American Century Value Fund: Q3 2025 Contributors, Detractors & Trades

American Century Value Fund’s third-quarter 2025 review showed a mix of stock selection wins and sector headwinds as managers repositioned the portfolio for evolving macro and earnings trends. Top contributors for the quarter were largely concentrated in the financials and energy areas, where select banks and integrated oil names benefited from stronger-than-expected earnings and resilient commodity prices. These gains offset weakness in more cyclical consumer-facing names and select technology holdings that lagged amid profit-taking and softer demand signals.

Portfolio managers trimmed positions in some consumer staples and high-valuation tech companies, reallocating capital toward beaten-down value opportunities with improving fundamentals. Notable buys included increased exposure to financial services firms with solid capital positions and attractive dividend yields, while the fund modestly boosted stakes in several energy producers to capture favorable cash-flow dynamics. Sales activity was focused on names that had appreciated beyond intrinsic valuations or that face structural headwinds, according to portfolio commentary.

Sector allocation changes were pragmatic rather than thematic: the team dialed up weight in energy and financials while trimming consumer discretionary and select information technology holdings. This reflected both bottom-up stock selection and a higher conviction in balance-sheet strength and free-cash-flow generation among value-oriented issuers. The fund’s defensive positioning in certain consumer staples remained, but with reduced exposure to names that failed to show improving revenue momentum.

Risk management remained a clear focus. Managers used selective trimming to lock in gains and redeploy capital to attractively valued securities, aiming to balance near-term performance with the fund’s long-term value mandate. The quarter’s activity illustrated a cautious but opportunistic posture—capitalizing on market dislocations while emphasizing companies with durable cash flows and reasonable valuations.

Looking ahead, the fund team said it will continue to emphasize valuation discipline and fundamentals-driven selection, monitoring macro indicators like rate movements and consumer demand for further adjustment. For investors, the quarter highlighted how active value management can navigate mixed markets by rotating into pockets of strength and pruning positions that no longer meet return-risk thresholds.