Richard Pzena

Richard Pzena

Last Update: 09-09-2016

Number of Stocks: 144
Number of New Stocks: 1

Total Value: $15,985 Mil
Q/Q Turnover: 4%

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

Richard Pzena Watch

  • Richard Pzena Boosted Stake in Seagate in 2nd Quarter

    Richard Pzena (Trades, Portfolio), in his 10 largest trades of the second quarter, added to a few stakes but reduced more with technology and energy stocks among his leading transactions.


    The founder and co-chief investment officer of Pzena Investment Management made his largest transaction of the quarter in Seagate Technology PLC (NASDAQ:STX), a California-based computer storage company. The guru boosted the stake by more than 58% with the purchase of 5,696,037 shares for an average price of $24.4 per share. The deal had a 0.87% impact on the portfolio.

      


  • Bill Nygren Gains 1, Loses 1 in 2nd Quarter

    Bill Nygren (Trades, Portfolio) of Oakmark Funds acquired LinkedIn Corp. (NYSE:LNKD) and sold out of Franklin Resources Inc. (NYSE:BEN) in the second quarter.


    Nygren is the portfolio manager for the Oakmark Fund, the Oakmark Select Fund and the Oakmark Global Select Fund. Nygren and his partners are value investors. They invest in companies they believe trade at a substantial discount to the true business value. When evaluating potential investments, they focus on a company’s stock price and whether it is at a discount to its value, free cash flow and the investment of excess cash. They also look for a high level of management ownership.

      


  • Hotchkis & Wiley's Best Investments Year to Date

    HOTCHKIS & WILEY are value investors focusing on important investment parameters such as a company's tangible assets, sustainable cash flow and potential for improving business performance. It manages a portfolio composed of 173 stocks with total value of $23.763 billion.


    Marathon Oil Corp. (MRO)

      


  • Hotchkis & Wiley Buys Morgan Stanley, Citigroup, AIG in 1st Quarter

    HOTCHKIS & WILEY was founded in 1980 by John Hotchkis and George Wiley, value investors focusing on important investment parameters such as a company's tangible assets, sustainable cash flow and potential for improving business performance. During the first quarter the firm bought shares in the following stocks:


    The firm increased its stake in Marathon Oil Corp. (MRO) by 44.55% with an impact of 0.8% on the portfolio.

      


  • Stocks Richard Pzena Has Bought for 2 Quarters

    Richard Pzena (Trades, Portfolio) is founder and co-chief investment officer of Pzena Investment Management LLC, with more than $24 billion under management. In both fourth quarter 2015 and first quarter 2016 the guru bought shares in the following stocks:


    Key Energy Services Inc. (KEG)

      


  • Richard Pzena Ups Stakes in High-Conviction Stocks

    Richard Pzena (Trades, Portfolio) is founder and co-chief investment officer of Pzena Investment Management LLC with more than $24 billion under management. Pzena started the firm in 1995.


    Key Energy Services Inc. (KEG)

      


  • Bernard Horn's 5 New Buys All Undervalued by Lynch Earnings Line

    The Polaris Global Fund headed by Bernard Horn (Trades, Portfolio) picked up five new holdings during the first quarter although only one was an international company, according to data reported by GuruFocus' Real Time Picks.


    Polaris’ investment process includes regularly screening a database of companies to narrow down undervalued stocks. Its criteria include those related to sustainable free cash flow, financial strength and liquidity. The process has largely worked well for Polaris – the fund has outperformed the MSCI World Index over each of the three-, five- and 10-year periods. Over the past three years ended the most recent quarter end, Polaris had an average annual return of 9.48% compared with 6.82% for the benchmark.

      


  • Pzena Boosts Stakes in Seagate, Murphy Oil in 1st Quarter

    Richard Pzena (Trades, Portfolio), founder and co-chief investment officer of Pzena Investment Management LLC, bought 10 new stakes in the first quarter, but his largest transactions involved increases of stakes he already had in his portfolio.


    In fact, half of Pzena’s top 10 deals were additions to existing stakes. Four of his top 10 deals were reductions, and only one was a new buy.

      


  • Where Are Super Investors Shopping for Bargains?

    GuruFocus offers a lot of screens and tools I find highly useful and interesting for coming up with short lists of companies to look at.


    Frequently I go over the Aggregate Industry Trend screener. It allows you to quickly see in which industries value investing gurus like Joel Greenblatt(Trades, Portfolio), Richard Pzena (Trades, Portfolio), Andreas Halvorsen (Trades, Portfolio) and more than 150 others are putting their money to work and from where they are running as fast as possible. I also went through this exercise last month, and the differences are interesting as well.

      


  • Richard Pzena's Deep Value Investment Picks


    As a founder and co-chief investment officer at Pzena Investment Management LLC, a deep value investment firm, Richard Pzena (Trades, Portfolio)’s moves and commentary are worth looking out for.

      


  • Is There Value in Exxon Mobil at Current Prices?

    Value investors and beaten-down sectors are drawn to each other, like a moth to a flame.


    It is their contrarian nature. They can't help themselves.

      


  • Pzena Purchases 3.4 Million Shares of Dover in 4th Quarter

    Richard Pzena (Trades, Portfolio), founder and co-CIO of Pzena Investment Management LLC, invested in five new buys in the fourth quarter, but most had modest impacts on his portfolio.


    His most noteworthy transactions were deals in which he sold part or all of stakes in his portfolio, although his purchase of 3,413,250 shares of Dover Corp. (NYSE:DOV), a Downers Grove, Illinois-based manufacturer of specialized industrial products and equipment in six segments, was his most significant transaction.

      


  • Richard Pzena Buys Chevron During 4th Quarter

    Richard Pzena (Trades, Portfolio), founder and co-chief investment officer of Pzena Investment Management LLC, manages a portfolio composed of 150 stocks, five of which were acquired in the fourth quarter. Pzena also sold some stakes in the quarter.


    The guru acquired 826,469 shares in Seagate Technology PLC (STX) with an impact of 0.19% on the portfolio.

      


  • Pzena Trades in Familiar Companies in 4th Quarter

    Richard Pzena (Trades, Portfolio), founder and co-chief investment officer of Pzena Investment Management LLC, tended to make his biggest fourth-quarter trades in existing stakes rather than new ones.


    He did find some new buys, but those transactions tended to be much smaller than the additions to and reductions from his portfolio.

      


  • Which Industries Are Super Investors Dumping and Where Are They Shopping?

    Like most value investors, I’m not really a macro guy.


    I just go through filings alphabetically, chase leads like insider buying and guru buying, go over 52-week low lists, etc., and subsequently judge the fundamentals of each business individually to determine whether I like it as an investment or not. On a rare occasion I’m tempted to take a position in an ETF on the Russian stock market or the Greek stock market but in practice ended up owning a few specific Greek stocks based on their fundamentals.

      


  • Ford, General Motors Among Stocks Trading With Low PS Ratio

    According to GuruFocus' All-in-One Screener, the following are the stocks that are companies with a market cap above $5 billion that are trading with a very low P/S ratio.


    ArcelorMittal SA (MT) is trading at about $3.8 with a P/S ratio of 0.10 and an estimated forward P/E multiple of 5.44. The company has a market cap of $6.29 billion and over the last 10 years, the stock has dropped by 89%. During the last 52 weeks, the price has been as high as $11.95 and as low as $3.25.

      


  • Richard Pzena Quadruples Stake in ARC Document Solutions

    Richard Pzena (Trades, Portfolio) began his investment career working for Amoco Corporation in various financial planning roles. He earned an MBA from the Wharton School of the University of Pennsylvania. Prior to founding Pzena Investment Management in 1995, Pzena worked as the director of U.S Equity investments and was the chief research officer for Sanford C Bernstein & Company.


    In the fourth quarter of 2015, Pzena quadrupled his stake in ARC Document Solutions Inc. (NYSE:ARC).

      


  • 4 Tech Ideas From Gurus as Nasdaq Hits Low Levels

    With the start of the new year, many gurus have appeared on CNBC and Bloomberg interviews recently to discuss the sectors and regions in which they see opportunities.


    One sector that has struggled so far this year is technology, with the Nasdaq hitting its lowest levels since October 2014. Information technology stocks in particular led the declines, with the industry down about 3%.

      


  • Richard Pzena Ups Stake in Exxon, Franklin Resources

    Richard Pzena (Trades, Portfolio) is the founder and co-CIO of Pzena Investment Management LLC, with more than $24 billion under management. His portfolio is composed of 149 stocks, and the following are the most heavily weighted buys during the third quarter.


    He increased his stake in Exxon Mobil Corporation (XOM) by 45.64% with an impact of 0.91% on the portfolio. The current stake is 2.89% of his total assets and 0.15% of the company’s outstanding shares.

      


  • 3 Stocks With Strong Dividend, Guru Buying and Low P/B Ratio

    Value gurus, who seek good companies temporarily mispriced by the market, have gravitated toward certain stocks in the current market environment, characterized by increased volatility and higher valuation.


    The All-In-One Screener helps identify these viable stocks worth further research. Performing a screen of stocks priced within 15% of their historical low P/B ratio that have grown dividends for at least 10 years and have had at minimum four gurus purchase them in the last three months reveals a batch of opportunities. Organized by number of guru holders, the following companies head the list: Exxon Mobil Corp (NYSE:XOM), Wal-Mart Stores Inc. (NYSE:WMT), Qualcomm Inc. (NASDAQ:QCOM).

      


  • Richard Pzena's Undervalued Stocks Trading With Low P/Es

    Richard Pzena is founder and co-chief investment officer of Pzena Investment Management LLC with more than $24 billion under management. Pzena started the firm in 1995. He earned a B.S. summa cum laude and an M.B.A. from the Wharton School of the University of Pennsylvania in 1979 and 1980.


    The following are the stocks of his portfolio that are undervalued and are trading with a low P/E ratio.

      


  • John Keeley Buys Synovus Financial and ABM, Sells Several Stakes

    John Keeley (Trades, Portfolio) is president and portfolio manager/analyst at Keeley Asset Management Corp., a registered investment adviser he established in 1982. Keeley emphasizes the purchase of companies undergoing corporate redevelopment such as spinoffs, companies emerging from bankruptcy, securities trading below actual or perceived book value, savings and loan and insurance conversions and distressed utilities.


    The hedge fund has a portfolio composed of 325 stocks with a total value of $3,530,000,000, and the following are the most weighted trades based on the impact on the portfolio during the third quarter.

      


  • Richard Pzena Buys 2 New Stocks in Q3

    Global investment management firm Pzena Investment Management purchased only two new holdings in the third quarter, after founder Richard Pzena (Trades, Portfolio) said in his recent shareholder letter that individually researched companies would outperform naïve value strategies as environmental headwinds subdued returns for value investors.


    Pzena chose Canadian oil company Cenovous Energy Inc. (NYSE:CVE) and wireless telecommunications company Qualcomm Inc. (NASDAQ:QCOM) to add to the portfolio of 149 positions. In total, the portfolio had a value of $15.7 billion, with Financial Services comprising 38.7% and Technology 16.2% of all holdings as the sectors with greatest allocations.

      


  • Undervalued Stocks With Low P/E Among Meridian Funds' Holdings

    Richard Aster is the founder of Aster Investment Management Company and he manages both Meridian Value Fund and Meridian Growth Fund. According to GuruFocus the hedge funds have a total value of $2,681 million and the following are the top 5 of the 149 stocks of the portfolio that are trading with a wide margin of safety according to the DCF calculator and with a a low P/E ratio.


    Baxter International Inc.

      


  • Richard Pzena Releases Third Quarter Newsletter Commentary

    CEO of Pzena Investment Management, Richard Pzena (Trades, Portfolio), released his third-quarter letter to shareholders this week.

    Pzena’s firm had assets under management of $25.5 billion at the end of September, down slightly from $26.4 billion the same month last year. The global firm is value-oriented and was founded in 1995. At the end of the second quarter, its top positions were: Hewlett-Packard Co. (NYSE:HPQ), Citigroup Inc. (NYSE:C) and American International Group Inc. (NYSE:AIG).  


  • Is Baxalta a Good Spin-Off Opportunity?

    A number of well-known guru investors hold Baxalta (NYSE:BXLT), the biopharmaceutical pure-play spin-off from medtech parent Baxter. These include Tweedy Browne (Trades, Portfolio), Daniel Loeb (Trades, Portfolio) and Richard Pzena (Trades, Portfolio). Is it a good buy for investors at a current price of $33?


    In this stock note, I consider historical performance, upside, risks, valuation and a suggested buy price.

      


  • Guru Stocks at 52-Week Lows

    According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows.


    Baxter International Inc. reached the 52-week low of $33.30

      


  • Activist Hedge Fund Manager Dan Loeb Increases Position in Leading Biotech Company

    Daniel Loeb’s Third Point LLC disclosed Wednesday that he increased his stake in Baxter International Inc. (NYSE:BAX), a medical equipment and supplies company, by purchasing an additional 11.97 million shares at an average price of $32.69 per share.


    After the transaction, the trader held 53.85 million shares. The stock has dropped 15.48% over the past year and traded around $32.85 per share by Wednesday closing, which was near its May price.

      


  • Assurant's 67% Dividend Hike Makes a Fairly Valued Stock

    In this article, let´s take a look at Assurant Inc. (NYSE:AIZ), which has raised its quarterly dividend to $0.5 per share. This way, the stock yields 2.6% if the share price stays at current levels. Further, it authorized the repurchase of up to an additional $750 million of its common stock. The company maintains a solid financial position, and we expect it to use excess capital to repurchase shares and for dividend payments.


    Recent news

      


  • Weekly CEO Buys Highlight: Shutterstock, Endurance Specialty Holdings, Opko, Air Products, KapStone

    According to GuruFocus Insider Data, these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below:


    Shutterstock Inc.: CEO and 10% owner Jonathan Oringer bought 200,000 shares

      


  • Richard Pzena Adds to Stake in Walmart

    Richard Pzena (Trades, Portfolio), founder and co-chief investment officer of Pzena Investment Management LLC, likes to rank companies from least to most expensive and looks for good businesses that are selling at low prices. It isn’t a foolproof system; Pzena himself has acknowledged that, without a clear reason for the low prices or an indication that the issue will be short-lived, such opportunities often are uncommon.


    Nevertheless, Pzena found several opportunities in the second quarter.

      


  • Investor Richard Pzena Ponders Active Vs. Passive Investing in Q2 Commentary

    Investor Richard Pzena (Trades, Portfolio) of Pzena Investment Management released his commentary on the year's second quarter on Monday. The noted manager discussed active vs. passive investing and the importance of discipline.

    See Pzena's quarterly commentary here.  


  • Weekly CEO Buys Highlight: SHLD, ENH, APD, KS, TEP

    According to GuruFocus Insider Data, these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below:


    Sears Holdings Corp.: CEO, 10% owner buys 377,950 shares

      


  • Ken Fisher Continues To Increase Stake In ICICI Bank

    ICICI Bank (NYSE:IBN), which is India’s largest private sector bank, has witnessed strong buying interest from Ken Fisher (Trades, Portfolio). According to Fisher’s latest filing on June 20, 2015, the legendary investor’s holds 10,255,919 shares of ICICI Bank, representing a 27.9% increase in holding as compared to the last filing in March 2015. Investors can track these Guru stock actions in Real Time Alerts by Guru Focus.


    In this article, I will discuss the reasons for my bullish view on ICICI Bank for the long term. I believe that ICICI Bank is one of the best investment options in the banking sector at this point in time. However, the investment horizon needs to be for 3-5 years if investors are looking for stellar returns.

      


  • What to Expect From Today's Bank of America's Earnings?

    Bank of America Corporation (NYSE:BAC) is going to report second quarter earnings today, and I think it is a good moment to discuss if this stock represents an appealing investment. We are going to answer the question, but first, let´s take a look at the hedge fund´s positions.


    The largest shareholder of the bank at the end of the first quarter was Bruce Berkowitz (Trades, Portfolio)´s Fairholme Capital Management, with 76.75 million shares and the stake representing 22.1% of his 5.3 billion portfolio. In second and third place we found Ken Fisher (Trades, Portfolio) and Richard Pzena (Trades, Portfolio), with 42.0 and 30.9 million shares, respectively.

      


  • Five Stocks With Low P/E Gurus Are Buying (Part II)

    With these articles, thanks to the All-In-One screener of GuruFocusI give a selection of stocks that are trading with a very low P/E(ttm) ratio and that are catching the attention of multiple Gurus.


    Discover Financial Services (DFS)

      


  • Weekly CEO Buys Highlight: TPC, NUVA, PHII, GBDC, ARO

    According to GuruFocus Insider Data, these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below:


    Tutor Perini Corp: Chairman & CEO, 10% Owner Ronald N Tutor bought 153,115 shares

      


  • Richard Pzena Keeps Buying Aecom

    Richard Pzena (Trades, Portfolio) is founder and co-chief investment officer of Pzena Investment Management, LLC, with more than $24 billion under management. Pzena's philosophy is based on ranking companies from the cheapest to the most expensive on the basis of current share price to normal long-term earnings power. He purchases shares in good businesses that are selling at a low price. He understands that it is often unrealistic to expect such opportunities to be available absent some sort of problem which causes the price of the shares to drop. The question Pzena and his team try to answer is whether the issue that caused the drop in price is temporary or permanent.


    Last quarter, Mr. Pzena increased his stake in Aecom Technology (NYSE:ACM) by buying 763,639 shares. As of March 31, 2015, he was holding 2,819,465 shares of the company. He has been adding up more shares to his stake in the company for last several quarters. The following chart shows his holding history in the company.

      


  • Richard Pzena's First Quarter Newsletter Commentary

    Richard Pzena (Trades, Portfolio), founder of Pzena Asset Management, has released his first quarter 2015 commentary, in which he discusses opportunities in emerging markets. Read the letter here.

      


  • Weekly CEO Buys Highlight: OPK, CLMS, GFF, TCB, SFNC

    According to GuruFocus Insider Data, these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below:


    Opko Health Inc: CEO and Chairman, 10% owner Phillip Md Et Al Frost bought 46,800 shares

      


  • Richard Pzena Makes 12 New Buys in First Quarter

    Guru Richard Pzena (Trades, Portfolio), founder and co-chief investment officer of Pzena Investment Management, LLC, made both his reputation and his fortune by focusing on good companies selling at low prices. In the first quarter of 2015, the emphasis in Pzena’s 12 new buys was clearly on technology companies, energy stocks and financial services – but not exclusively.


    Pzena acquired 527,165 shares of CVS Health Corp (NYSE:CVS), a Rhode Island-based health care company, for an average price of $101.18 per share. The transaction had a 0.3% impact on Pzena’s portfolio.

      


  • Value Investor Richard Pzena Provides His Perspective On The Oil Sector

    Turns out Richard Pzena likes some oil producers.


    Three that he names in the video below are KLM Royal Dutch, BP (NYSE:BP) and Total (NYSE:TOT) all of which were out of favor before the fracking induced oil collapse.

      


  • Richard Pzena: Hunting For Value

    Richard Pzena (Trades, Portfolio) of Pzena Investment Managment did an interview with CNBC where he discuss the markets and hunting for value.


    Part 1

      


  • Richard Pzena Trims Stake in Possible Acquisition Target Company

    Richard Pzena (Trades, Portfolio), founder of Pzena Investment Management, a global investment management firm with $27.7 billion in assets, reported trimming a position in General Cable Corp (NYSE:BGC).


    Pzena reduced the position size by 13.7% to 2,298,792 shares, according to GuruFocus Real Time Picks. The transaction took place on March 31 when the price closed at $17.23 per share. Year to date the shares have gained almost 21% and trade around $18 per share on Friday afternoon.

      


  • Pzena Reduces Stake in General Cable

    In the second half of 2014, guru Richard Pzena (Trades, Portfolio), the founder and co-chief investment officer of Pzena Investment Management, LLC, added a stake in General Cable Corp (NYSE:BGC), a Kentucky-based manufacturer and distributor of copper, aluminum and optical fiber cables, to his portfolio.


    Pzena started out with a 741,319-share investment in BGC (for an average price of $21.88) in the third quarter, then added nearly 2 million shares in the fourth quarter when the average price was $13.99 per share, bringing his stake to 2,662,468 shares. That made BGC nearly the 50th-largest holding by volume in Pzena’s portfolio when 2014 drew to a close.

      


  • Ken Griffin Upped Stake in Citi, Devon and United Technologies

    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 at Citadel Investment Group.


    Recently, the fund reported its equity portfolio, as at the end of December. The total value of the portfolio amounted to $82.66 million. The filing revealed that at the end of December, the fund added 517 new positions to its equity portfolio, and sold out of 344 other companies. The top ten portfolio holdings as of the end of the quarter represented 7.31%. The largest changes from previous 13-F´s fillings are in the consumer discretionary, industrials and tech sector.

      


  • 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 (NYSE: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 (NYSE: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 (NYSE: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 (NYSE: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. (NYSE:DNOW), AbbVie Inc. (NYSE:ABBV), Liberty Media Corporation (NASDAQ:LMCA), News Corp (NASDAQ:NWSA) and Allegion Plc (NYSE: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 (NYSE:XOM) fiercely countered the movement, while competitors explored other options. Royal Dutch Shell (NYSE: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 (NYSE: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.

      


  • British Petroleum Is Leaving the Macondo Disaster Behind

    On 2010, British Petroleum (NYSE:BP) was responsible for what was considered the largest accidental oil spill in the history of petroleum industry. On April 20, the company’s Deepwater Horizon oil rig, located in the Gulf of Mexico, exploded and sank. Eleven lives were lost, and a sea-floor oil gusher floated for 87 days.

    BP was then obliged to pay a series of liabilities on account of the US Department of Justice. This is why the last years have been difficult for the petrol giant, which was forced to sell almost $40 billion of its assets and materially shorten cash flows as well as oil and gas reserves.  


  • Did You Think About Investing in Energy? Warren Buffet v. Richard Pzena

    Every once in a while industry giants behave similarly, while describing hard to ignore tendencies. Something of the like is happening in the energy industry, with weaker than expected performance on both sides of the Atlantic. ExxonMobil (NYSE:XOM), Chevron (CVX) and Valero (VLO) in North America, and Royal Dutch Shell (NYSE:RDS.A), BP (BP) and Total (TOT) in Europe, continue to miss the right path to steady growth. Similarly, gurus have reacted and began to right size their positions.

    The Declining Industry Giant  


  • 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. (NYSE:STT), Molson Coors Brewing (NYSE:TAP), Allstate Corp. (NYSE:ALL) and Hewlett-Packard Co. (NYSE:HPQ), and the selling of Hospira Inc. (NYSE:HSP), among many others. Here are Guru Richard Pzena’s trade details, as of Sept. 30, 2013.

    State Street Corp. (NYSE: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. (NYSE:TEL), recently named a Top 100 Innovator by Thomson Reuters for the third consecutive year.  


  • Richard Pzena vs Warren Buffett: Oil & Gas Equipment

    When making a long-term investment, profits lay at the second-tier companies. In other words, bidding on the winner always pays smaller dividends. The same reasoning applies to horse track betting: the worse the odds of winning, the bigger the reward for betting. Here, however, we avoid gambling altogether and make an informed decision. In the oil & gas equipment industry, Baker Hughes (NYSE:BHI) and National Oilwell Varco (NYSE:NOV) fight for the third place in the industry, and have plenty of room for growth.

    The comfortable third place  


  • 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.  


  • Dell's Guru Shareholders Farther from Getting Estimated Fair Price as Blackstone Drops LBO Bid

    Guru Dell shareholders’ chances of getting a price higher than the original $13.65 per share pitched by CEO Michael Dell and private equity firm Silver Lake Partners in February dwindled on Friday when a second bidder, Blackstone Group (NYSE:BX), withdrew an offer of $14.25 per share for the company.

    Major shareholders value the company quite differently. “I don’t think a leveraged buyout would get much support at $15 per share,” Richard Pzena, CEO of Pzena Investment Management speculated in Barrons back in January. He estimated Dell shares are worth as high as $25 per share, and said he would consider supporting an LBO at $20 per share, calling anything lower “insiders trying to steal the company.”  


  • Richard Pzena Reduces APOL as Phoenix Rises for Others

    Richard Pzena of Pzena Investment Management LLC reduced his Apollo Group Inc. (NASDAQ:APOL) shares by 23.54% on Feb. 28, 2013. His current APOL shares are at 5,463,455, bought at $16.95, with a change from average of 1%. The current APOL price per share is $17.06. Apollo Group Inc. was incorporated in Arizona in 1981. Perhaps best known for its subsidiary, The University of Phoenix Inc., the education company offers both online and on-campus educational programs at the undergraduate and graduate levels. Apollo Group Inc. has a market cap of $1.92 billion; with a P/E ratio of 4.9 and P/S ratio of 0.5. GuruFocus rated Apollo Group Inc. the business predictability rank of 4.5-star.

    Apollo Group’s revenue growth over 10 years is 19.6%.  


  • 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. (NYSE:AIZ), Aetna Inc. (NYSE:AET) and Anixter International Inc. (NYSE: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.  


  • Weekly Guru Bargains Highlights: CIG, ARO, DLTR, HAE

    According to GuruFocus updates, these stocks have declined the most since Gurus have bought.

    Energy Company of Minas Gerais (NYSE:CIG): Down 38% Since Steven Cohen Bought in the Quarter Ended on 9-30-[b]2012  


  • 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.  


  • Weekly CEO Buys Highlight: SUNS, PACB, GM, NPO, DGX

    According to GuruFocus Insider Data, these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below:

      


  • 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. (NYSE:ORCL), Google Inc. (NASDAQ:GOOG), Baker Hughes (NYSE:BHI), Partnerre Ltd. (NYSE:PRE) and DeVry (NYSE: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.  


  • Richard Pzena's Top Growth Stocks - ACE, TSM, APOL, JAH, LLL

    Richard Pzena founded Pzena Investment Management LLC in 1995 and serves as its co-chief investment officer. This firm manages more than $24 billion. Pzena graduated from the Wharton School, University of Pennsylvania with a B.S. and later with an MBA.

    Pzena's strategy is based on ranking companies from the cheapest to the most expensive based on the current share price to normal earnings power. He tries to purchase stock that is trading at a low price. Of course, he is conscious that these opportunities are not permanently available without carrying problems that cause stock to drop in price. To clearly know whether the stock is a good choice or not, Pzena analyses whether the problem that has caused the price to fall is either a permanent or temporary problem.  


  • Take a Memo - Staples Needed for Your Portfolio

    Staples Inc. (NASDAQ:SPLS)

    Recent Price: $ 14.96  


  • Richard Pzena Keeps Buying HPQ, OMC, ETR, C, RDS.A, AVP and Keeps Selling XOM, NOC, TEL, LLL, UBS

    Richard Pzena keeps Buying HPQ, OMC, ETR, C, RDS.A, AVP and keeps Selling XOM, NOC, TEL, LLL, UBS

    Richard Pzena is the Founder and Co-Chief Investment Officer of Pzena Investment Management, LLC since 1995. Now, it has more than $24 billion under management. He serves as co-portfolio manager the firm’s domestic investment strategy committees and a member of the firm’s executive committee.  


  • Pzena Investment Management Q4 2011 - Is Value Investing Dead?

    PzenaQ42011

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)