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%

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

Steven Romick Watch

  • 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 (HPQ) We purchased a small position in Hewlett Packard (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 (HPQ), CVS (CVS), Omnicare (OCR), Google (GOOG) and Interpublic (IPG).

    FPA Crescent Quarterly Commentary 2011

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User Comments

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No its a pair trade he did.
ReplyJoeDaWealthManager - 8 months ago
Why short VZ? Is it a race to the bottom on price plans?

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