Dear Superinvestor Bulletin Follower,
Click through to the link below for Pzena Asset Management's Q2 commentary:
Here is an excerpt that hints where the firm is seeing value today:
Three criteria typically set up the opportunity for extended value outperformance:
• Uncertainty, either broad-based or company-specific, which creates
• Wide valuation spreads between companies punished for these uncertainties and those favored by investors, then
• A dissipation of uncertainties which leads to the re-rating of value stocks.
There are many such cases of uncertainty today.
Whether it be major U.S. banks that are just regaining the confidence of investors a decade after the global financial crisis, European industrials whose valuations have been punished by a painfully slow economic recovery, Japanese companies put in the penalty box for a generation of low shareholder returns, or emerging market businesses cheap for their own specific reasons, there is a long list of companies suffering from uncertainty.
Valuation spreads between these companies and the much-loved growth darlings and bond proxies are still near 50-year highs
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Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.