Rich Pzena's guest appearances

Rich Pzena

[i3] Institutional Investment Podcast

Gaining Perspective

PzenaPerspectives

Jack Bogle

Shirl Penney

Rob Arnott

James Montier

Corey Hoffstein

Tobias Carlisle

Michael Recce

Todd Stottlemyre

Fred Schebesta

Joel Greenblatt

Bill Mitchell

Rupal Bhansali

Jeremy Grantham

Ned Davis

Brian Singer

OwlTail

Pzena Investment Management is well-known among financial institutions but is new to the advisor community.  The firm was started by Rich Pzena, my guest today, in late 1995. It ended the first quarter of 2021 with $49.2 billion in AUM, which is an all-time high, and it has had positive net flows for the past four years. Rich and I will talk about the global deep value discipline his firm is known for, as well its concentrated, high-active-share strategies, and its bottom-up methodology that is focused on company-level research.

Pzena Investment Management is well-known among financial institutions but is new to the advisor community.  The firm was started by Rich Pzena, my guest today, in late 1995. It ended the first quarter of 2021 with $49.2 billion in AUM, which is an all-time high, and it has had positive net flows for the past four years. Rich and I will talk about the global deep value discipline his firm is known for, as well its concentrated, high-active-share strategies, and its bottom-up methodology that is focused on company-level research.

Rich Pzena on the Outlook for Value Investing

Listen to a discussion on value investing by legendary investors and long-time friends Joel Greenblatt (Gotham Funds) and Rich Pzena (Pzena Investment Management), moderated by investment strategist Steve Galbraith. Recording Date: March 4, 2021 Disclosure This recording is for institutional investors, and in the UK for professional investors and eligible counterparties only. Any views and statements expressed in this recording are those of Pzena Investment Management, are based on internal research, and are subject to change. It does not constitute investment advice. Your capital is at risk and past performance is not an indicator of future performance.  These materials are intended solely for informational purposes. The views expressed reflect the current views of Pzena Investment Management (“PIM”) as of the date hereof and are subject to change. PIM is a registered investment adviser registered with the United States Securities and Exchange Commission. Neither the speaker nor PIM undertake to advise you of any changes in the views expressed herein. There is no guarantee that any projection, forecast, or opinion in this material will be realized.  Past performance is not indicative of future results.  All investments involve risk, including risk of total loss. The specific portfolio securities discussed in this presentation are included for illustrative purposes only and were selected based on their ability to help you better understand our investment process. They were selected from securities in one or more of our strategies and were not selected based on performance. They do not represent all of the securities purchased or sold for our client accounts during any particular period, and it should not be assumed that investments in such securities were or will be profitable. PIM is a discretionary investment manager and does not make “recommendations” to buy or sell any securities. There is no assurance that any securities discussed herein remain in our portfolios at the time you receive this presentation or that securities sold have not been repurchased. This recording does not constitute a current or past recommendation, an offer, or solicitation of an offer to purchase any securities or provide investment advisory services and should not be construed as such. Please click on the following link for important information:  https://www2.pzena.com/PodcastDisclosure © Pzena Investment Management, LLC, 2020.  All rights reserved.

Listen to a discussion on value investing by legendary investors and long-time friends Joel Greenblatt (Gotham Funds) and Rich Pzena (Pzena Investment Management), moderated by investment strategist Steve Galbraith. Recording Date: March 4, 2021 Disclosure This recording is for institutional investors, and in the UK for professional investors and eligible counterparties only. Any views and statements expressed in this recording are those of Pzena Investment Management, are based on internal research, and are subject to change. It does not constitute investment advice. Your capital is at risk and past performance is not an indicator of future performance.  These materials are intended solely for informational purposes. The views expressed reflect the current views of Pzena Investment Management (“PIM”) as of the date hereof and are subject to change. PIM is a registered investment adviser registered with the United States Securities and Exchange Commission. Neither the speaker nor PIM undertake to advise you of any changes in the views expressed herein. There is no guarantee that any projection, forecast, or opinion in this material will be realized.  Past performance is not indicative of future results.  All investments involve risk, including risk of total loss. The specific portfolio securities discussed in this presentation are included for illustrative purposes only and were selected based on their ability to help you better understand our investment process. They were selected from securities in one or more of our strategies and were not selected based on performance. They do not represent all of the securities purchased or sold for our client accounts during any particular period, and it should not be assumed that investments in such securities were or will be profitable. PIM is a discretionary investment manager and does not make “recommendations” to buy or sell any securities. There is no assurance that any securities discussed herein remain in our portfolios at the time you receive this presentation or that securities sold have not been repurchased. This recording does not constitute a current or past recommendation, an offer, or solicitation of an offer to purchase any securities or provide investment advisory services and should not be construed as such. Please click on the following link for important information:  <a href="https://www2.pzena.com/PodcastDisclosure" rel="noopener noreferrer nofollow" target="_blank">https://www2.pzena.com/PodcastDisclosure</a> © Pzena Investment Management, LLC, 2020.  All rights reserved.


                Value Investing Masterclass: Joel Greenblatt and Rich Pzena
            

Richard 'Rich' Pzena is the founder and Chief Investment Officer of Pzena Investment Management, a value-style investment firm. Unlike what some investors believe, technological disruption is not destroying value-style investing, but is creating opportunities for them, Rich says. This because history tells us that ultimately it is the incumbent that benefits from innovation, not 'the next guy on the block'.Rich Pzena podcast overview:2:11 My father was a value investor until, 25 years ago, he became convinced electric cars would take over the world3:30 Trying to recreate Benjamin Graham’s work from ‘The Intelligent Investor’4:30 But we didn’t have unlimited resources, so we limited our research to stock starting with the letter ‘A’ or ‘B’5:00 There is never a reason to buy things full price6:30 Is the fact that the value premium is easy to measure today has affected its effect?8:00 The issue with value is not measurement; it is human nature. 11:00 Taking a detour in the oil industry13:00 Crazy valuations in the oil industry in the 1980s.16:30 As a sell-side oil analyst I learned the difference between having the data and guessing the data.19:00 Switching to establishing a small cap portfolio21:00 I saw what happened when you went from a boutique manager to a multi-billion dollar manager.25:00 Did you ever made stuff up as a sell side analyst?28:30 Highly engineered statistical (quant) models can’t possibly work29:50 Value is not a factor; price to book is a factor.32:30 Value is behavioural.36:00 Comparing our process to a simple, low price-to-book model37:00 Leaving Sanford C. Bernstein42:00 Joel Greenblatt told me to exclude the bottom third worst return on equity businesses and I was shocked at the result.45:00 Regression to the mean is just human behaviour: people don’t want to believe that management can fix the problems.46:00 Value is created when you don’t know what is going to happen.48:30 Value cycles happen because everyone adopts the same opinion on the market.52:00 Disruptive technologies have always been around and most of the time it is the incumbents that benefit. It is not always the new guy on the block.55:00 Tesla’s decision to make cars was a dumb idea.57:00 The next opportunity is the market’s obsession with the next financial downturn. 1:00:00 Which lessons did you learn the hard way?

Richard 'Rich' Pzena is the founder and Chief Investment Officer of Pzena Investment Management, a value-style investment firm. Unlike what some investors believe, technological disruption is not destroying value-style investing, but is creating opportunities for them, Rich says. This because history tells us that ultimately it is the incumbent that benefits from innovation, not 'the next guy on the block'. Rich Pzena podcast overview: 2:11 My father was a value investor until, 25 years ago, he became convinced electric cars would take over the world 3:30 Trying to recreate Benjamin Graham’s work from ‘The Intelligent Investor’ 4:30 But we didn’t have unlimited resources, so we limited our research to stock starting with the letter ‘A’ or ‘B’ 5:00 There is never a reason to buy things full price 6:30 Is the fact that the value premium is easy to measure today has affected its effect? 8:00 The issue with value is not measurement; it is human nature. 11:00 Taking a detour in the oil industry 13:00 Crazy valuations in the oil industry in the 1980s. 16:30 As a sell-side oil analyst I learned the difference between having the data and guessing the data. 19:00 Switching to establishing a small cap portfolio 21:00 I saw what happened when you went from a boutique manager to a multi-billion dollar manager. 25:00 Did you ever made stuff up as a sell side analyst? 28:30 Highly engineered statistical (quant) models can’t possibly work 29:50 Value is not a factor; price to book is a factor. 32:30 Value is behavioural. 36:00 Comparing our process to a simple, low price-to-book model 37:00 Leaving Sanford C. Bernstein 42:00 Joel Greenblatt told me to exclude the bottom third worst return on equity businesses and I was shocked at the result. 45:00 Regression to the mean is just human behaviour: people don’t want to believe that management can fix the problems. 46:00 Value is created when you don’t know what is going to happen. 48:30 Value cycles happen because everyone adopts the same opinion on the market. 52:00 Disruptive technologies have always been around and most of the time it is the incumbents that benefit. It is not always the new guy on the block. 55:00 Tesla’s decision to make cars was a dumb idea. 57:00 The next opportunity is the market’s obsession with the next financial downturn. 1:00:00 Which lessons did you learn the hard way?

30: Pzena's Rich Pzena - Value Investing, Tech Disruption and Incumbents