Steven Romick

Steven Romick

Last Update: 2014-10-28
Related: First Pacific Advisors
Robert Rodriguez

Number of Stocks: 64
Number of New Stocks: 4

Total Value: $9,799 Mil
Q/Q Turnover: 7%

Countries: USA GBR NOR FRA BEL ESP DEU MYS JPN
Details: Top Buys | Top Sales | Top Holdings  Embed:

Steven Romick Watch

  • Steven Romick Buys One Stock in Q3, Headquartered in South Africa

    Steven Romick (Trades, Portfolio), manager of the FPA Crescent Fund, quieted down his stock purchasing in the third quarter, buying only one new stock after adding 10 new names to the portfolio in the second quarter.


    The FPA Crescent fund contains 64 stock positions in total and is valued at $9.8 billion.

      


  • Steven Romick Comments on Naspers And Tencent

    Naspers (JSE:NPN) is a South African holding company with a global portfolio of media and technology investments. Naspers has a 34% equity stake in Tencent (HKSE:00700), a Chinese internet company most known for its QQ instant messaging platform with over 800 million active users. The market values Naspers’s stake in Tencent at ~$48 billion but the parent company at just ~$45 billion. Going long Naspers and shorting a proportionate number of Tencent shares effectively allows us to create a Naspers “stub” at a negative $3 billion valuation. We feel Naspers is worth substantively more, even after tax-affecting for a disposition of Tencent. Better yet, at today’s prices the market is paying us to own Naspers ex-Tencent.


    The Naspers stub includes the leading South African Pay TV company MultiChoice, which has a more than 90% market share not to mention several Pay TV operations across Sub-Saharan Africa that have long-term subscriber growth potential resulting from increased Pay TV penetration. Naspers owns, as well, a major publisher of magazines and newspapers primarily sold in South Africa. The cash flow of these assets continues to support Naspers’s portfolio of Internet/e-commerce investments, including several companies focused on emerging markets that could prove valuable.

      


  • Steven Romick's FPA Crescent Fund Q3 2014 Commentary

    Dear Shareholders:


    The FPA Crescent Fund declined 0.96% in the third quarter but has risen 4.02% year-to-date. The S&P 500 returned 1.13% and 8.34% in the same periods, respectively. Our average risk exposure was 54.6% in the third quarter and 54.3% year-to-date.

      


  • Steven Romick's FPA Crescent Q3 Commentary

    Introduction Is the market finally correcting the recent excesses of stock valuations, particularly in the small-mid-cap area? The admittedly arbitrary definition of a stock market correction is when an index declines 10% or more from its recent level. Based on this, the Russell 2000 (R2000) recently fell into correction territory while the S&P 500 has declined 9% over the past month (as of 10/14/14). Moreover, the Russell Microcap Index is down more than 17% from its high earlier this year, with microcap technology stocks down nearly 25% since March. Thus, small-cap stock valuations, relative to large-cap valuations, are in the process of reverting back toward historical averages. In some ways, the smaller decline in the S&P 500 has masked the broader correction for a number of industry sectors. Besides those mentioned above, large-cap automotive stocks are down 18% since July, and energy stocks are also getting hit with the S&P Oil & Gas Exploration & Production index down 25% since this past summer. While your portfolio is not immune to this correction, we believe the companies we own have strong balance sheets, providing management teams an ability to take advantage of any good opportunities to buy assets on the cheap – should any opportunities present themselves. We have managed this strategy through a number of corrections and each time, while we take temporary hits to capital, we have been able to take advantage of opportunities that present themselves during these periods of dislocation. Our strategy’s three-decades of history shows that we can deploy capital very rapidly when valuations are depressed and when fear and uncertainty are high. On the other hand, we have exhibited tremendous patience in holding higher than normal levels of liquidity when valuations are rich. The last couple of years tested our patience, but we were fortunate to have discovered stocks that still met our stringent investment criteria and deployed some of your capital into these new investment opportunities. In recent weeks we deployed incremental capital as selling pressure accelerated. If the current volatility continues, we fully expect that we will be more aggressive in deploying your capital as valuations become even more attractive.


    Market Commentary

      


  • Logic Makes Steven Romick Skeptical Sometimes


    “Incompetence is the disease of idiots. Overconfidence is the mistake of experts. Incompetence irritates me. Overconfidence terrifies me.” – Canadian journalist Malcolm Gladwell

      


  • Steven Romick Increases Positions, Russian Oil Companies in Q3

    Manager of FPA Capital’s Crescent Fund Steven Romick (Trades, Portfolio) is skeptical of today’s market, as he explained in his shareholder letter and demonstrated in refusing to buy new stocks in the third quarter.  


  • Steven Romick Comments on Alcoa And Norsk Hydro

    We initiated positions in two aluminum companies last fall, Alcoa (AA) and Norsk Hydro (OSL:NHY), that we saw as commercial opportunities or, as we like to call them, “3 to 1s”, i.e., 3x the perceived upside to its downside. The oversimplified and bigger picture view was that we saw the price of aluminum was at an inflation-adjusted low and the stock prices of these companies were down in kind, as can be seen in the following graphs.


      


  • Steven Romick Comments on Jardine Matheson And Jardine Strategic

    Crescent Co-Portfolio Manager Mark Landecker profiled our investment in the “Jardines” at our FPA Investor Day. These Hong Kong-based holding companies can trace their roots back to 1832 and the founding family remains in control and continues to manage and shepherd the growth of these sister entities.


    About 80% of the value of our estimate of the net asset value (NAV) of the Jardines is comprised of the following listed companies: HK Land, Mandarin Oriental Hotels, Dairy Farm, Jardine Lloyd Thompson and Astra. We discussed the merits of the largest of these businesses at our recent Investor Day.

      


  • Steven Romick's Q2 FPA Crescent Fund Shareholder Letter

    Dear Shareholders:


    Nothing seems to slow this stock market in overdrive. The S&P 500 returned 5.23% in the second quarter and 7.14% year-to-date. The FPA Crescent Fund returned 2.94% and 5.04% for the same periods, albeit with an average net exposure to equities in the low 50% range.

      


  • Steven Romick Returns to Buying Stocks: Top 5 Purchases

    Famously patient and conservative investor Steven Romick (Trades, Portfolio) of the FPA Crescent Fund bought 12 new stocks in the second quarter after staying out of the game in the first. Central bank policies and few companies trading at low multiples, among other factors, nudged him to the sidelines in the first three months of the year.

    In his first-quarter letter, Romick told investors:  


  • Steven Romick's Top Five Stocks

    Steven Romick is the portfolio manager of First Pacific Advisors Crescent Fund. The fund’s investment objective and strategy reports that they “seek to generate equity-like returns over the long-term, take less risk than the market and avoid permanent impairment of capital.”


    Over the second quarter Romick purchased 12 new stocks and sold out of two. The guru’s portfolio currently holds 61 stocks valued at over $9.81 billion. The following five companies represent Romick’s top five stock holdings as of the close of the first quarter.

      


  • Steven Romick's First Quarter 2014 Crescent Fund Letter to Investors

    We hope that investors will find FPA commentaries helpful to understand application of the same investment discipline in various markets, and can refer to particular items that interest them.


    You should consider the Fund's investment objectives, risks, and charges and expenses carefully before you invest. The Prospectus details the Fund's objective and policies, sales charges, and other matters of interest to the prospective investor. Please read this Prospectus carefully before investing. The Prospectus may be obtained by visiting the website at www.fpafunds.com, by email at crm@fpafunds.com, toll-free by calling 1- 800-982-4372 or by contacting the Fund in writing.

      


  • Steven Romick's Top Five Highlight Technology Sector

    Steven Romick is the portfolio manager of First Pacific Advisors Crescent Fund. The fund’s investment objective and strategy reports that they “seek to generate equity-like returns over the long-term, take less risk than the market and avoid permanent impairment of capital.”


    Over the first quarter Romick purchased seven new stocks and sold out of six. The guru’s portfolio currently holds 53 stocks valued at over $8.552 billion. The following five companies represent Romick’s top five stock holdings as of the close of the first quarter.

      


  • Investor Steven Romick's Top 5 Increases of First Quarter

    FPA Crescent Fund’s Steven Romick (Trades, Portfolio) in the first quarter preferred to have cash ready to put to work in case volatility hit the markets, rather than buy new stocks. He believes a period of volatility – and the low-priced opportunities it would bring with it – could occur soon.

    “But, we are confident that there will be more volatility in our future and with it, investment opportunity. The CBOE Volatility Index13 (VIX) reflects a market estimate of future volatility. When compared to the last 24 years, at 12.87, the index is just 14% above its low; 36% below its average; and 71% below its high.14 If I were a betting man – and I am not – I would wager the index won’t end the year where it started.”  


  • Steven Romick's Q4 Commentary for FPA Crescent Fund

    Dear Shareholders:


    Forgive us if we bring you up to date this year, in part, through the lens of the distant past.

      


  • Beacon Pointe's 2013 Spring Investment Forum with Steven Romick of FPA Capital



  • Steven Romick Buys 7 Stocks in Q4

    Steven Romick (Trades, Portfolio), of the FPA Crescent Fund, gradually increased his cash position over the first three quarters of 2013 as the market rose. From the end of 2012 to the end of the third quarter, Romick’s long equity exposure declined to 54.2% from 63.8%, and liquidity increased to 38.4%. He bought no new stocks during the third quarter.

    It appears that in the fourth quarter Romick found more attractive places to expend some of his accrued capital. He started seven new positions during the quarter, for a portfolio containing a total of 51 stocks and valued at $8.24 billion.  


  • Steven Romick’s Top Five Q4 Holdings

    Steven Romick is the portfolio manager of First Pacific Advisors Crescent Fund. The fund’s investment objective and strategy reports that they “seek to generate equity-like returns over the long-term, take less risk than the market and avoid permanent impairment of capital.”


     

      


  • Steven Romick: We have found ourselves with little alternative but to make some sales

    FPA Crescent returned 3.78% in the third quarter, and 14.5% year-to-date compared with the S&P 500's returns of 5.24% and 19.79%, respectively.  


  • Steven Romick's FPA Crescent Fund Q3 Commentary

    We hope that investors will find FPA commentaries helpful to understand application of the same investment discipline in various markets, and can refer to particular items that interest them.

    You should consider the Fund's investment objectives, risks, and charges and expenses carefully before you invest. The Prospectus details the Fund's objective and policies, sales charges, and other matters of interest to the prospective investor. Please read this Prospectus carefully before investing. The Prospectus may be obtained by visiting the website at www.fpafunds.com, by email at crm@fpafunds.com, toll-free by calling 1-800-982-4372 or by contacting the Fund in writing.  


Add Notes, Comments

If you want to ask a question, or report a bug, please create a support ticket.

User Comments

Dr.Oleg V Anokhin
ReplyDr.Oleg V Anokhin - 1 month ago
Dear Colleague I read about Your Team in Internet - Your future with my solutions !

New + fundamental AGRO-Medicine- Parfume- Food + Business Process !

Dear Colleague! Corn - at First in my proposition.!

I am Oleg V Anokhin, Dr. of Chemistry of Natural colloid systems from Ukraine.

I have new fundamenta solution for future perspective industry in sphere of Bast Crops colloid systems -BUT now I see that my solutions SPECIAL for Your industry.

Please open and read. - https://drive.google.com/folderview?id=0B4jWpLllRlVLaWVoX3g1YmJKc00&usp=sharing

Have a nice day, Oleg Anokhin
Keithlevy1234
ReplyKeithlevy1234 - 5 months ago
No its a pair trade he did.
JoeDaWealthManager
ReplyJoeDaWealthManager - 8 months ago
Why short VZ? Is it a race to the bottom on price plans?



Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK