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%

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

Steven Romick Watch

  • Risk-Averse Yacktman, Witmer and Romick Plow Millions into Oracle

    When conservative investors light upon an undervalued, quality stock in a heady market, they are likely to pounce. That is what gurus Steven Romick, Donald Yacktman and Meryl Witmer did in the second quarter with Oracle (NYSE:ORCL), a dynamic company boasting all 500 of the Fortune 500 as clients.

    Romick, Yacktman and Witmer typically tread cautiously and never follow where the crowd goes, as evidenced in their return performance. All three avoided the worst of the 2008 crash, losing far less than the market’s 37% plunge that year. Steven Romick put his view frankly in his 2008 investor letter: “We do not see opportunities in equities today, relatively speaking.” He also enlarged his fund’s cash position to 38.5% by the end of the year to await better opportunities.  


  • 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. (NYSE: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. (NYSE: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. (NASDAQ:ARRS) and Oracle Corp. (NYSE: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 (NASDAQ:ESRX), AvalonBay Communities (NYSE:AVB) and Essex Property Trust (NYSE:ESS).

    Express Scripts (NASDAQ:ESRX)  


  • Steven Romick’s Top Growth Predictable Stocks

    As the co-managing partner of Los Angeles-based First Pacific Advisors LLC, Steven Romick heads the firm’s Crescent Fund, through a contrarian value strategy. Romick has helped deliver about 125 percent cumulative return over the last 10 years, beating the S&P 500 by a long shot.

    A former GuruFocus premium member, he is the ultimate bottom-up, absolute value investor with a long-term focus, relying on price and focusing on the macro economy to drive his valuations.  


  • Steven Romick Adds to Microsoft, AIG and Interpublic Group

    Of the $20 billion FPA Capital has in assets under management, Steven Romick manages $9.9 billion in its Crescent Fund, none of which he saw fit to invest in new stocks for the second consecutive quarter. The contrarian value investor instead added the most to Interpublic Group (NYSE:IPG), Microsoft Corp. (NASDAQ:MSFT) and American International Group Inc. (NYSE:AIG).

    His large cash holding right now, however, indicates he is not finding anything new that is attractively priced. Romick described his investing philosophy in his October interview with GuruFocus: “Well, we are primarily bottoms-up analysts,” he said. “If a business is cheap or an asset trades at a discount we’re interested. But we always have an eye to protecting capital. That’s where our macro considerations come in.”  


  • FPA Capital Fund Inc. Quarterly Commentary

    After underperforming the first two quarters of the year, your portfolio outperformed its benchmarks in the third quarter of 2012. However, the performance still lags the benchmark on a year-to-date basis. The fund’s elevated cash level has contributed roughly 250 basis points of performance drag thus far in 2012, but our absolute value strategy necessitates that we hold cash when there is a dearth of value in the markets we follow.

    We have articulated many times over the last couple of decades that cash is a residual of investment opportunity, and we do not target a certain percentage. That is, cash levels are low when there is an abundance of value and high when there is a scarcity of absolute value opportunities. We think of cash as an asset that has no duration, but provides an embedded call option that can be exercised when quality assets are cheap and on sale.  


  • Steve Romick Comments on Ensco

    Ensco (NYSE:ESV)10 Whereas Walmart is an example of a type of "compounder" we like to buy, Ensco is an example of a "3:1" - a purchase we make when we believe the potential upside is 3x larger than the potential downside. We haveowned Ensco for a number of years, and it has also been discussed in the past, along with our investments in other oil service companies. 11 Ensco is an average business with no long-term competitive advantages. It seems that to effectively compete, a rig company only requires capital and a contract with an Asian shipyard. Such ease of market entry convinces us that a company that builds a rig and then leases it should not expect to earn more than a 10% to 12% long-term return on capital. In a tight market, demand exceeds the number of rigs available, and return on capital rises above the long-term average. At such times, one generally expects to see new orders for rigs. As those rigs come to market a few years down the road, day rates, and thus returns on capital, decline.

    Earnings at Ensco and other oil service companies are currently above our expectations for normal returns on capital due to a shortage of available rigs. Capital and time will correct that. Currently, there are lots of rigs under construction. In 2013, 35 new jackup rigs will be built and delivered, an increase of 8% to the current worldwide fleet of 426. Additionally, 21 new floater rigs will be built and delivered, an increase of 7%  


  • Steve Romick Comments on Walmart

    Walmart: Walmart's earnings met or exceeded expectations in the last year a nd concerns about its ability to grow dissipated, triggering renewed investor interest in the company. Not much changed in Walmart's fundamentals, but the stock price and P/E 2 moved higher. With our investment having exceeded our return expectations and greater downside risk accompanying the higher stock price, we scaled back our stake. We'll use Walmart to illustrate how an investment can come full circle – from buy to sell. Our original thesis, laidout in our 2010 Q4 commentary, is reprinted below.

    Walmart (NYSE:WMT) seems anomalous in a world where stocks have rebounded so dramatically from the stock market's 2009 bottom. Walmart's stock averaged $48.59 in February 2009…. At that price, it traded at a TTM 3 and Forward P/E 4 of 14.5 and 13.0x, respectively. Walmart closed 2010 at $53.93 per share – more dear in price but cheaper in valuation – trading at a lower TTM and Forward P/E of 13.3 and 12.1x, respectively.  


  • Steven Romick Owns French Car Maker Renault, Shorts Nissan and Volvo

    In an interview on WealthTrack with Consuelo Mack, FPA Capital’s Steven Romick put forth a complex play on the auto industry and European crisis: buying long Renault (RNO_FP) shares and shorting Volvo (PINK:VOLVY) and Nissan (NSANF). The positioning, he said, is resulting in him getting paid to own Renault.

    Renault interested Romick because it was associated with two of his favorite criteria – an out-of-favor industry and lots of bad news. The auto industry has suffered, but Renault, an auto manufacturer, is based in France, where new car registrations declined 13.8% from January to September 2012 compared to the same period of 2011. More broadly, in the EU, the new car market contracted by 7.6%.  


  • 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. (NASDAQ:ADI). The largest additions to the 10 holdings he increased are: Interpublic Group of Companies Inc. (NYSE:IPG), American International Group Inc. (NYSE:AIG) and Oracle Corp. (NYSE: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 (NYSE:AON), Cisco (NASDAQ:CSCO), WellPoint (WLP) and Walmart (NYSE: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. (NYSE:ORCL), AIG (NYSE:AIG), Bank of New York Mellon (NYSE:BK), Alleghany Corp. (NYSE:Y), Xerox Corp. (NYSE: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 (NYSE:CVS) and Microsoft (NASDAQ:MSFT), with CNBC's Tyler Mathisen.

    Steve's top holdings: CVS Pharmacy, Aon (NYSE:AON), Walmart (NYSE: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.  


  • Top 5 conviction picks from Steven Romick

    Romick joined FPA Crescent Fund in 1996. He is the portfolio manager of FPA Crescent Fund and the Contrarian Value Strategy. He is also a research analyst for FPA Capital Fund and the FPA Small/Mid-Cap Absolute Value Strategy and FPA New Income and the FPA Absolute Fixed Income Strategy. Prior to joining FPA Crescent Fund, Steven was Chairman of Crescent Management and a consulting security analyst for Kaplan, Nathan & Co.

    Mr. Romick's portfolio consists of long and short equity positions and short term bonds and cash. He seeks value in all parts of a company's capital structure. In general, the manager invests in securities consensus does not want to own. The fund searches for stocks and convertible bonds reflecting low price-to-earnings ratios and trading at discounts vis-à-vis market value.  


  • Steven Romick Comments on Hewlett Packard, Google, Interpublic, WPP

    Steven Romick made valuable remarks on several of his holdings in his fourth-quarter letter:

    Hewlett Packard (NYSE:HPQ) We purchased a small position in Hewlett Packard (NYSE:HPQ) as part of a tech basket in 2011. Although the tech basket performed reasonably well, HPQ was a mistake – not just because we have lost money thus far, but also because we allowed rationalization to creep into our process. We established a small, toehold position at an average price just over $40, believing that the P/E was just 8x, that the printing business was an annuity, and that the services business had sustainable cash flow at current (or better) levels. Subsequent research revealed that neither business was as resilient as we thought. Instead of selling our stake at that time, though, we argued that the stock price remained cheap enough to stay in the basket. We were wrong. HPQ management made a series of reckless decisions, including a multi-billion dilutive acquisition; a publicly announced commitment to WebOS that was retracted within a month; and declaring their intention to sell their PC business without having a buyer lined up (leaving customers to worry about who would stand behind the products in the future, and undermining sales efforts aimed at IT departments).  


  • Steve Romick (FPA Crescent Capital) Q4 2011 Letter to Investors

    Steve Romick discusses the global economy, as well as investments Hewlett-Packard (NYSE:HPQ), CVS (NYSE:CVS), Omnicare (OCR), Google (NASDAQ:GOOG) and Interpublic (NYSE:IPG).

    FPA Crescent Quarterly Commentary 2011

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