Pzena Investment Management Q3 2020 Commentary

The fund manages value equity portfolios for leading endowments/foundations and pension plans, and for individual investors from around the world.

Over the last 12 months alone, value underperformed growth by a record 44 percentage points.

To us, value is simply arithmetic that entails buying something cheap relative to the present value of its cash flows, which means using normal earnings. Value is not a factor.

In The Intelligent Investor, Ben Graham famously said, “In the short run, the market is a voting machine, but in the long run, it is a weighing machine”.