Pzena Investment Management is an investment manager based in New York City with a strict focus on long-term classic value investing. Our investment philosophy is simple: we seek to buy good businesses at low prices.

We focus exclusively on companies that are underperforming their historically demonstrated earnings power, performing fundamental research on these companies to determine whether the problems are temporary or permanent.

We typically consider companies for inclusion in the portfolio when: (1) the current valuation is low compared to the company’s normalized earnings power; (2) current earnings are below historic norms; (3) problems are viewed as temporary; (4) management has a viable strategy to generate earnings recovery; and (5) there is meaningful downside protection in case the earnings recovery does not materialize. We believe a portfolio exclusively focused on companies with these characteristics should generate meaningful excess returns for long-term investors.