Quarterly Commentary

  • Momentum is With Value

    As the global economy recovers from the COVID recession, deep value companies are trading at a P/E that is less than half of growth companies. We believe deep value companies’ earnings growth should lead the way over the next two years. (Fourth Quarter 2020 Commentary)

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  • Value: If Not Now, When?

    Contrary to current sentiment, value investing has consistently beaten the broader market during and after recessions. Our 3Q2020 commentary dives into the history — as well as the snapback that happened the last time multiples between growth and value were this distorted. (Third Quarter 2020 Commentary)

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  • Questioning Conventional Wisdom on Risk and Return

    Our 2Q2020 commentary addresses the relationship between risk & return, questioning short-term volatility as a proxy for long-term risk and offering an approach that we believe provides a more accurate reflection of a manager’s investment capability. (Second Quarter 2020 Commentary)

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  • Record Uncertainty Creates Extreme Opportunity

    Value has beaten the broad markets over one and five years following spikes in volatility. Even in the five years after the 1929 market crash, value posted 10% gains per annum. (First Quarter 2020 Commentary)

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Thought Leadership

  • Giving Credit: Emerging Markets Banks

    EM banks have come under intense pressure in the wake of COVID and its impact on the global economy. A careful study of previous crises indicates EM banks are actually operating amid a healthier macroeconomic environment and with much stronger balance sheets than in the past. At current valuations, banks in the emerging world present compellingly asymmetric investment opportunities.

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  • Global Banks: Resilience in the Face of Crisis

    Against the volatile backdrop of today’s economic environment, bank stocks stand out. In our view, the banking system today can sustain a once-in-a-century level of loan losses without meaningful dilution to equity owners.

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  • Extreme Discounts in Oil Services

    While uncertainty in the oil market has turned investors against the energy sector, difficult market environments = fuel for value investors. As supply/demand find balance, resilient businesses (strong franchises, robust balance sheets, operational flexibility) should emerge stronger.

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  • Volatility, Wide Spreads, and Value Stock Returns

    History suggests that in times of uncertainty, investing in undervalued companies pays off in the long term. During these volatile times, value investing provides a compelling investment opportunity.

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  • Value Is a Philosophy - Not a Factor

    Our interview with Rich Pzena focuses on why human judgment and a consistent investment approach are required to uncover real value and where factor investing misses the mark.

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  • Why Value Investing Works in Emerging Markets

    Emerging Markets Portfolio Manager Allison Fisch explains how value investing offers amplified return potential in emerging markets in a featured article in Viewpoint, the official journal of Pensions and Lifetime Savings Association.

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  • The Wall Street Transcript Interviews John Goetz

    Focusing on the company-specific microeconomics. Pzena’s Managing Principal, Co-Chief Investment Officer, and Portfolio Manager John Goetz speaks with The Wall Street Transcript about value investing.

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Webcasts

  • US Value CIO Outlook with Rich Pzena - Is it Safe to Go Back Into the Water in 2020?

    After Jaws, everyone was afraid to go back into the water. Now, a decade after the financial crisis ended, many investors are still afraid to go back into the value waters. US CIO Rich Pzena discusses why value is a philosophy and NOT a factor, and what’s in store for value in the US in 2020. (February 2020)

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  • Global Value CIO Outlook with John Goetz – The World According to Value: 2020 Edition

    Global CIO John Goetz discusses the extreme opportunities available to value investors today, and why, in spite of the anti-value environment over the past decade, we closed 2019 at our highest AUM level in our firm’s history. (February 2020)

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  • European Value: The Benefits of Deep Value Exposure in Europe

    Co-CIO and Portfolio Manager John Goetz delves into European value opportunities and provides perspective on the region’s banking industry. (July 2019)

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Podcasts

  • The Beginning of the Great Rotation to Value?

    Co-CIO John Goetz discusses the drivers of a potential rotation back to sensible valuations, then answers questions about the current state of value investing and what the future may hold. (December 2020)

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  • Giving Credit: Emerging Markets Banks

    Listen as Portfolio Manager Rakesh Bordia and Senior Research Analyst Jason Doctor discuss the investment opportunity in emerging markets banks. (November 2020)

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  • Staying the Course, or Why Being a Disciplined Value Investor is so Hard!

    Listen as our CEO/Co-CIO Rich Pzena and President Bill Lipsey discuss Pzena Investment Management's value investing discipline and explain why we're staying the course when others deviate. (November 2020)

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  • Value: If Not Now, When?

    Portfolio Managers Caroline Cai and Ben Silver discuss the drivers and sustainability of growth’s outperformance, the potential catalysts that may already be signaling a shift from growth to value along with a study of past recessions in the U.S. and Japan. (October 2020)

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  • Rare Opportunity in Small Cap Stocks

    The cheapest small cap stocks (based on our valuation) are trading at some of the lowest levels we've seen in almost a decade. Portfolio Manager Evan Fox and Senior Research Analyst Eric Hagemann discuss some of the opportunities we've uncovered. (August 2020)

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  • Questioning Conventional Wisdom on Risk and Return

    How should we measure risk? The Sharpe ratio compares long-term returns with short-term volatility, which seems odd to us. Rich Pzena and Bill Lipsey provide a deep value manager’s perspective on risk and return. (July 2020)

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  • Global Banks: Resilience in the Face of Crisis

    Against the volatile backdrop of today’s economic environment, bank stocks stand out. In our view, the banking system today can sustain a once-in-a-century level of loan losses without meaningful dilution to equity owners. Portfolio Manager John Flynn and Senior Research Analyst Eric Hagemann analyze today's value opportunity in global banks. (June 2020)

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  • The Staying Power of Global Businesses in an Environment of Extreme Uncertainty

    Uncertainty is at exceptional levels. Our co-CIO John Goetz and PM Allison Fisch offer an update on our Global and EM portfolios, discussing how the halt in activity is affecting companies and the research necessary to evaluate if companies can survive a prolonged downturn. (April 2020)

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  • The Next Great Depression or the Next Value Opportunity?

    The next depression? A virus-driven recession? Cyclical recovery? How long? How deep? Our CEO discusses value investing during the COVID-19 crisis. (April 2020)

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  • Investment Management in Times of Crisis

    CEO and Co-CIO Rich Pzena talks with our President Bill Lipsey to explain how Pzena Investment Management is conducting business and managing portfolios during the COVID–19 crisis. (March 2020)

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  • GE: A Classic Value Opportunity

    Co-CIO and Portfolio Manager John Goetz and Senior Research Analyst Daniel Babkes take a deep dive into our research process and recount how Pzena chose to make GE one of the largest positions in our US and Global value portfolios. (December 2019)

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