Richard Pzena

Richard Pzena

Last Update: 2015-02-06

Number of Stocks: 141
Number of New Stocks: 5

Total Value: $18,717 Mil
Q/Q Turnover: 8%

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

Richard Pzena Watch

  • Richard Pzena's New Buys

    Wharton School cum laude and Founder and Co-Chief Investment Officer of Pzena Investment Management LLC Richard Pzena (Trades, Portfolio) believes in investing in good businesses – but only when they go on sale.

    In fact, his firm has five guidelines it follows when looking at which stocks it wants to add to the portfolio:


  • Richard Pzena's 5 New Q4 Stock Buys

    Richard Pzena (Trades, Portfolio) of the $27.7 billion Pzena Investment Management purchased five new stocks in the fourth quarter, according to his portfolio update released Friday.  

  • Pzena Investment Management Fourth Quarter 2014 Commentary

    Richard Pzena (Trades, Portfolio) of Pzena Investment Management discusses oil prices investing in exploration and production companies in his fourth quarter 2014 commentary released Monday. Read the letter here.   

  • Investors Should Enlarge their Portfolios

    In this article, let's take a look at the Procter & Gamble Co (PG), a $239.41 billion market cap company that is a leading consumer products company which markets household and personal care products in more than 180 countries.

    Brand portfolio


  • Exxon Mobil Focusing on Larger Projects

    In this article, let's take a look at Exxon Mobil Corporation (XOM), a $407.07 billion market cap company that is the world's largest publicly owned integrated oil company.

    Past, present and future


  • Richard Pzena Chops Holdings in Application Software Company in Half

    Richard Pzena (Trades, Portfolio) Chops Holdings in Application Software Company in Half

    Last week guru Richard Pzena (Trades, Portfolio) of Pzena Investment Management cut his holdings in ARC Document Solutions (ARC) by -58.87%. The guru sold off a total of 1,812,957 shares of his company’s stock. The guru now holds on to 1,266,691 shares of the company’s stock. Pzena sold these shares at around $10.07 per share, and since then the price per share has since dropped about -2%.  

  • Notes On You Can Be A Stock Market Genius By Joel Greenblatt

    Today I will put up my notes on another book by Joel Greenblatt (Trades, Portfolio). Hope it helps!

    Key points


  • Johnson & Johnson Fairly Valued – I Will Bet on It

    In this article, let´s consider Johnson & Johnson (JNJ), a $297.71 billion market cap that is the world's largest and most diverse healthcare company. It has a trailing P/E ratio that indicates that the stock is relatively undervalued (PE 19.4x vs Industry Median 42.0x).

    Key drivers


  • Richard Pzena's Third Quarter 2014 Commentary

    Using short-term volatility when making long-term investment decisions can lead to dubious results. A strong case for equities emerges when using consistent time horizons for the investor with long-dated liabilities.

    Despite the fact that equity markets have continued their recovery from the depths of the Global Financial Crisis in early 2009, investors can’t stop looking nervously over their shoulders. While some measure of caution is always good, investors – both individuals and institutions – have become so loss-averse that they are increasingly putting themselves in the position of micro-managing volatility and making increasingly more short term tactical changes to their portfolios. The wide acceptance of short–term volatility as a measure of risk and the Sharpe ratio as a way of comparing risk and return has only served to increase the focus on the short-term. Witness the rise in the use of hedge funds or risk parity strategies within the portfolios of many investors. These strategies generally accept lower returns on the basis that the risk adjusted returns (i.e., Sharpe ratios) are actually higher. We have always maintained that short term volatility as a measure of risk in an asset class that is long-term by its very nature (i.e., equities) is inappropriate. In this quarter’s commentary we further examine the question of what makes for long-term investment success and consider the negative consequences of aiming for reduced short-term volatility. We conclude that investors with long-term investment horizons are best served by using investment data that matches the time horizon of the liabilities that the investment assets support.


  • The Top Five Guru-Held Mid-Cap Stocks of Q2

    Using the GuruFocus Aggregated Portfolio Screener you can filter results to see what companies maintain the highest amount of guru ownership. By using this screener, we filtered down to see mid-cap companies which are held by the most gurus. The following five mid-capped companies are held by the largest number of gurus during the past quarter.

    Quest Diagnostics (DGX)


  • Value Investor Richard Pzena Provides His Three Favorite Bank Picks

    Richard Pzena (Trades, Portfolio) thinks that the three best big banks to own are Bank of America, Citigroup and JP Morgan. He thinks for all of these companies the upside far outweighs the downside risks.

    Pzena cites low interest rates as being a depressing impact on deposit gathering institutions earnings. If interest rates rise to a more normal level, spreads are going to increase and profits rise.


  • Richard Pzena's Second Quarter 2014 Commentary

    The last three years have been good to investors in developed market equities. Since the 2011 market bottom in the depths of the European financial crisis, the MSCI World index has advanced 66.8% on a cumulative basis, with some of the strongest results in the U.S., where the S&P 500 index has gained 84.1%. Although company fundamentals (earnings, cash flow, etc.) were supportive of an increase in valuations, some investors are concerned that stock prices may have come too far, too fast, and are worried that a correction may be in the offing. Because the U.S. stock performance has been so strong, investors are fearing downside to stocks and value stocks in particular. Some high-flying growth stocks have already suffered. In this context we have examined the history of value stock performance when markets sell off, asking the question:

    Do value stocks protect in market corrections?


  • The 5 Most-Owned Spin-Offs of Investment Gurus

    Numerous financiers, including Joel Greenblatt (Trades, Portfolio), have posited that investors can beat the market by investing in spin-offs – small portions of larger companies separated to stand as their own, independent company. But is this true? This is a question that GuruFocus writer Vera Yuan pondered in her article, “Can Spin-Offs Beat the Market?” Her research concluded that 52 weeks after being spun off, all spun-off companies since 2009 collectively outperformed the market by 84.28%. For this reason, GuruFocus introduced the “Spin-Off List” screener, which tracks all companies spun off since 2013.

    Investment gurus tracked by GuruFocus also deal heavily in spin-off companies. The most bought or held spin-off companies among their holdings are: Now Inc. (DNOW), AbbVie Inc. (ABBV), Liberty Media Corporation (LMCA), News Corp (NWSA) and Allegion Plc (ALLE).


  • Top Held European Stocks Highlighted by Health Care and Oil and Gas Stocks

    sing the GuruFocus Aggregated Portfolio Screener you can filter results to see what companies were bought by the largest numbers of gurus over a certain period of time. By using this screener, we filtered down to see which companies based in Europe were held by the highest number of gurus.

    The following five companies come from a variety of industries, are European-based and were bought by the largest number of gurus over the past quarter.


  • Richard Pzena Reports Top Five Stocks of the First Quarter

    As of the first quarter Richard Pzena, the founder and co-chief investment officer at Pzena Investment Management, held 146 stocks (20 of which he bought during the quarter) valued at over $17.447 billion.

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


  • Richard Pzena's First Quarter 2014 Commentary

    Emerging market equities have struggled since their peak in April, 2011. The MSCI Emerging Markets index has lost 11% cumulatively over the last three years, underperforming the MSCI World developed market index by a whopping 40%. Investors are therefore asking: Is it time to meaningfully increase exposure to the emerging markets?

    As shocking as it may seem, despite the drop in the broad index, consumer-related stocks actually went UP from the 2011 peak, with health care and consumer staples advancing double-digits, out-performing economically sensitive sectors by as much as 60% (Figure 1). All the pain has been felt in sectors such as materials and energy, which plunged 40% and 33%, respectively. So the investor who thinks this is an opportunity to invest in the developing market consumer at discount prices is in for a rude awakening. The key question is whether the stocks that have been decimated are truly cheap.


  • 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.


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