Tag: Pzena Investment Management

AI is no longer a simple growth story in emerging markets. It is creating semiconductor winners, software casualties and fresh opportunities for disciplined value managers.

AI hardware winners have already re-rated. For value investors, the next opportunity may sit in Chinese platform companies still carrying a scepticism discount.

Oil shocks can unsettle clients, but history suggests valuation matters. Cheap stocks have often fallen less and recovered faster than expensive peers.

Physical climate risk is no longer just a sustainability discussion. For advisers, it is becoming a question of asset values, earnings resilience and portfolio risk.

Value stocks are hit harder in market drawdowns but come out of them faster and harder, according to research from Pzena Investment Management.

The mainstream energy transition narrative has evolved in light of recent social, political and economic shifts, Pzena says. as the manager takes a deep dive into the credibility of company transition plans.

Valuations are so high in India that people need to have “completely given up hope” before Pzena wades in and makes an investment. It’s shopping in China while it waits.

Where the market goes from here is a question each investor much face on their own, but for those looking to chase the growth tail and tip into what are a small clutch of highly price equities, Pzena has a sobering history lesson.

It’s been one of the most disappointing regions in the world in terms of performance, but Pzena Investment Management thinks China’s bombed-out equity market presents “a real win opportunity”.

The functionality of value investing hinges on one important and fundamental premise: that humans are fallible and emotional operators that over-react, misjudge and fall victim to overconfidence in their own assessment abilities.

“I wouldn’t employ someone from a growth house and try to turn them into a value investor,” says Rich Pzena. “It doesn’t work, they’re different people.”