Core Insights - Hotchkis & Wiley Mid-Cap Value Fund reported strong performance in Q3 2025, outperforming the Russell Midcap Value Index with a gain of 7.74% compared to 6.18% for the index, driven by enthusiasm over AI, a Federal Reserve rate cut, and robust corporate earnings [1] Company Overview - Centene Corporation (NYSE:CNC) is a healthcare enterprise focused on managed Medicaid, serving approximately 28 million at-risk health insurance enrollees [3] - As of December 09, 2025, Centene's stock closed at $38.08 per share, with a market capitalization of $18.717 billion [2] Performance Metrics - Centene's one-month return was 5.19%, but it experienced a significant decline of 33.08% over the past 52 weeks [2] - Following a disappointing quarterly earnings report, Centene's shares fell during the quarter, trading at approximately 4.8 times normal earnings, indicating potential attractiveness as a market leader in a growing Medicaid market [3] Market Outlook - The Medicaid market is projected to grow at a rate of 6% per year from 2020 to 2027, driven by increased spending per member, suggesting a favorable growth environment for Centene [3] - Despite the potential of Centene as an investment, there is a belief that certain AI stocks may offer greater upside potential with less downside risk [4]