Pzena Investment Management

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Pzena Investment Management
Traded asNYSE: PZN
IndustryInvestment Management
FoundedJanuary 1996; 25 years ago (1996-01)
FounderRichard Stanton Pzena
Headquarters320 Park Avenue, 8th Floor,
New York, NY
,
United States
Area served
Worldwide
Key people
  • Daniel L. Babkes (Senior Research Analyst)
  • Rakesh Bordia (Principal and Portfolio Manager)
  • Rachel Segal (ESG Research Analyst)
  • Jörg Ahlheid (Director of Business Development & Client Services)
  • William L. Lipsey (Managing Principal and President)
Websitewww.pzena.com

Pzena Investment Management is a global investment management firm. Its expertise is deep value investing.[1] It oversees assets under management for institutions, wealthy individuals and Mutual fund|mutual funds.[2] The company is headquartered in New York City and has offices in London and Melbourne.

Investment philosophy

Pzena Investment Management’s investment philosophy is to “seek to make investments in good businesses at low prices.” Its strategies are geared towards generating excess returns over the long term. Its four main value strategies have outperformed their relative benchmarks by between 3% to 5% since inception. Despite under-performance during the bull market of the late 1990s, Pzena Investment Management outperformed during the challenging market years of 2000-2002.[3]

Pzena Investment Management’s senior investment leaders are an active part of the research review process, including founder Rich Pzena. He believes the issue with value is not measurement but human nature.[4] Pzena Investment Management’s research team is focused on making long-term buys.[5]

Firm history and evolution

Pzena Investment Management was founded in 1995 by Richard Stanton Pzena, who was director of U.S. equity investments and chief research officer, and previously chief investment officer of small-cap equities at Sanford C. Bernstein.[6] Pzena Investment Management is known for managing value equities. Its investment strategies include large cap, emerging markets, European, global, and mid cap.[7]

In 2002, John Hancock Funds acquired the Pzena Focused Value Fund. John Hancock Funds bought the Pzena Focused Value Fund for its “team-managed approach, proven superior track record and disciplined deep-value investment style.”[8] Pzena Investment Management continues to manage the fund, listed as the John Hancock Classic Value Fund. As with Pzena Investment Management’s other strategies, it has a deep value approach and buys stocks that are generally depressed because something has gone wrong in the business.[9]

It filed an initial public offering in October 2007 to trade on the New York Stock Exchange. It was the first investment company to go public that year “since the summer swoon rocked credit markets and impacted global stock markets.”[10] It trades under the ticker symbol PZN.[11] At the time of its IPO, the investment firm had 70 employees.[12]

Pzena Investment Management has held a long-term relationship with Vanguard. Vanguard hired Pzena Investment Management for its Windsor fund in 2012 because of Pzena Investment Management’s commitment to consistency and clarity on value. Investors believe that sticking to a value style in difficult markets requires significant dedication, and since has added research on numerous investments[13] including another relationship to manage Vanguard’s Selected Value Fund in 2014.[14]

Vanguard hired Pzena Investment Management as a manager for its Emerging Markets Select Stock fund in 2018.[15]

On February 26, 2018, Pzena Investment Management signed the UN Principles for Responsible Investment (PRI).

References

  1. "Pzena Investment Management, Inc. Announces August 31, 2019 Assets Under Management". StreetInsider.com. Retrieved 2019-11-28.
  2. Dealbook (June 12, 2007). "Pzena Investment Files for I.P.O." DealBook. Retrieved 2019-11-28.
  3. Simpson, Bill (2007-10-29). "Pzena Investment Management IPO: Great Value, If It Stays On Track". Seeking Alpha. Retrieved 2019-11-28.
  4. "MarketFox Interview With Rich Pzena [i3] podcast". player.fm. Retrieved 2019-11-28.
  5. "An Interview with Richard Pzena" (PDF). Graham and Doddsville - Investment Newsletter - Columbia Business School. December 2006. Retrieved 2019-11-28.
  6. "Richard S. Pzena". John Hancock Investment Management. Retrieved 2019-11-28.
  7. "Pzena Investment Management Inc". www.marketwatch.com. Retrieved 2019-11-28.
  8. November 08, Staff Writer |; PM, 2002 at 07:00. "John Hancock to Acquire Pzena Fund". ThinkAdvisor. Retrieved 2019-11-28.
  9. Bary, Andrew. "Drilling Deep for Value". www.barrons.com. Retrieved 2019-11-28.
  10. Zuckerman, Gregory (2007-10-11). "Pzena Investment Sets IPO". Wall Street Journal. ISSN 0099-9660. Retrieved 2019-11-28.
  11. https://www.bloomberg.com/quote/PZN:US
  12. "PZENA INVESTMENT MANAGEMENT, INC. (PZN)". www.nasdaq.com. Retrieved 2019-11-28.
  13. "Pzena gets big boost from Vanguard". Pensions & Investments. 2012-08-20. Retrieved 2019-11-28.
  14. "Most Tax Efficient Vanguard Funds". Adviser Investments. 2014-04-11. Retrieved 2019-11-28.
  15. "Vanguard drops M&G from $3bn EM and mining mandates". Citywire. Retrieved 2019-11-28.

External Links

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