Pzena Insights

Quarterly Commentary

  • 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)

    Read More

  • The Concentration Conundrum

    The continued outperformance of mega-cap highfliers does not stand up to historical scrutiny, while value stocks are trading at a 30% discount to their long-term average PE. (Second Quarter 2023 Commentary)

    Read More

  • The Current Opportunity In Small Caps Globally

    Small-cap stocks are trading near 20-year low valuations and remain an underfollowed corner of global equities rich with opportunity. (First Quarter 2023 Commentary)

    Read More

  • Equity Investing in an Uncertain Macro Backdrop

    Despite recession, inflation, and geopolitical fears, we believe the value opportunity is compelling, even after its best relative performance in more than two decades. (Fourth Quarter 2022 Commentary)

    Read More

  • Opportunity in Times of Trouble – The Case for European Equities

    European equities are trading near a 20-year low, driven by macro and geopolitical concerns. We are finding significant opportunity in well positioned, financially sound businesses, that should have the wherewithal to navigate a possible recession. (Third Quarter 2022 Commentary)

    Read More

Thought Leadership

  • 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.

    Read More

  • 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.

    Read More

  • Energy Transition

    We believe the businesses we own are well-positioned for the global energy transition, as the world gradually shifts away from carbon-intensive fuels towards cleaner energy sources. (September 2023)

    Read More

  • ESG as a Key Component of Bottom-up Fundamental Analysis

    ESG is a key component of bottom-up fundamental analysis. Engagement and improvement can drive value creation and lead to successful investment outcomes. (Q1 2023)

    Read More

  • Highlighted Holding: Sabre

    Given Sabre’s focus on profitability and underwriting expertise in its niche specialty market, we believe it is among the best-positioned UK motor insurers as industry-wide policy pricing improves. (Q1 2023 Highlighted Holding)

    Read More

  • Assessing Corporate Governance

    We examine the extent to which there is an empirical link between good corporate governance and company performance. (July 2022)

    Read More

  • The Utility of ESG Scores in the Investment Process

    We observe a significantly stronger relationship between investment performance and a company’s potential for ESG improvement, as compared to the company’s ESG score. (April 2021)

    Read More

  • Energy Investments in a Zero-Carbon World

    Examining the controversial energy sector as society seeks to combat climate change, we ask: are energy companies facing obsolescence, or offering an exceptional opportunity? (February 2021)

    Read More

  • 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. (November 2020)

    Read More

  • 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. (June 2020)

    Read More

  • 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. (June 2020)

    Read More

  • 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. (May 2020)

    Read More

Webcasts

  • 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

    View Video

  • 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.  

    View Video

  • Pzena Mid-Year Outlook 2022: Value Opportunities in an Uncertain World

    Much has changed since our 2022 outlook – a war, energy price shocks and broader inflation, Fed rate hikes, and recession concerns, to name a few. With equity markets under pressure, where do value stocks stand? Watch as Portfolio Manager Allison Fisch and Co-Chief Investment Officer John Goetz discuss their mid-year outlook. (July 2022)

    View Video

  • Pzena Outlook 2022: Climbing the Wall of Worry

    Portfolio Managers Allison Fisch and Ben Silver discuss their thoughts and expectations for 2022, including the global outlook for value investing. (January 2022)

    View Video

  • Value and ESG: Better Together

    Hear from our value experts Caroline Cai and Rachel Segal as they dive deep into the commonalities behind Value and ESG. Moderated by Adrian Jackson. (July 2021)

    View Video

Podcasts

  • 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)

    Play Podcast

  • 2023 Mid Year Outlook for Value

    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, and where we are finding value now. (July 2023)

    Play Podcast

  • The Big Opportunity in Small Stocks

    In this episode, Portfolio Managers Evan Fox and Matt Ring sit down with Pzena's Co-Head of North American Distribution, Valerie Mignone Arnold to discuss the attractive valuations of small cap stocks across the globe. (May 2023)

    Play Podcast

  • Banks, Volatility, and Value

    In this episode, Portfolio Manager John Flynn and Senior Research Analyst Eric Hagemann sit down with Pzena's Co-Head of North American Distribution, Valerie Mignone Arnold to discuss the recent volatility and the banking crisis through the lens of value investors. (April 2023)

    Play Podcast

  • ESG Opportunity List

    Adrian Jackson hosts this lively discussion where Portfolio Manager John Flynn and ESG Research Analyst Luke Longinotti discuss Pzena's approach to ESG. Pzena's Opportunity List seeks to systematically identify opportunities in our portfolio where material ESG issues exist and engagement could have a positive impact. (March 2023)

    Play Podcast

  • 2023 Outlook for Value Webinar Podcast

    CEO and Portfolio Manager Caroline Cai and President and Portfolio Manager Allison Fisch discuss the 2023 outlook for value in this special episode of the PzenaPerspectives podcast. (January 2023)

    Play Podcast

  • Succession is a Process, Not an Event

    Founding partners Rich Pzena and Bill Lipsey discuss the process of succession and our next generation of leadership in this special episode of the PzenaPerspectives podcast. (January 2023)

    Play Podcast

  • The Value Opportunity in Europe: As Cheap As It Gets?

    Portfolio Manager Miklos Vasarhelyi and Co-Chief Investment Officer John Goetz discuss the current opportunity in Europe for value investors, including some specific companies they find most compelling. (October 2022)

    Play Podcast

  • Value Opportunities in an Uncertain World: PzenaPerspectives

    Amidst a war, energy price shocks and broader inflation, Fed rate hikes, and recession concerns, equity markets are under pressure. Where do value stocks stand? (July 2022)

    Play Podcast

  • A Look Into a Management Meeting with Lear Corp

    Auto supplier Lear’s profitability has been impacted by cost pressures and the supply chain, but its operating flexibility and product portfolio should help it thrive, as the industry normalizes and electrifies. (June 2022)

    Play Podcast

  • Value Investing: The Recovery of Hope

    Managing Principal and Co-Chief Investment Officer John Goetz touches on uncertainty — the quick, fearful response to geopolitical shocks and macro concerns — and the recovery of hope that typically sets the stage for strong value-stock returns. (May 2022)

    Play Podcast

  • Interview with REV Group Inc. CEO, Rod Rushing

    As value investors, we look for good companies with temporary problems, and found one such opportunity in specialty vehicle manufacturer REV Group. (March 2022)

    Play Podcast

Media

  • In Conversation with Rakesh Bordia, Portfolio Manager of Pzena Emerging Markets Value Fund (Mutual Fund Observer)

    Mutual Fund Observer interviews Portfolio Manager Rakesh Bordia about the Pzena Emerging Markets Value Fund (PZIEX). (September 2023)

    Read More

  • Finding Gems in the Trash Heap (Financial Advisor Magazine)

    Financial Advisor Magazine highlights the exceptional track record of Pzena Emerging Markets Value Fund (PZIEX). (August 2023)

    Read More

  • Pzena Mid Cap Value Fund Listed as Top Mid-Cap Performer

    Morningstar Magazine highlights our acclaimed Pzena Mid Cap Value Fund (PZIMX) as a top mid-cap performer across multiple time periods. (August 2023)

    Read More

  • Pzena Emerging Markets Value Portfolio Managers featured in Morningstar

    Morningstar Magazine’s latest piece highlights our acclaimed Emerging Markets Value trio of portfolio managers Caroline Cai, Allison Fisch, and Rakesh Bordia. While these PMs come from very different backgrounds, they found common ground in deep value investing. (May 2022)

    Read More

  • Top Women-Led/Co-Led Portfolio Management Teams

    Portfolio Managers Caroline Cai and Allison Fisch have been recognized by Investment Metrics as one of the top female-led portfolio management teams in Emerging Market Equities with their remarkable performance on the Pzena Emerging Markets Focused Value strategy. (March 2022)

    Read More

  • Exclusive Interview with John Flynn and Insider

    John Flynn told Insider about the "pain" he likes to invest in, including where he finds value in tech. (November 2021)

    Read More

  • Finding Value with Legendary Value Investor Rich Pzena

    ValueWalk and Rich Pzena speak in depth on Pzena’s approach to value investing, ESG, inflation, and opportunity on the recent ValueWalk’s ValueTalks podcast. (September 2021)

    Read More

  • Value Investing Took a Breath, But the Cycle Shift is Still in its Infancy

    Pzena founder and Co-CIO Rich Pzena outlines why he believes we are at the start of a strong value cycle. (August 2021)

    Read More

  • Institutional Investor: European Manager Partners With Multiple Boutiques, Including Value Shop Pzena

    Institutional Investor announces Mediolanum International Funds' partnership with Pzena. (June 2021)

    Read More

  • Gaining Perspective Podcast Featuring Rich Pzena

    On the Gaining Perspective podcast, our founder and co-CIO Rich Pzena discusses the outlook for value investing with Robert Huebscher, founder and CEO of Advisor Perspectives, one of the leading publications for financial advisors.

    Read More

  • Why Now Is The Time For Value Stocks

    Our founder and co-chief investment officer Rich Pzena shared his insights on the rising tide of Value with Financial Advisor Magazine. (May 2021)

    Read More