"Among our top individual contributors in Q3 were new holding Humana Inc. (NYSE:HUM) and American International Group (AIG). Leading health care benefit plans-provider Humana caters heavily to the senior citizen population, many of whom are enrolled in Medicare Advantage plans through Humana. During the quarter, shares were pressured as several large managed care companies said the senior population is utilizing medical care at a higher-than-expected rate, negatively impacting the medical loss ratio of health plans. Compared to fee-for-service, traditional Medicare plans, Medicare Advantage plans offer relative value and should lead to sustainable growth for Humana over time — so we capitalized on the compelling valuation to initiate a position in the quarter."