Steven Romick

Steven Romick

Last Update: 2014-07-11
Related: First Pacific Advisors
Robert Rodriguez

Number of Stocks: 61
Number of New Stocks: 12

Total Value: $9,810 Mil
Q/Q Turnover: 13%

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

Steven Romick Watch

  • Steven Romick on WealthTrack

    Steven Romick on WealthTrack: On this week’s Consuelo Mack WealthTrack, a rare interview with Great Investor, Steven Romick of FPA Crescent Fund. Romick describes how he is keeping his five-star rated fund on top by balancing the forces of inflation and deflation and continuing his contrarian, value-oriented strategies.

    FPA Crescent Fund; 10-year averaged 9.85%.  


  • Steven Romick Buys Analog Devices, Adds to IPG, AIG and ORCL in Third Quarter

    Portfolio manager of the FPA Crescent Fund and Contrarian Value Strategy at First Pacific Advisors, Steven Romick, added one new domestic stock to his portfolio in the third quarter: Analog Devices Inc. (ADI). The largest additions to the 10 holdings he increased are: Interpublic Group of Companies Inc. (IPG), American International Group Inc. (AIG) and Oracle Corp. (ORCL).

    Romick’s diversified, risk-averse FPA Crescent Fund gained almost 20% over the 12 months ending June 30, 2012. He continues to employ his bottom-up value strategy of buying cheap, typically out-of-favor assets at discounts that would prevent permanent impairment of capital, which he discusses in his October GuruFocus interview.  


  • Steven Romick’s Latest Sells as of 9/30/2012

    As FPA Crescent Fund’s portfolio manager, investment Guru Steve Romick has made updates to his portfolio picks for the end of the third quarter. Below are the four companies of which he made stock reductions.

    PetSmart Inc. (PETM)  


  • GuruFocus.com Interview with Steve Romick, Portfolio Manager of FPA Crescent

    GuruFocus readers recently got to ask Steve Romick, FPA Crescent portfolio manager, their questions about investing. Romick's mutual fund FPA Crescent Fund is up 19.76% over the last year and has delivered an annualized return exceeding 9% over the last decade. His fund is slightly different from most mutual funds in that it is diversified across a different basket of asset classes to provide equity rates of return with less risk.

    Here are Steve Romick's answers to readers' questions:  


  • Steven Romick on Stock Picks, Bonds and Farmland

    Steve Romick of First Pacific Advisors discusses his investment procedure on CNBC. Romick has a diverse variety of investments in his portfolio, including corporate bonds, stocks and farmland. His favorite picks are Renault (EPA:RNO), Omnicare (OCR) and Rhino Resource Partners (RNO). He is short Volvo and Nissan.

      


  • Q&A with Investor Steven Romick of FPA Funds

    Top investor Steven Romick will join GuruFocus for an interview this month. You can ask him a question related to investing by leaving it as a comment below. GuruFocus will receive his answers via a phone interview in the next several weeks.

    About Steve  


  • Stocks Owned by Both FPA Capital Fund and FPA Crescent Fund

    FPA family of funds have built impressive track records. Among the two stock funds in the family, FPA Capital Fund has been run by the legendary Robert Rodriguez, and FPA Crescent Fund by Steven Romick. FPA Capital Fund has averaged 14.45% since inception in 1984. FPA Crescent Fund has gained 10.6% a year since inception in 1993.

    A major difference of FPA funds from other value shops is the FPA funds does put quite a lot research to macroeconomic picture, and they are very good at it. They predicted the housing price collapse and financial crisis well before crisis hit, and they were prepared by avoiding financials. Currently they are weighted in energy stocks as they think that over long term, oil will be more expensive and do well.  


  • The Stocks Steven Romick Keeps Buying

    Steven Romick is a strict bottom-up investor who does not neglect the macro picture. In the second quarter he finds stocks neither particularly cheap nor particularly expensive, according to his second-quarter commentary on his FPA Crescent Fund. He believes that Central Bankers are leading the world to inflation where his stocks should at least perform “nominally well,” but says, “If a business or asset is good and cheap – absolutely, not relatively – we'll buy it.”

    These are the stocks the fund manager keeps buying: Aon (AON), Cisco (CSCO), WellPoint (WLP) and Walmart (WMT).  


  • Crescent Fund's Steven Romick Comments on CareFusion

    From the second quarter commentary of Crescent Fund's Steven Romick:

    CareFusion We recently made an investment in CareFusion (CFN), a leading medical technology company serving hospitals in the United States and abroad. In this country, it has dominant market positions in a majority of its businesses. CFN's products and services are particularly attractive because they help lower hospitals' operating costs. With new, highly motivated and experienced management at the helm, we believe CFN could improve its R&D productivity and grow international sales at a faster rate. This should translate into better long-term EPS growth. Management's actions to date should increase the company's operating margin to a level more commensurate with its strong share position and in line with similarly positioned medical device companies. The company is trading at ~10x cash earnings and it has minimal net debt leverage, so we find CFN to be an attractive investment.  


  • Steven Romick FPA Crescent Fund Quarterly Commentary

    FPA Crescent declined 2.9% in the second quarter amidst global market weakness, but increased 3.5% for the first half. We continue to maintain our conservative posture given our cautious outlook that we lay out in the commentary below.

    The top individual contributors and detractors from our quarterly performance are as follows:  


  • Six New Buys from Steven Romick: ORCL, AIG, BK, Y, XRX, VOLV.B

    Steven Romick manages the $9 billion Crescent Fund for FPA Capital. His primary objective with his portfolio is to avoid permanent impairment of capital, rather than simply try to match the market. He believes this can be best done by understanding the downside risk of each stock. A motto at his fund, as he tells CNBC, is, “Good things happen to cheap stocks.”

    Romick found six new stocks in the second quarter: Oracle Corp. (ORCL), AIG (AIG), Bank of New York Mellon (BK), Alleghany Corp. (Y), Xerox Corp. (XRX) and Volvo (VOLV.B).  


  • Steve Romick: Fed Experiment Won't End Well

    The Fed's attempts to manage risk assets could have severe ramifications, argues the FPA Crescent manager.

    Speaking in reference to the U.S. Fed's monetary policy and the increasing indebtedness with greater Treasury issuance and what implications it will have on asset classes over next three to five years, he said, "We are living in a grand experiment. We have never lived through times like this before. We have never executed policy in this fashion, like we are doing now. And how it ends is anybody's guess, but just in simple terms, I think by avoiding the ability to clear prices at a normal low level as historically has happened in the past, the Fed's trying to step in and manage risk assets to too great a degree. I don’t think it's going to end well."  


  • Steven Romick's Top Stock Picks

    Steven Romick, First Pacific Advisors portfolio manager, discusses his goal to beat the market while reducing risk, and reveals his top stock picks, including CVS (CVS) and Microsoft (MSFT), with CNBC's Tyler Mathisen.

    Steve's top holdings: CVS Pharmacy, Aon (AON), Walmart (WMT), Covedien (COV) and Microsoft.  


  • Steven Romick on Renault

    Renault, the French auto manufacturer, owns significant stakes in publicly traded companies, including Nissan, Volvo and Daimler. One can effectively hedge out (i.e., short) Renault’s ownership interest in these entities and create a “stub” representing Renault’s own auto manufacturing operations. Given that the pre-tax value of Renault’s public stakes is worth approximately 130% of its own share price, one is effectively being paid to own Renault. Recently, we took advantage of our flexible mandate to create the so-called Renault stub and have the market pay us €5 billion to own Renault’s core operations, which earned pre-tax income in excess of €1 billion in 2011. Though Renault faces a tough operating environment in Europe, we believe its auto business is worth something. Therefore, we purchased Renault and shorted Nissan and Volvo. Over the past decade, the Renault stub has experienced periods of both positive and negative valuation in the market. We first executed this trade profitably in 2006 and now, given its healthier balance sheet, better geographic mix and improved profitability, we are happy to reestablish a position. We believe the value that is being given away has less financial risk than in the past. If the Renault stub trades up to just a zero value, the outcome would be nicely accretive.  


  • Steven Romick: Quality Companies Underperformed

    FPA Crescent’s long-term, conservative approach to protect and grow your money did exactly both this first quarter, but we did trail the stock market’s big move, which was generally fueled by companies more economically sensitive and leveraged than we currently prefer. FPA Crescent returned 6.6% in 2012’s first quarter; the S&P 500 returned 12.6%. Our Fund’s performance was influenced by a variety of factors:

    Quality: Companies in the Crescent portfolio are, on average, of a higher quality than the companies currently pushing the stock indices higher. Firms with the greatest operational and/or financial leverage have the greatest “torque” in an improving economy, and it was these companies that drove performance in the first quarter. Although our companies, on average, underperformed in the most recent quarter, we prefer a more conservative course given our ongoing conviction that the global economy still faces significant headwinds and that markets will exhibit continued volatility.  


  • Steven Romick Interview: Comments on the Markets, Shorting Spanish Banks

    Steven Romick, managing partner at Pacific Advisors, discusses his view of the markets and his current strategy:

      


  • Steven Romick Is 25% Cash and Buys Only Google, Interpublic Group and Bank of America

    Steven Romick, CFA of FPA Crescent Fund, a Los Angeles, Calif.-based firm with $19.3 billion assets under management and where fundamentals are paramount, hasn’t been excited about valuations lately. But he told Bloomberg in March that he would prefer owning stocks than sitting on a lot of cash when he believes inflation is likely coming.

    The first-quarter positioning of his portfolio is 64.29% long common stock, -3.24% short common stock, 0.73% limited partnerships, 0.12% derivatives/futures, 0.21% preferred stock and convertible bonds, 2.88% total corporate bonds, -0.8% short bonds and notes, 1.67% mortgage backed securities, 9% total U.S. government and agency securities, and 24.63% cash and equivalents.  


  • FPA Crescent Fund Manager Steven Romick Is Sitting on 25% Cash, Thinks Walmart Is Attractive

    Every once in a while Bloomberg or CNBC bring on a portfolio manager worth taking the television off of mute to listen to. Today Bloomberg supplies us with Steve Romick:

    - He is concerned about long-term implications of global money printing, the likely result being inflation.  


  • Steven Romick’s 3 Stock Picks While ‘Charting a New Path’

    Steven Romick feels like a trailblazer in a challenging new economic world where he is forced to bet on policy, he said in his investor letter. The manager of the $7.48 billion FPA Crescent Fund has traditionally invested in good but out-of-favor companies that have low P/E ratios and trade at discounts to intrinsic value. With that strategy he has returned an average of 11% per year over the last 10 years.

    At the end of the fourth quarter what he sees as a dim economic environment and hazy business prospects compelled him to have cautious positioning with net exposure to risk assets at 70.5%, which includes 5% of mainly lower-risk corporate bonds. Romick is conflicted about the economic landscape of 2012. He believes the market won’t likely crash as it did in 2008-09 mainly because people are more fearful. Yet despite deep analysis, he could not decide whether inflation or deflation is more likely to occur. Therefore, he did not tilt his portfolio one way or the other. Nevertheless, he said in his investor letter, “In the inflation outcome, our stocks should do well (at least nominally), but not as well as a portfolio committed to commodities. Should deflation come to pass, stocks will likely perform badly, but in that event, our substantial cash stake will allow for deployment at lower asset prices.”  


  • FPA Crescent Fund Buys Arris Group, Thermo Fisher, Citigroup, Sells Pfizer Inc, eBay, Pharmerica

    Steven Romick of FPA Crescent Fund just reported its fourth quarter portfolio. The fund has built impressive track record since inception and the size of the fund has grown tremendously. Over the past 5 years FPA Crescent Fund had a cumulative gain of 25.6%, while the S&P 500 index lost 3%. Over the past 10 years the fund gained an cumulative 125.6%, which the S&P 500 gained just 32%.

    Steven Romick certainly sees a lot inflows as he is better known to financial community. He is the only Guru that reports short positions and his short is tracked in his portfolio.  


Add Notes, Comments or Ask Questions

User Comments

Keithlevy1234
ReplyKeithlevy1234 - 2 weeks ago
No its a pair trade he did.
JoeDaWealthManager
ReplyJoeDaWealthManager - 3 months ago
Why short VZ? Is it a race to the bottom on price plans?



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