LSV Asset Management stays in its lane and maintains an Above Average Parent rating.
The leaders at LSV know what they’re good at and they stick to it. Josef Lakonishok is the last co-founder of the firm who is still active in the business, and the organization’s roots as a quantitative, academically driven research firm are secure. Even as it responds to the times, academic study is at the fore: LSV recently brought on Ralph S.J. Koijen as an academic advisor to consider how it could use artificial intelligence in its investment process. As one of the leading academics in applying AI to financial markets, his perspective should help LSV thoughtfully apply AI techniques where appropriate to its long-practiced quantitative contrarian-value investment approach.
Commitment to one investment philosophy means the firm is prudent about product development, and new fund launches, mergers, and liquidations are rare. The firm launched an active exchange-traded fund in late 2024 in response to client demand, though the ETF has not attracted many assets so far.
Stability extends to the investment team. Although the firm is currently embroiled in a 2024 lawsuit with several former employees over their equity stakes, employee retention is generally a hallmark of the investment team.
The firm is majority employee-owned, with Lakonishok retaining the greatest portion—something that will need to be addressed as the firm thinks about his succession. SEI Investments has kept a 39% stake through the years, though modest changes occur when new partners buy in.
Note: This share class' Parent Pillar rating is analyst-driven, as its Branding Name, LSV (Branding Name ID: BN0000098O), is covered by Morningstar Manager Research.
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