Pzena Investment Management, which has come under scrutiny for an investment style that led to significant negative performance in its portfolios, has reported a 23% fall in revenues for the second quarter. However, it beat analyst predictions with net inflows of $700m (€449m) and its stock price was on the rise.

In mid-morning trading, the New York funds house's share price soared 18% to $9.55 at 12:30 p.m. EST, following a conference call in which Richard Pzena, the founder and co-chief investment officer at the firm, said financial stocks are undervalued.