Nice interview with Richard Pzena in this week’s Barron’s – a small except below
Richard Pzena isn’t afraid of taking risks. Since Its founding in 1996, his Pzena Investment Management, Inc. (NYSE:PZN) has pursued a deep-value, concentrated portfolio strategy that has sometimes led to volatile returns. The John Hancock Classic Value Fund Class A (MUTF:PZFVX), which is managed by the firm, had a great 2013, rising 40.5%, eight percentage points ahead of the Standard & Poor’s 500 index. But the fund was crunched in 2008, dropping 46.6%, nine percentage points worse than the index. Through the middle of last week, the fund was up 7.8% in 2014, two points behind the S&P 500.
The firm managed $26.4 billion for institutions and retail investors at the end of July. Shares of the company (PZN) have had a wild ride after its 2007 initial public offering at $18. The stock dropped below $2 in 2009 and has since rallied to $10. In addition to the Hancock fund, Pzena manages 30% of the $18 billion Vanguard Windsor fund (VWNDX), and this year started three funds, Pzena Mid Cap Focused Value Fund Investor Class (MUTF:PZVMX), Pzena Long/Short Value Fund Investor Class (MUTF:PZVLX), and Pzena Emerging Markets Focused Value Fund Investor Class (MUTF:PZVEX).
Welcome to our latest issue of issue of ValueWalk’s hedge fund update. Below subscribers can find an excerpt in text and the full issue in PDF format. Please send us your feedback! Featuring hedge fund assets near $4 trillion, hedge funds slash their exposure to the big five tech companies, and Rokos Capital's worst-ever loss. Read More
Pzena talked with Barron’s recently at his Manhattan office. He views big banks, such as Citigroup Inc (NYSE:C) and Bank of America Corp (NYSE:BAC), as among the best values in the stock market. He’s also bullish on international oil outfits, including BP plc (ADR) (NYSE:BP) and Royal Dutch Shell plc (ADR) (NYSE:RDS.A).
Barron’s: How would you describe your approach?
See full Richard Pzena Drilling Deep for Value by Barron’s