John P. Goetz is Managing Principal, Co-Chief Investment Officer, Portfolio Manager and member of the executive committee at Pzena Investment Management. Mr. Goetz is a co-portfolio manager for the Global, International, European, Emerging Markets and Japan Focused Value strategies.
He also previously served as the Director of Research and was responsible for building and training the research team. Mr. Goetz became a member of the firm in 1996. Prior to joining Pzena Investment Management, Mr. Goetz held a range of key positions at Amoco Corporation, his last as the Global Business Manager for Amoco’s $1 billion polypropylene business where he had bottom-line responsibility for operations and development worldwide.
In this exclusive 4,457 word interview in the Wall Street Transcript, John Goetz describes how he maximizes returns for his investors.
“…At any given moment, there are probably some good businesses that are trading at very low valuations. Typically, you don’t get a low valuation without some significant controversy or problem that’s developed, but if we could systematically identify and then research those situations, we could form portfolios of good businesses with temporary pain that could be very rewarding in terms of the stock price over the longer term.”
One such example is the China utility stock play:
“In this case, we actually believe that coal prices were going to go back down. In an odd way, actually, we’re saying this investment was partly a short of coal.
What I like about something like that, when you think about portfolio construction — now, I’m actually saying our investment in the utilities, Huadian Power (HKG:1071) and China Resources Power (HKG:0836), is actually going to do better if China slows down again, which is what’s currently happening.
So as demand for electricity slows down, demand for coal slows down, coal prices start going back down, and the utility returns, counterintuitively, start going back up.”
Get more detail on this investment and many others, only by reading the entire 4,457 word interview, exclusively in the Wall Street Transcript.