Deep value in the AI shadow with Rakesh Bordia from Pzena Investment Management
Rakesh Bordia of Pzena Investment Management sets out the discipline behind deep value investing, and the judgement at its centre, distinguishing a sound business trading cheaply because of a temporary problem from one that is cheap for a permanent reason. He argues that index diversification in emerging markets has become partly illusory, with Taiwan, Korea and parts of China now behaving as a single correlated exposure to global spending on artificial intelligence. On the same reasoning, companies written off as casualties of that technology are frequently mispriced rather than impaired, a point he illustrates through the technology services sector.
