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 of the FPA Crescent Fund’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 third quarter Romick kept pretty quiet, buying no new stocks and selling out of three. The guru’s portfolio currently holds 53 stocks valued at over $6.9 billion. The following five companies represent Romick’s top five stock holdings as of the close of the third quarter.  


  • Steven Romick’s Third Quarter Sells at FPA Crescent Fund

    The third quarter portfolio update of the FPA Crescent Fund, led by Guru Steven Romick of First Pacific Advisors, lists 53 stocks. The fund’s total value is $6.9 billion, with a quarter-over-quarter turnover of 4%. The portfolio is currently weighted with top three sectors: financial services at 19.6%, consumer defensive at 17% and healthcare at 16%. Steven Romick has averaged a return of 16.52% over 12 months; First Pacific Advisors is averaging 18.84%.

    In the third quarter of 2013, Romick reduced 11 positions and sold out three holdings. Here’s a review of his four highest-impact sells in the third quarter of 2013:  


  • Steven Romick Makes Major Increases to 3 Holdings

    With the S&P 500 index this week surpassing a 20% gain for the year, investors focused on price are making notably limited new purchases. One such value investor, Steven Romick, reported today buying no new stocks during the third quarter, though he made increases to existing holdings.

    Romick discussed in his second quarter letter how he viewed the market as artificially inflated due to quantitative easing, and not as a natural result of improving earnings among businesses. In fact, for the first half of the year, GAAP earnings for the S&P 500 declined one half of one percent compared to the comparable period last year. FactSet research also indicated that 80% of corporate EPS guidance for the second quarter was negative. Romick wrote:  


  • Steven Romick Comments on Omnicare

    Ultimately, we pay more attention to the underlying financial performance of the companies in our investment portfolio than we do their stock charts and in one instance, Omnicare (OCR), the largest supplier of pharmaceuticals to patients in nursing homes, delivered in spades. New management came in several years ago and began executing on a business plan that revolved around basic blocking and tackling to improve performance. While the engineer of the turnaround, John Figueroa, has handed off the plan to his successor, the momentum remained intact under the present CEO, John Workman. The company has lowered costs, reduced customer churn, won new accounts and essentially built the best mousetrap in the institutional pharmacy space. The net result is that all of the aforementioned improvements in aggregate have manifested themselves in the form of higher and more consistent earnings. Those achievements and the belief that the company's future continues to look bright are reflected in a stock price that has more than doubled from our original cost.

    From Steven Romick's FPA Crescent Fund second quarter commentary.  


  • FPA Crescent Fund Buys CareFusion, Oracle, Health Net, Sells Omnicare, Travelers, Ensco

    FPA Crescent Fund’s Steven Romick reported the fund’s second quarter portfolio. He buys CareFusion Corp, Oracle Corporation, Health Net Inc, Occidental Petroleum Corporation, ARRIS Group Inc, , sells Omnicare Inc, Travelers Companies, Inc., Ensco PLC, PetSmart Inc., Xerox Corporation, CIT Group Inc, Bank of New York Mellon Corp, Johnson & Johnson, , Lowe's Companies Inc., American Greetings Corporation during the 3-months ended 06/30/2013, according to the most recent filings of his investment company, FPA Crescent Fund.

    Steven Romick is a deep value investor. His portfolio usually has some short positions, too. Over the past 10 years, he has averaged 9% a year, as the general market up by 7.3% a year. To learn more about Steven Romick, read GuruFocus Interview with him.   


  • Steven Romick’s FPA Crescent Sells Three

    In the recently updated portfolio of Steven Romick, FPA Crescent Fund (FPACX) lists 57 stocks, four of them new, with a total value of $6.8 billion and a quarter-over-quarter turnover of 2%. Here’s the latest report on FPA Crescent Fund’s sell outs as of the second quarter 2013. Read more about Steven Romick’s second quarter increases and two new stocks here.

    Sold Out: Travelers Companies Inc. (TRV) – Insurance – Property & Casualty  


  • Steven Romick's Second Quarter Increases

    Steven Romick of the FPA Crescent Fund increased his holdings in four companies in the second quarter. Romick’s Fund is valued at $6.801 billion and is made up of 57 stocks. Romick also purchased four new stocks during the most recent quarter.

    ARRIS Group (ARRS)  


  • Steven Romick Buys 2 New Stocks

    Steven Romick manages $11.3 billion in assets in the value-oriented FPA Crescent Fund (FPACX). He added two new stocks – both of the health care sector – in the second quarter: Health Net Inc. (HNT) and CareFusion Corp. (CFN).

    In his last letter, Romick said that he could not predict whether the economy would experience inflation or deflation, and therefore positioned the portfolio not to “succeed terrifically well in either scenario, but may perform adequately in any scenario.”  


  • The Stocks You Can Buy Cheaper Than Steven Romick Did

    Steven Romick, portfolio manager at the FPA Crescent Fund, rarely misses the low point to buy a good value stock. Only two of the stocks from his portfolio have fallen to below his purchase price: Arris Group Inc. (ARRS) and Oracle Corp. (ORCL).

    Romick only bought two stocks in the first quarter, and has not been much of a buyer since the summer and fall of 2011 because he has not seen enough market volatility necessary to create opportunities. In his first quarter letter, he described the market and his purchasing plans as follows:  


  • Steve Romick - Forget Gold, Buy into the Gold You Can Eat.. Farmland

    One investment class most of us don't really think of getting exposure to or really have much access to is farmland.

    Perhaps we should, because some very smart investors such as Dr. Michael Burry and Jim Rogers have both been openly bullish on farmland.  


  • Steve Romick's FPA Crescent Fund Q1 2013 Commentary

    Overview: We may be in a new year, but not much else in the financial world has changed: interest rates remain low, investors still lack yield alternatives and global economic news has been, at best, neutral. This has all pushed the stock market higher. The S&P 500 returned 10.61% in 2013’s first quarter, while bonds1 returned -0.12%, and the FPA Crescent Fund returned 7.22%.

    The third quarter’s winners and losers are as follows:  


  • Forbes Interviews Deep Value Investor Steven Romick

    Accomplished fund investor Steven Romick actually started out to be a teacher and took education in college.  


  • FPA Crescent Fund Steven Romick's First Quarter Sells

    The "Great Investor" Steven Romick, Investment Officer of the First Pacific Advisor’s Crescent Fund, was actively selling in first quarter 2013. Romick’s Crescent Fund is currently valued at $6.1 billion and holds 57 stocks, two of them new. The fund has a quarter-over-quarter turnover of 2%. Guru Steven Romick is in the top 1% of money managers.

    As of quarter ending March 31, 2013, Guru Romick sold or reduced his position with these stocks:  


  • Steven Romick Buys 2 New Stocks

    Steven Romick, manager of the go-anywhere, value-based FPA Crescent Fund, said on CNBC as recently as March 20 that he has had difficulty finding companies with the kind of margin of safety and risk-reward ratio he demands. Consequently, Romick as of that time has 25% to 30% of his fund in cash, which he plans to deploy when volatility arrives again and presents opportunities.

    In total, Romick’s FPA Crescent portfolio as of the end of the fourth quarter contains 43 stocks, valued at $6.35 billion, and had a quarter-over-quarter turnover of 2%.  


  • Steven Romick's Letter to the Board of Occidental Petroleum Corp

    April 4, 2013

    Occidental Petroleum Corporation  


  • FPA's Steve Romick - There Is No Reason to Think the Fed Knows What It Is Doing

    Steven Romick was on CNBC this morning and as per usual he was making a lot of sense. Here are some of his comments:

    - Romick describes himself as a value investor and his fund as a "go anywhere" fund, as in he will invest wherever the value exists.  


  • Steven Romick Comments on Orkla

    Norway-based Orkla (PINK:ORKLY) has all the characteristics of a classic Contrarian special situation with a catalyst. At the time of our purchase, the company was viewed as an unwieldy conglomerate with activities in branded consumer goods (think a Scandinavia-focused Unilever), hydro power, aluminum industrial products (SAPA), specialty chemicals (Borregaard), solar (REC), and a significant minority interest in a privately-held paints and coatings business (Jotun). As if the aforementioned smorgasbord of activities was not sufficiently complex to discourage analysis, Orkla also had a portfolio of publicly traded securities and a collection of Scandinavian real estate investments.

    Our interest in the name was piqued by a publicly announced plan to reduce the ‘diworsification’19 activities and refocus primarily on the branded consumer goods business. Despite being buried in what had been widely regarded as a poorly run conglomerate, the branded goods businesses has a history of maintaining long-standing, best-in-class brands and has shown that it can develop successful new products. Although Orkla lacks global brands, about 80% of sales are in the Nordic region, roughly 80% of sales come from products with #1 market positions, and about 70% of sales come from its ten largest product categories.  


  • Steven Romick Comments on Groupe Bruxelles Lambert

    Groupe Bruxelles Lambert (GBL)(EBR:GBLB) is a Belgian holding company run by Albert Frere, a man widely referred to as the ‘Warren Buffett of Europe.’ The company owns significant stakes in a variety of established companies including Total (energy), Lafarge (cement), Pernod (alcoholic spirits), and GDF Suez (utility). Though the various underlying companies all have leverage of varying degrees, the holding company is essentially debt free, allowing for a simple sum of the parts evaluation.

    Our attraction to GBL was not just the 25-30% discount to NAV at which the shares have traded, but also that the various parts of the company were generally out of favor and relatively inexpensive at low double digit earnings multiples. By purchasing a collection of inexpensive companies via a holding company trading at less than NAV, we viewed ourselves as effectively taking advantage of a double discount.  


  • Steve Romick Crescent Fund - Q4 2012 Shareholder Letter



  • The Top Companies Steven Romick Is Shorting

    Steven Romick, who manages the FPA Crescent Fund at $20 billion First Pacific Advisors, is one of the few investors who discloses his short positions. As a value investor, Romick researches for stocks that are trading at discounts and usually in out-of-favor industries, with an eye to the macro environment. Romick just updated his fourth quarter portfolio. The biggest portfolio stocks he is expecting to move downward are: Express Scripts (ESRX), AvalonBay Communities (AVB) and Essex Property Trust (ESS).

    Express Scripts (ESRX)  


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