Barrow, Hanley, Mewhinney & Strauss Exits American International Group Inc, Impacting ...

This article first appeared on GuruFocus.

Insightful Moves in the First Quarter of 2026

Introduction to Barrow, Hanley, Mewhinney & Strauss (Trades, Portfolio)

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Barrow, Hanley, Mewhinney & Strauss (Trades, Portfolio) recently submitted their 13F filing for the first quarter of 2026, offering a glimpse into their strategic investment decisions. The firm, led by Executive Director Mr. Barrow, is based in Dallas and is renowned for its disciplined value investing approach. Mr. Barrow, a graduate of the University of South Carolina, has a notable track record, having managed the Vanguard Windsor II and Selected Value Funds, which averaged a 9.33% annual return over a decade ending in 2010, outperforming the market. The firm's equity portfolios consistently feature below-market price-to-earnings and price-to-book ratios, coupled with above-market dividend yields, regardless of market conditions.

Summary of New Buy

Barrow, Hanley, Mewhinney & Strauss (Trades, Portfolio) added a total of 55 stocks to their portfolio, with the most significant addition being Progressive Corp (NYSE:PGR). They acquired 1,334,140 shares, which now account for 0.87% of the portfolio, valued at $264.48 million. The second largest addition was iShares MSCI World ETF (URTH), with 1,166,433 shares, representing approximately 0.69% of the portfolio and valued at $209.98 million. Uber Technologies Inc (NYSE:UBER) was the third largest addition, with 2,064,212 shares, accounting for 0.49% of the portfolio and valued at $148.48 million.

Key Position Increases

In the first quarter of 2026, Barrow, Hanley, Mewhinney & Strauss (Trades, Portfolio) increased their stakes in 114 stocks. The most notable increase was in GE HealthCare Technologies Inc (NASDAQ:GEHC), with an additional 5,378,190 shares, bringing the total to 11,884,588 shares. This adjustment represents a significant 82.66% increase in share count, impacting the portfolio by 1.25%, with a total value of $845.94 million. The second largest increase was in Freeport-McMoRan Inc (NYSE:FCX), with an additional 6,179,224 shares, bringing the total to 9,829,134 shares, representing a 169.3% increase in share count and valued at $577.76 million.

Summary of Sold Out

Barrow, Hanley, Mewhinney & Strauss (Trades, Portfolio) completely exited 45 holdings in the first quarter of 2026. Among these, the most impactful was the sale of all 7,482,558 shares of American International Group Inc (NYSE:AIG), resulting in a -2.13% impact on the portfolio. Additionally, they liquidated all 2,708,542 shares of Cognizant Technology Solutions Corp (NASDAQ:CTSH), causing a -0.75% impact on the portfolio.

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Key Position Reduces

The firm also reduced positions in 105 stocks. Notably, they reduced their stake in Western Alliance Bancorp (NYSE:WAL) by 4,087,469 shares, resulting in a -63.37% decrease in shares and a -1.15% impact on the portfolio. The stock traded at an average price of $83.34 during the quarter and has returned -18.83% over the past three months and -10.01% year-to-date. Similarly, they reduced their position in SLM Corp (NASDAQ:SLM) by 9,294,895 shares, resulting in a -63.99% reduction in shares and a -0.84% impact on the portfolio. The stock traded at an average price of $23.64 during the quarter and has returned -12.23% over the past three months and -22.03% year-to-date.

Portfolio Overview

As of the first quarter of 2026, Barrow, Hanley, Mewhinney & Strauss (Trades, Portfolio)'s portfolio included 377 stocks. The top holdings were 3.12% in Merck & Co Inc (NYSE:MRK), 2.87% in Chevron Corp (NYSE:CVX), 2.77% in GE HealthCare Technologies Inc (NASDAQ:GEHC), 2.51% in Carnival Corporation Ltd (NYSE:CCL), and 2.46% in Entergy Corp (NYSE:ETR).

The holdings are primarily concentrated across all 11 industries: Technology, Financial Services, Healthcare, Energy, Utilities, Basic Materials, Industrials, Consumer Cyclical, Real Estate, Consumer Defensive, and Communication Services.

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