He said: “I’m wary about the prospects for private equity. Firms are often paying more for companies than we would.”
Pzena, a value specialist, said corporate profit margins have hit record levels. “I can’t believe the run will continue much longer.” He said value stocks are standing at a premium of 2.5 times book value.
“We will continue to be fully invested in equities but there are fewer bargains around than in the past,” he said.
Pzena is unconvinced by the argument that growth investors will push stocks higher, bailing out private equity managers along the way.
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