Richard Pzena is the Founder and Chief Investment Officer of Pzena Investment Management, an investment firm located in New York City. Pzena attended the University of Pennsylvania where he earned his Bachelor of Science (summa cum laude) as well as his Master of Business Administration.
Pzena’s work history is quite impressive. Below is a timeline of how his career has progressed to date.
- Amoco Corporation – Various different financial and planning roles
- Sanford C. Bernstein & Company – Oil Industry Analyst (1986)
- Chief Investment Officer, Small Cap Equities (1990)
- Director of U.S. Equity Investments & Chief Research Officer (1992)
Following his experience stated above, Pzena formed Pzena Investment Management in 1995. In 2007, Richard was named Chairman, Chief Executive Officer and Co-Chief Investment Officer. The investment firm currently manages approximately $26.4 billion in assets. Pzena’s philosophy in buying stocks is buying into weakness. The firm looks for stocks that have taken a dive because something has gone wrong within the business. The stocks at this time are under performing from an earnings perspective compared to their history. Pzena invests in the ones that he and his firm believe can fix their problems and regain stability. Here’s a look at five characteristics Pzena Investment Management takes a look at prior to investing:
- Low price relative to company’s normal earnings power
- Current earnings are down
- Leadership has a plan in place for earnings recovery
- The business has a history of lucrative long-term returns
- There is tangible downside protection