Our Process

How We Invest

Proprietary research and discipline

Our Value Universe

Sorting the cheapest stocks in an investment
universe with a proprietary screening tool
enables us to optimize our research focus

 
 

How We Measure Value

Using normalized earnings instead of price-
to-book ratios can provide a more
comprehensive picture of a company’s long-
term earnings potential

Normalized earnings are what we expect a
company to earn across a business cycle

Stock Selection

Building high active share, concentrated portfolios that are centered around intelligent decisions and research

 
 

From the Ground Up

Engaging regularly with company management to ask questions that get to the bottom of a company’s undervaluation

Environmental, Social, and Governance (ESG)

ESG analysis is an inherent part of our dedication to finding value. At Pzena, ESG integration means understanding how environmental, social, or governance issues might affect long-term normalized earnings. We continue to expand our ESG capabilities, including adding dedicated ESG research analysts to the investment team. We also became a signatory to the Principles for Responsible Investment (PRI) in early 2018 and a SASB Alliance member in 2020, and we have accepted Japan’s Stewardship Code.

Click here for additional information on our ESG Investing Approach

STRATEGIES

Our value philosophy stays the same, our strategies differ by investment universe.

GLOBAL

  • GLOBAL VALUE
    We offer global value portfolios of 60-95 stocks from an investment universe of the 2,000 largest companies worldwide.
  • GLOBAL BEST IDEAS
    We offer global value portfolios of 20-30 stocks from an investment universe of the 5,000 largest companies worldwide.
  • GLOBAL SMALL CAP FOCUSED VALUE
    We offer global value portfolios of 40-80 stocks from an investment universe of the MSCI World Small Cap Index.

INTERNATIONAL (Non-US)

  • INTERNATIONAL VALUE
    We offer non-US value portfolios of 30-80 stocks from an investment universe of the 1,500 largest non-US companies.
  • INTERNATIONAL SMALL CAP VALUE
    We offer non-US value portfolios of 40-70 stocks from an investment universe of the MSCI World ex USA Small Cap Index.

REGIONAL

  • EUROPEAN VALUE
    We offer European value portfolios of 40-50 stocks from an investment universe of the 750 largest European companies.
  • JAPAN VALUE
    We offer Japanese value portfolios of 25-40 stocks from an investment universe of the 750 largest Japanese companies.

EMERGING MARKETS

  • EMERGING MARKETS VALUE
    We offer emerging markets value portfolios of 30-80 stocks from an investment universe of the largest companies in non-developed markets.

US

  • LARGE CAP VALUE
    We offer US value portfolios of 30-80 stocks from an investment universe of the largest US companies.
  • MID CAP VALUE
    We offer US value portfolios of 30-80 stocks from an investment universe of 1,000 US companies (ranked 201-1,200 by market cap).
  • SMALL CAP VALUE
    We offer US value portfolios of 40-50 stocks from an investment universe of 2,000 US companies (ranked 1,001-3,000 by market cap).
  • US BEST IDEAS
    We offer US value portfolios of 15-25 stocks from an investment universe of the 3,000 largest US companies.
  • LONG/SHORT VALUE
    We offer US value portfolios of 50-90 long stocks and 40-80 short stocks from an investment universe of the 1,000 largest US companies.

FUNDS

Client satisfaction is our biggest priority. We cater to our clients’ needs and provide access to our strategies through different vehicles. All our portfolios follow the same process to fulfill our goal of generating long-term alpha.