Steven Romick

Steven Romick

Last Update: 10-10-2016
Related: First Pacific Advisors
Robert Rodriguez

Number of Stocks: 50
Number of New Stocks: 2

Total Value: $9,337 Mil
Q/Q Turnover: 4%

Details: Top Buys | Top Sales | Top Holdings  Embed:

Steven Romick Watch

  • Regional US Banks Offer Strong Predictable Value

    Three regional banks, Bank of the Ozarks Inc. (NASDAQ:OZRK), Prosperity Bancshares Inc. (NYSE:PB)  and Signature Bank (NASDAQ:SBNY), have high predictability and trade below their 10-year median price-earnings ratio. With high profitability and strong upside potential, these companies offer strong value potential in the short term.

    Regional US banks have high number of undervalued companies based on P/E (ttm)


  • Steven Romick's FPA Crescent Fund 3rd Quarter Commentary

    Dear Shareholders:


  • Steven Romick's Top 3rd Quarter Buys

    Steven Romick (Trades, Portfolio) is the portfolio manager of FPA Crescent Fund and the following are the guru's top-performing stocks for the third quarter.

    Ally Financial Inc. (NYSE:ALLY)


  • Steven Romick Trims Microsoft Stake

    Guru and contrarian investor Steven Romick (TradesPortfolio) trimmed his stake in Microsoft (NASDAQ:MSFT) during the third quarter, removing 1,405,260 shares from his award-winning FPA Crescent Fund for an average price of $56.45. The trade has a -0.70% impact on Romick’s portfolio. He now owns 6,327,480 shares of Microsoft.

    Microsoft has a market cap of $449 billion, an enterprise value of $387.89 billion, a price-earnigns (P/E) ratio of 27.97 and a price-book (P/B) ratio of 6.24.


  • FPA Boosts Position in Esterline Technologies

    First Pacific Advisors (Trades, Portfolio) increased its position in Esterline Technologies Corp. (NYSE:ESL) on Sept. 16.

    In Esterline, the firm purchased 220 shares for an average price of $74.96 per share. The transaction increased its stake by 0.01% to 3,690,774 shares.


  • Steven Romick Slashes Genting Stake

    Steven Romick slashed 15,312,690 shares of Genting (XKLS:4715) from his portfolio at an average price of 4.43 Malaysian ringgit ($1.10) in the second quarter. The trade had a -0.19% impact on Romick’s portfolio. He now owns 41,441,930 shares in the company.

    Genting is a leisure and hospitality company that offers casinos, hotels and spas, restaurants and bars, as well as shows and events, and movie theaters. The company was incorporated on May 7, 1980, and has locations in Singapore, Malaysia, the Philippines and New York City.


  • Steven Romick Exits Carlsberg

    Steven Romick sold out his remaining 389,330 shares in Carlsberg (OCSE:CARL B) in the second quarter at an average price of 627.11 Danish krone ($94.01) per share.


  • Steven Romick's FPA Crescent Fund Second Quarter 2016 Commentary

    Dear Shareholders:


  • Steven Romick Reduces Stake in Henkel

    Steven Romick trimmed his stake in Henkel (XTER:HEN) by 11.83%, selling 151,340 shares in the second quarter.

    The company is headquartered in Düsseldorf, Germany, and it operates its business worldwide in three segments: Adhesive Technologies, Beauty Care and Laundry & Home Care.


  • Steven Romick Slashes Stake in Occidental Petroleum

    Guru Steven Romick slashed his stake in Occidental Petroleum Corp. (NYSE:OXY) during the second quarter. Romick sold 2,482,160 shares for an average price of $74.73. The trade had a -1.8% impact on his portfolio.

    Occidental Petroleum Corporation is an international oil and gas exploration and production company headquartered in Houston. The company provides its services internationally with operations in the U.S., Middle East and Latin America. Occidental is one of the largest U.S. oil and gas companies, based on equity market capitalization.


  • Steven Romick Made 4 New Buys and Increased 2 Positions in 2nd Quarter

    Steven Romick (Trades, Portfolio), portfolio manager of the FPA Crescent Fund, seeks long-term equity returns while avoiding permanent capital impairment and limiting the fund’s exposure to risk. An absolute value investor, Romick only invests in companies that offer absolute economic risk/reward propositions. The fund’s return since inception is 10.26%, which outperforms the Standard & Poor’s 500 index by about 1.3%. Additionally, Morningstar analysts gave FPA Crescent Fund a gold rating, praising the fund’s ability to sustain its capital gains during economic downturns.

    Currently, Romick’s fund contains 57.6% in common equity and 36.3% in cash. According to Morningstar analysis, the fund manager only invests in stocks trading at deep discounts, i.e., “substantial discounts to [the stocks’] economic growth.” During the second quarter, Romick made four new stock buys and increased his position in two other companies.


  • Steven Romick: Will Brexit Spark a Much-Needed Market Revaluation?

    Markets globally have reacted negatively to the British having voted to leave the European Union (EU) after more than four decades. The night before the vote, UK betting markets reflected that the “remain” camp was heavily favored to win. In a 2015 speech titled, “Don’t be Surprised,” I wrote that


  • Steven Romick Adds to Bank of America Stake

    Steven Romick added 5,850,370 shares to his stake in Bank of America Corporation (NYSE:BAC) in the first quarter.

    Bank of America is one of the world’s largest financial institutions, serving individual consumers, small- and middle-market businesses, institutional investors, large corporations and governments with a full range of banking, investing, asset management and other financial and risk management products and services. Through Bank of America’s banking and various nonbank subsidiaries throughout the U.S. and in international markets, it provides a diversified range of banking and nonbank financial services and products through five business segments: Consumer Banking, Global Wealth & Investment Management, Global Banking, Global Markets and Legacy Assets & Servicing with the remaining operations recorded in All Other.


  • First Pacific Advisors Invests in American Express, AIG, Alcoa

    Robert L. Rodriguez, CFA, is the chief executive officer of First Pacific Advisors (Trades, Portfolio) Capital, which bought shares in many companies in the first quarter:

    The fund raised its stake in CIT Group Inc. (CIT) by 120.20% with an impact of 1.98% on the portfolio.


  • Steven Romick Comments on Citigroup

    Our equity exposure to financials has increased to 20.5%, up from a net negative exposure in 2008 and higher than the S&P 500’s current weighting of 15.6%. We seek the inexpensive and care not a whit about market weightings. Financials, particularly lenders, meet that hurdle. Citigroup, as an example, traded down to ~60% of tangible equity at one point in the first quarter. We believe tangible equity is pretty solid, even after assuming a higher level of charge-offs. Investors will frequently act as if they are still fighting their last war but the balance sheets of U.S. banks and thrifts are far stronger now than they were in 2008 when many financial institutions were wounded and close to dying.

    On the eve of the global financial crisis, Citi (NYSE:C) had just 3% tangible equity propping up its tangible assets whereas today, it has 10.5%, higher by a factor of more than three. Some of Citi’s loans will default and it won’t get full recovery in all cases. When we stress test its balance sheet and assume an unusually bad outcome for its loan book, its capital ratios remain solid. If half of its China, energy and metals & mining loans were to default this year and Citi recovered just 40 cents on the dollar, and if consensus earnings are correct, then Citi would still earn money this year and end 2016 with more than $60 per share of tangible book value and tangible equity to tangible assets of more than 10%. That would mean book value would actually increase despite the write-offs. We, therefore, thought Citi at a 40% discount to its minimum worth was a great risk/reward. We purchased additional shares in the midst of its Q1 downturn along with shares of other lenders that saw similar declines.

    From Steven Romick (Trades, Portfolio)'s Crescent Fund first quarter commentary letter.   

  • Steven Romick's 1st Quarter Crescent Fund Commentary

    Dear Shareholders:


  • Steven Romick Keeps On Buying Cisco, American Express

    Steven Romick (Trades, Portfolio) is the portfolio manager of FPA Crescent Fund. As of Jan. 31, the fund had delivered more than 11% a year on average over the past 10 years. The following are the companies the investor has been buying for at least the last two quarters.

    Esterline Technologies Corp. (ESL)


  • Steven Romick Adds to Stake in Alcoa

    Guru Steven Romick added 6,932,590 shares to his stake in Alcoa Inc. (NYSE:AA) in the first quarter.

    Alcoa was founded nearly 128 years ago on Oct. 1,1888, as the Pittsburgh Reduction Company. The company was based on technology developed by Alcoa's co-founder, Charles Martin Hall.


  • Donald Yacktman Reduces Stake in Oracle

    Donald Yacktman (Trades, Portfolio) founded Yacktman Asset Management in 1992. Prior to this, he served as a senior portfolio manager at Selected Financial Services Inc.

    Yacktman is the co-manager for AMG Yacktman Focused Fund (Trades, Portfolio) and the award winning AMG Yacktman Fund (Trades, Portfolio). He was awarded the 1994 Portfolio Manager of the Year award by Mutual Fund Letter.


  • Steven Romick Doubles Down on American Express

    Contrarian value investor Steven Romick doubled down his holding in American Express (NYSE:AXP), adding 2,410,999 shares to his portfolio on March 31.

    American Express has a market cap of $58.5 billion, a P/E ratio of 12.06, an enterprise value of $86.61 billion and a dividend yield of 1.91.


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