FMC Corporation Shares Slide as Pzena's Value Strategy Cites Disappointing Performance
NEW YORK – In a quarterly market landscape still commanded by artificial intelligence fervor and the relentless climb of mega-cap technology stocks, value-oriented strategies faced headwinds. Pzena Investment Management's Pzena Focused Value Strategy reported a net return of 2.5% for the fourth quarter of 2025, trailing the 3.8% gain of the Russell 1000® Value Index, according to its recently released investor letter.
The firm acknowledged the challenging environment of narrow market leadership but maintained its conviction, stating it continues to see "appealing valuation differences" that may set the stage for long-term value investors. The commentary singled out specific holdings that dragged on performance, notably agricultural science company FMC Corporation (NYSE: FMC).
FMC, a provider of crop protection solutions, has faced a prolonged downturn. Its shares closed at $15.80 on January 30, 2026, representing a staggering 71.23% decline over the preceding twelve months. The company's market capitalization now stands at approximately $1.97 billion. Pzena's letter noted that while FMC was held by 35 hedge funds at the end of Q3 2025, this was down from 43 the prior quarter, reflecting waning institutional interest.
Analyst & Investor Perspectives:
"This is a classic case of a solid company caught in a sector-specific storm and a market that has zero patience," said Michael Rourke, a veteran agribusiness analyst at Clearwater Capital. "Input cost inflation and channel destocking have hammered near-term results, but the long-term demand drivers for crop protection remain intact. For contrarians, this level of pessimism might be worth a look."
A more critical take came from Lisa Hammond, portfolio manager at the growth-focused Ascendant Tech Fund. "Why are we even talking about this?" she remarked sharply. "The capital is flowing into AI and automation that will make traditional agriculture obsolete. Funds clinging to 'value' in sinking ships like FMC are benchmarking themselves into irrelevance. It's a tragic waste of shareholder capital."
Background & Context: The agricultural chemicals sector has been pressured by high inventory levels among distributors, falling crop prices reducing farmer purchasing power, and a slower-than-expected recovery in key markets like Brazil. This has created a perfect storm for companies like FMC, overshadowing their innovation pipelines and leading to significant earnings misses and guidance reductions.
Looking Ahead: The divergence between market darlings in AI and beleaguered value sectors like materials and agriculture underscores a fragmented equity landscape. Pzena's commentary suggests that for disciplined value investors, such periods of extreme disparity historically present selective opportunities, albeit requiring a high tolerance for volatility and timing risk.
Disclosure: This analysis is based on publicly available documents and commentary. It is for informational purposes only and does not constitute investment advice.