Top Value Stocks of Pzena Investment Management

Oracle Corporation (NYSE:ORCL) is next in Pzena’s portfolio, the position ranking third with a value of $509.07 million and consisting of 11.80 million shares. Oracle, which is one of the biggest software companies in the World, is also a top tech pick of another value investor, Donald Yacktman, who owns a 35.07 million share position. Both investors trimmed their stakes in Oracle Corporation (NYSE:ORCL) during the first quarter, a period in which shares of the software provider slid by 4%. The reduced price may represent the perfect time to buy, as beyond the two value investors are several analysts who believe Oracle Corporation (NYSE:ORCL) is an undervalued stock at this point, with a growing cloud services business on top of its stable software and licensing business. Oracle is currently trading at a forward P/E of just 14.62, which is particularly low for a tech company, and why value investors like Pzena and Yacktman think highly of it.

Lastly we come to American International Group Inc (NYSE:AIG), the fourth-most valuable equity holding of Pzena. The position stands at 9.22 million shares with a value of $505.16 million as of March 31. The insurance company is another long term investment of Pzena’s, residing among the fund’s top holdings for more than three years. While it’s been a successful run for American International Group Inc (NYSE:AIG) throughout that time, with shares gaining 88% over the past three years, its shares struggled in the first quarter, dipping by 2%. Those returns contributed to mutual fund Fairholme’s poor performance during the first quarter, as AIG was the fund’s top pick. Shares have appreciated by more than 5% in May however following first quarter earnings that beat estimates, though they were still down by 3% year-over-year at $1.22 per share. AIG announced a decrease in its dividend to $0.12 during its first quarter earnings report, down from $0.13 during the past five quarters.

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