Richard Pzena

Richard Pzena

Last Update: 2014-02-07

Number of Stocks: 130
Number of New Stocks: 8

Total Value: $17,135 Mil
Q/Q Turnover: 8%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Richard Pzena Watch

  • Gurus Are Divided Over Royal Dutch Shell, You Should Not Be

    The climate change movement is the greatest long-term threat to the oil & gas industry. Hence, companies responsible for fossil fuel exploration, production and marketing have confronted the trend. However, not all strategies have been the same or meet with the same results. For example, Exxon Mobil (XOM) fiercely countered the movement, while competitors explored other options. Royal Dutch Shell (RDS.A) has taken the alternative road and adopted many projects that highlight the company’s compromise with the environment. Specifically, management announced the signature of an agreement with the UK government to move forward with the Peterhead Carbon Capture and Storage project. The approach seems to have paid increasing dividends in the public’s eyes, while some doubts have been casted over the strategy’s long-term viability. So, is Royal Dutch Shell expected to grow or stumble?


    Business Strategy and Overall Performance

      


  • Pzena's Top Three Positions – Safe Bets?

    Over the past days hedge funds have been filing their form 13-F, which is a quarterly report of equity holdings by filed institutional investment managers with at least $100 million in equity assets under management, as required by the United States Securities and Exchange Commission (SEC). In this article, let´s concentrate in one particular hedge fund and try to see the principal holdings in its portfolio. I will look into Pzena Investment Management LLC (PZN) from Richard S. Pzena, who is founder and co-chief investment officer.


    Recently the fund reported its equity portfolio, as at the end of last year. The total value of the portfolio amounted to $17.1 billion, up from $15.5 billion disclosed at the end of the previous quarter. Consequently, the fund's total return was 10.7% in the last quarter. The filing revealed that at the end of last year, the fund added eight new positions to its equity portfolio, and sold out of eight other companies. The top 10 portfolio holdings as of the end of the quarter represented 31.6%. The largest changes from previous 13-F fillings are in the consumer discretionary sector (2.2%) followed by health care stocks (0.3%).

      


  • Pzena Investment Management - Q4 2013 Commentary



  • Value Investor Richard Pzena Discusses HP and Oracle

    Richard Pzena thinks that at the current 7 times earnings Hewlett Packard (HPQ) represents pretty compelling value.


    It isn't the completely irrational 3.5 times earnings of a year ago, but HP is still attractive.

      


  • Five Companies Cut - Pzena Investment Management Update

    The changes in the third quarter portfolio of Pzena Investment Management LLC, led by Richard Pzena, include high-impact reductions of State Street Corp. (STT), Molson Coors Brewing (TAP), Allstate Corp. (ALL) and Hewlett-Packard Co. (HPQ), and the selling of Hospira Inc. (HSP), among many others. Here are Guru Richard Pzena’s trade details, as of Sept. 30, 2013.

    State Street Corp. (STT): Reduced  


  • Richard Pzena's Q3 Top Five

    As of the second quarter Richard Pzena, the founder and co-chief investment officer at Pzena Investment Management, held 130 stocks (thirteen of which he bought during the quarter) valued at over $15.4 billion.
    The following five stocks are the companies he holds the largest stake in.  


  • Richard Pzena's Top 5 Quarter Three Buys

    Richard Pzena, founder of the $23.4 billion investment management firm Pzena Investment Management, reported buying 13 new stocks in the third quarter. This brought his total holdings number to 130 in a portfolio valued at $15.5 billion, for quarter-over-quarter turnover of 10%.

    Founded in 1996, Pzena Investment Management seeks five specific criteria in a company before investing (per his website):  


  • Richard Pzena Reduces Top Innovator TEL - AET, DLPH, NOC, Others

    The third quarter portfolio of Pzena Investment Management LLC, led by Richard Pzena, shows 130 stocks, 13 of them new, and a total value at $15.47 billion. The quarter-over-quarter turnover is 10%. The portfolio is weighted with financial services at 34.3%, consumer cyclical at 11.8% and energy at 8.4%. Guru Richard Pzena has averaged a return of 18.87% over 12 months.

    Among his many third quarter sells, Pzena reduced his holding in TE Connectivity Ltd. (TEL), recently named a Top 100 Innovator by Thomson Reuters for the third consecutive year.  


  • Rich Pzena Commentary 3rd Quarter 2013



  • Deep-Value Investor Richard Pzena's Top 5 Stocks

    As of the second quarter Richard Pzena, the founder and co-chief investment officer at Pzena Investment Management, held 122 stocks (seven of which he bought during the quarter) valued at over $15 billion.

    The following five stocks are the companies he holds the largest stake in.  


  • Pzena Investment Management - Second Quarter 2013 Commentary



  • Pzena Investment Management Second Quarter 2013 Letter

    Richard Pzena, founder and co-chief investment officer of Pzena Asset Management, has released his commentary for the second quarter of 2013 here.  


  • Richard Pzena Buys 5 New Stocks

    Pzena Investment Management has been dedicated to “strict valuation discipline” since Richard Pzena founded it in 1996. The firm has experienced some particularly good days recently: Market appreciation and inflows combined to grow assets under management from $14.1 billion in April 2012 to $19.9 billion in April 2013.

    Of that, the portfolio of 120 U.S. companies is valued at $14.28 billion. Pzena added five new stocks to it in the first quarter, according to GuruFocus Real Time Picks data, for a 9% quarter-over-quarter turnover.  


  • Guru Richard Pzena's Top Q4 Stock Buys

    Pzena Investment Management is a global investment management firm with $18.6 billion in assets managed, which Richard Pzena founded using classic value investing principles. In its portfolio containing 124 stocks, it chose 7 new ones in the fourth quarter, the largest of which are: Assurant Inc. (AIZ), Aetna Inc. (AET) and Anixter International Inc. (AXE).

    According to its website, these or any of the stocks it buys must meet the following five criteria:  


  • Pzena Investment Management Q4 Commentary

    Investment manager Richard Pzena expounds on his fourth quarter and outlook for 2013 in his fourth quarter commentary available here.  


  • Richard Pzena’s Q3 Portfolio Updates: Top Reductions in AVP, CSC and PPG

    Richard Pzena is the founder and co-chief investment officer of New York-based Pzena Investment Management. Recently, Pzena reported a total of 90 transactions to its third quarter portfolio update, 10 of which were reductions to current shareholdings and 11 of which were sells of all its shares in companies. The majority of the updates were increases in stakes; there were also seven new buys in the update.

    The firm’s investment philosophy is simple: Buy good businesses when they go on sale. Seeking to generate excess returns for long-term investors, Pzena lists five characteristics (on pzena.com) that the firm looks for before investing:  


  • Pzena Investment Management Releases Q3 Letter

    Richard Pzena discusses the market, stocks and bonds in the third quarter commentary for Pzena Investment Management, available here.  


  • Richard Pzena Buys Oracle, Google, Baker Highes, PartnerRe, DeVry

    Richard Pzena founded New York-based Pzena Investment Management in 1996 and now has $13.2 billion in assets under management. In the second quarter, Pzena wrote in his commentary that the combination of problematic macro events was creating a number of significant valuation discounts on companies with long-term sustainable earnings power.

    In the second quarter the firm made 22 new buys, the largest of which are: Oracle Corp. (ORCL), Google Inc. (GOOG), Baker Hughes (BHI), Partnerre Ltd. (PRE) and DeVry (DV).  


  • Richard Pzena of Pzena Investment Management Second-Quarter Commentary

    Stay Focused on the Opportunity

    Over the course of 16+ years of value investing, our firm's focus has always been on buying deeply undervalued securities in order to produce superior long-term investment returns for our clients. We have faced many challenging environments; the dot-com bubble, currency crises, financial crises, and recessions. Each period has presented its own unique set of issues, but the common denominator across these time periods is that in each, powerful consensus views drive wide valuation discrepancies. Today, the environment is dominated by the fear of a potential Eurozone meltdown and a weakening global economy. That has created a bubble in "safe" assets - U.S. government bonds, high dividend-paying stocks, and stable earners.

    Although we are not insensitive to the outcome of macro events, we have learned that the valuation discounts created by these fears and uncertainties can offer significant rewards for the patient investor. Low valuation is the opportunity, but the key to successful value investing is understanding the business. Our focus, therefore, remains on identifying and owning good businesses, where we understand the reasons for undervaluation and where the long-term earnings power of the franchise is sustainable. We also look to protect against permanent impairment of capital by avoiding companies where financial risk (leverage in particular) can trump the equity holder's stake in the business. In light of today's heightened worries, we thought it useful to reinforce our investment process, including the lessons we have learned over the years to protect against permanent impairments. In this context, we review the current opportunities in our portfolios, including a range of global and regional industry leaders with high free cash flow yields and strong balance sheets that have been overlooked due to macro fears.  


  • Richard Pzena First Quarter Letter: Disaster Myopia and Cycles of Value Investing

    Recovery in investor sentiment takes time after traumatic events. We examine the causes of Disaster Myopia and how it creates opportunities during value cycles, with financials today a case in point.

    Cycles of Value Investing – A Follow-Up In last quarter's newsletter we examined the cycles of value investing over four decades. One of our observations, illustrated in Figure 1, is that despite the history of deep value delivering nearly 500 basis points per annum of excess return over the S&P 500, value cycles tend to be long, and five years after a cycle peak, the cumulative returns of a naïve deep value benchmark* usually lag those of the broad market. This quarter we offer some possible explanations as to why value works over an extended period, and offer evidence from value cycles going back to the late 1960's for illustration.  


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