Pzena Insights

Quarterly Commentary

  • The Power of Patience: Unlocking Value Investing's Long-Term Rewards

    Value investing requires patience and a long-term perspective. While they may experience deeper drawdowns, value stocks have recovered faster and outperformed over time. Maintaining discipline during market volatility is key to realizing value's historical edge. (Third Quarter 2024 Commentary)

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  • US Dominance and Global Market Trends: A 2024 Mid-Year Analysis

    Significant disparities in global stock markets in the year's first half were driven by US mega-cap growth stocks. We explore the extreme underperformance of equal-weighted indices relative to cap weighted ones and examine stock price sensitivity to earnings announcements, which reached a 30-year high. (Second Quarter 2024 Commentary)

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  • The Case for China: Investing Beyond the Headlines

    We see a disconnect between valuations and financial performance in China, creating intriguing opportunities for disciplined value investors, despite the macroeconomic headwinds and geopolitical tensions. (First Quarter 2024 Commentary)

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  • Value Investing for a Low Equity Risk Premium World

    In today’s low equity risk premium environment, value stocks’ double-digit earnings yield is consistent with their historic outperformance. (Fourth Quarter 2023 Commentary)

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  • Why We Are Active Value Investors

    Many investors opt for “value-light” strategies that sacrifice key value principles. This essay demonstrates value investing’s superior returns compared to growth and value-light strategies, dispels risk misconceptions, and exposes the flaws of indexing value.  (Third Quarter 2023 Commentary)

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Thought Leadership

  • Significant Proxy Votes (3Q24)

    Three votes from the 2024 proxy season illustrate our approach to active stewardship.

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  • The Case for EM Value

    Emerging markets offer compelling opportunities, with valuation gaps between developed and emerging markets at near-historic levels.

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  • The Small Cap Value Opportunity

    US small caps are trading at their cheapest valuations relative to large caps in nearly twenty-four years, resulting in what we believe is a unique opportunity for investors to boost exposure to financially stable, small cap value stocks, that are projected to grow earnings at a faster rate than their large cap peers.

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  • Energy Transition Update (Q2 2024)

    The mainstream energy transition narrative has evolved in light of recent social, political, and economic shifts. Our approach to researching and analyzing our investments has remained consistent, as we continue to dynamically analyze the credibility of company transition plans.

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  • Brazilian Equities: Unveiling Undervalued Opportunities

    Despite two years of strong performance, the MSCI Brazil Index continues to trade below its pre-COVID level. Asset quality has remained strong, and we view the current valuation as compelling.

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  • The Case for Global Small Cap

    Global small-cap stocks are attractively valued, offering a diverse and undiscovered universe of opportunities. (February 2024)

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  • Japanese Corporate Governance Reform (1Q24)

    In the wake of the Tokyo Stock Exchange governance reforms, we remain focused on how companies are improving their governance structures to create shareholder value. (1Q 2024)

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  • Fourth Quarter 2023 Global Research Review

    We delve into the diverse geographic and sector opportunities we are finding, including new holdings in the global recruitment and human services sector, as well as healthcare. (Q4 2023)

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  • Global Banks — Where We Stand

    We maintain high conviction in our financial holdings despite the macroeconomic challenges facing the sector. (December 2023)

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  • Significant Proxy Votes (3Q23)

    Overly prescriptive shareholder proposals and questionable corporate governance practices were some of the more complex issues we faced in the 2023 proxy season. We illustrate our voting thought process and our ongoing engagement with corporate boards and management teams. (September 2023)

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  • True Costs of ESG: Cobalt/EV Supply Chain Case Study

    This case study explores the hidden social (and ultimately financial) costs related to the mining of cobalt, a critical component of EV batteries. (November 2023)

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Webcasts

  • 2024 Mid-Year Global Outlook for Value Webinar

    CEO/Portfolio Manager Caroline Cai and Founder/Portfolio Manager Rich Pzena discuss the current opportunity for disciplined value investors, hosted by Director of Business Development and Client Services, Kate Phillips. Topics include the importance of having a long-term perspective, the continuing impact of concentrated markets, and the opportunity in Chinese equities.

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  • 2024 Global Outlook for Value Webinar

    Co-CIO and Portfolio Manager John Goetz and Portfolio Manager Dan Babkes discuss the current opportunity for disciplined value investors. Topics include: · Finding value when the equity risk premium is low · The opportunity in China for value investors · The impact of the “Magnificent Seven”

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  • 2023 Mid Year Outlook for Value Webinar

    Co-CIO Rich Pzena and Portfolio Manager Miklos Vasarhelyi discuss the current opportunity for disciplined value investors. Topics include: · The YTD growth outperformance driven by mega-caps, and the associated historical context · Our view of the banking sector in both the US and Europe · Where we are finding value now

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  • 2023 Outlook for Value Webinar

    CEO and Portfolio Manager Caroline Cai and President and Portfolio Manager Allison Fisch discuss the outlook for value in 2023.  

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Podcasts

  • Value Investing During Drawdowns

    In today’s episode, Portfolio Manager John Flynn takes the mic in our latest podcast, digging into market drawdowns and sharing data-driven insights on why value may tend to bounce back faster. Hosted by Adrian Jackson, Director of Business Development and Client Services, this episode explores why patience and value investing go hand in hand.

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  • Why Invest Outside the US - Podcast

    Director of National Accounts Peter Quinn speaks with Portfolio Manager and Co-Chief Investment Officer John Goetz about the current opportunity in non-US equities. (September 2024)

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  • The Power of Patience: Unlocking Value Investing's Long-Term Rewards

    CEO/Portfolio Manager Caroline Cai and Founder/Portfolio Manager Rich Pzena discuss the current opportunity for disciplined value investors, hosted by Director of Business Development and Client Services, Kate Phillips. (July 2024)

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  • Building on Value: A New Opportunity in Credit

    Our Vice Chairman Bill Lipsey sits down with Founder Rich Pzena and our Head of Leveraged Loans/High Yield Credit Mark Heron to discuss the launch of the Pzena Focused Credit Opportunities strategy – including how it came to be, how it aligns with our value philosophy, and how it benefits from the industry expertise of our equity research team. (May 2024)

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  • The Case for China: Investing Beyond the Headlines

    Portfolio Managers John Goetz and Allison Fisch, alongside Director of Business Development Adrian Jackson, explore the current state of the Chinese equity market. (April 2024)

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  • Pzena's Best Ideas 2024

    Want to know Pzena's "best ideas"? Portfolio managers discuss the stocks they are finding most interesting right now on the latest episode of PzenaPerspectives. (February 2024)

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  • 2024 Global Outlook for Value

    Co-CIO and Portfolio Manager John Goetz and Portfolio Manager Dan Babkes discuss the current opportunity for disciplined value investors. Topics include: · Finding value when the equity risk premium is low · The opportunity in China for value investors · The impact of the “Magnificent Seven” (January 2024)

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  • Finding Value in China

    Portfolio Manager Akhil Subramanian and Co-Chief Investment Officer John Goetz discuss the current opportunity in China for value investors, including companies they find most compelling (Haier, China Overseas Land & Investment, Alibaba) on the latest episode of PzenaPerspectives. (December 2023)

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  • The Active Value Advantage

    Portfolio Manager John Flynn and Director of Business Development & Client Services Adrian Jackson discuss value investing, taking a deep dive into the historical return profile of the asset class and addressing common misconceptions around the risks of value stocks. John also exposes the flaws of seeking value exposure through value indices and “value-light” strategies. (October 2023)

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Media

  • New Overall 5-Star Morningstar Rating for Emerging Markets Value

    Pzena Emerging Markets Value Fund (PZIEX/PZVEX) Awarded Morningstar Overall 5-Star Rating (November 2024)

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  • Why value is better at taking market beat-downs (Investor Strategy News)

    Why value is better at taking market beat-downs (Investor Strategy News). (November 2024)

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  • Wells Fargo Could Finally Put Its Scandals Behind It (Barron's)

    A recent Barron's article highlights Wells Fargo’s recovery potential, with Pzena’s Daniel Babkes offering insights into why we believe the stock is undervalued. Read the full analysis in this article from Andrew Bary for more. (October 2024)

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  • How Pzena is ‘picking up gems’ from the China wreckage (Investor Strategy News)

    As India’s valuations rise, Pzena is finding diverse opportunities in China. Learn how we're strategically positioning ourselves in under-appreciated markets to find potential long-term value. (August 2024)

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  • Small & Mid Caps: Garden of Growth (Citywire Due Diligence Report)

    Evan Fox, Portfolio Manager at Pzena, shares compelling research on the potential of small caps, revealing the current valuation gap in the small cap market is one of the widest in decades. We believe now is the time to consider these opportunities for your portfolio. (June 2024)

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  • Pzena receives ’Highly Recommended’ rating from Lonsec Research

    We are delighted to announce that, for the second year in a row, Lonsec has rated both Pzena’s Global Focused Value and Emerging Markets Value Funds in Australia as 'Highly Recommended'. Retaining Lonsec’s highest rating is recognition of our true-to-label, classic value approach, which we’ve consistently delivered over the last 28 years. Lonsec is one of Australia’s top research houses, rating over 1,250 investment products. The Highly Recommended rating indicates that Lonsec has very strong conviction the financial product can generate risk adjusted returns in line with relevant objectives. (June 2024)

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  • The science of finding under-valued global gems: INDepth with Caroline Cai from Pzena Investment Management (The Inside Adviser)

    Pzena Investment Management CEO and a Portfolio Manager Caroline Cai recently sat down with James Dunn of The Inside Advisor. Discussion topics included AI, China, and the energy transition, along with specific stocks (Credicorp, Michelin, Haier Smart Home) - all considered within the framework of our value investing philosophy. (June 2024)

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  • Why Pzena thinks the game is on for China’s tough market (Investor Strategy News)

    “China’s market is being treated as monolithic, when the opportunity set is far broader and more diverse,” notes Allison Fisch, Pzena President and Portfolio Manager, in a recent IS|N article. At Pzena Investment Management, we see these challenging conditions as a chance to conduct deep fundamental research and identify undervalued opportunities. Read more from Allison and John Goetz, Portfolio Manager and Co-CIO, on why we are closely examining China’s equity market. (June 2024)

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  • The succession wisdom of an iconic value investor (Australian Financial Review)

    “The idea that the CEO has your back is a major advantage on talent acquisition and retention.” Our founder and Co-CIO Richard Pzena sat down with The Australian Financial Review’s Jonathan Shapiro to share the wisdom of his years as a value investor, why he never considered other investing styles, and how he thinks about succession and leadership. (May 2024)

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  • 'A lot of babies have been thrown out with the bathwater’ in China market sell-off (CNBC Asia Squawk Box)

    President and Portfolio Manager Allison Fisch was recently interviewed on CNBC's Asia Squawk Box, where she discussed value investing in emerging markets, including China (highlighting Alibaba) and India. (February 2024)

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