Pzena Perspectives

GE: A Classic Value Opportunity

John Goetz and Daniel Babkes discuss:

  • The fundamental strength of GE's businesses and the problems that led it to become a value stock.

  • How we analyzed these problems to determine that GE was still a strong, worthwhile investment.

  • The decision process to add a new company to the portfolio.

  • How position monitoring allows us to increase our position size to overreactions by the market.

Dan Babkes

Mr. Babkes became a member of the firm in 2016. Prior to joining Pzena Investment Management, Mr. Babkes worked as an analyst at LG Capital Management, an event-driven hedge fund, and as an investment banker in the restructuring group at Evercore Partners. He began his finance career as a trader at Chesapeake Partners, a multi-billion dollar hedge fund. He earned a B.A. cum laude from Amherst College and an M.B.A from the Wharton School of the University of Pennsylvania.

John Goetz

Mr. Goetz is a co-portfolio manager for the Global, International, European, Emerging Markets and Japan Focused Value strategies. He also previously served as the Director of Research and was responsible for building and training the research team. Mr. Goetz became a member of the firm in 1996. Prior to joining Pzena Investment Management, Mr. Goetz held a range of key positions at Amoco Corporation, his last as the Global Business Manager for Amoco's $1 billion polypropylene business where he had bottom-line responsibility for operations and development worldwide. Prior positions included strategic planning, joint venture investments, and project financing in various oil and chemical businesses. Before joining Amoco, Mr. Goetz had been employed by The Northern Trust Company and Bank of America. He earned a B.A. summa cum laude in Mathematics and Economics from Wheaton College and an M.B.A from the Kellogg School at Northwestern University.

Disclosure:

General Electric (GE) is held in several of our strategies as of December 31, 2019.

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