When it comes to value investing or buying out-of-favor stocks, patience is a virtue. These days few are more virtuous than Richard Pzena, Chairman of Pzena Investment Management, a $20 billion assets money management company whose New York Stock Exchange listed shares are down more than 38% in the last 12 months.
Pzena, 49, is a contrarian value investor, and, in the third quarter of 2007, he decided that beaten-up banks would provide the best bang for his investors' buck. He bet big on stocks like Citigroup, thinking that the bottom was near and they were ripe for turnarounds. Needless to say, Pzena was early.