and frames it as a capital-light business that could benefit as the U.S. shifts healthcare toward government-funded, cost-controlled programs. The letter also attributes Centene’s quarter performance to an adjusted EPS beat versus consensus by 48.0%, and management raising full-year guidance, saying it supported investor confidence around Medicaid margin recovery and an ACA membership reset.
On August 3, 2026, Centene closed at $63.76 per share, the letter added, with a market capitalization of $31.49 billion. It also cited a one-month return of -3.57% and a 52-week share gain of 146.27%.