Steven Romick

Steven Romick

Last Update: 2014-04-16
Related: First Pacific Advisors
Robert Rodriguez

Number of Stocks: 53
Number of New Stocks: 1

Total Value: $8,552 Mil
Q/Q Turnover: 3%

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

Steven Romick Watch

  • FPA Crescent Fund Q3 Portfolio Update

    Steven Romick of FPA Crescent Fund just released his third quarter portfolio. He is certainly finding a lot of opportunities. As of 09/30/2011, FPA Crescent Fund owns 68 stocks with a total value of $3.7 billion. These are the details of the buys and sells.

    Different from a lot of pure bottom-up value investors, Steven Romick and his colleague Robert Rodriguez pays close attention to macro market. They have successfully avoided many bubbles and market crashes. Although he is not happy with the government policies, Steven Romick did find many opportunities in this market.  


  • Steven Romick’s Top-Down Bottom-Up Value Investing

    As portfolio manager of FPA Crescent Fund, Steven Romick manages roughly $6.7 billion and has delivered more than an 11% average annual return over the last 10 years. He has a unique value investing style. Though he is a bottom-up investor, the macro picture factors heavily into his analysis process. For instance, the strengthening balance sheets of banks do not appeal to him if the macro environment signals that the world could fall apart. The third layer to his approach is a bold contrarian stance. Maintaining this balance requires a firm grasp of fundamentals, penetrating insight into the global economy, and guts.

    Tech  


  • Wisdom Gleaned from Consuelo Mack’s Interview with Steven Romick of FPA Crescent Fund

    Readers need to go to the site to view the 26 minute interview
    Great investor traits  


  • FPA Crescent Fund Q2 Portfolio Update

    Steven Romick of FPA Crescent Fund reported his second quarter portfolio. The fund has achieved one of the best performances among all mutual funds. Steven Romick buys Canadian Natural Resources Ltd., Cisco Systems Inc., Owensillinois Inc., Microsoft Corp., Walmart Stores, Travelers Cos Inc., Vodafone Group Plc, Occidental Petroleum Corp., Aon Corp., sells Total S.a. Ads, Discover Financial Services during the 3-months ended 06/30/2011, according to the most recent filings of his investment company, FPA Crescent Fund. As of 06/30/2011, FPA Crescent Fund owns 68 stocks with a total value of $3.4 billion. These are the details of the buys and sells.

    FPA Crescent Fund is the only portfolio that reports its short position. These short positions are listed under Steven Romick’s portfolio. Steven Romick write great commentaries, and we strongly recommend you to read his latest commentary. His recent favorite stocks include Microsoft (MSFT) and Johnson & Johnson (JNJ).  


  • Steven Romick (FPA Crescent Fund) – Interview Covering Recent Stock Purchases

    A Barron’s interview with Romick which covers his most recent purchases and some interesting comments about how at one point his investors pulled 90% of the fund's assets during a stretch of underperformance:

    The manager of the $6.7 billion FPA Crescent Fund (ticker: FPACX) is such a quick thinker that his speech can scarcely keep pace. That's apparently good for his investors, beneficiaries of Steven Romick's long and happy track record at the fund, which has returned 9.3% annually during the past decade as of July, versus 2.6% for the Standard & Poor's 500 Index.  


  • Steven Romick on Microsoft

    Microsoft (MSFT) has gotten its share of not-entirely-undeserved bad press in recent months. During our Q1 2011 letter we disclosed that, “The greatest negative impact in the quarter came from Microsoft (down 19bps), a holding we have increased to take advantage of price weakness, given the current low expectations of a P/E of just 10x.” Despite the modest recovery this quarter, we still think the shares are attractively valued, as reflected by an equity multiple that remains at roughly 10x earnings, and an enterprise value of about 7x operating profit.

    Irrespective of the stock's lowly valuation, we actually have some enthusiasm for Microsoft's earning prospects. As measured by operating profit, Microsoft's fiscal 2011 earnings may actually be more than 50% higher than five years ago. Though the company clearly faces challenges, we can point to a number of opportunities that suggest earnings five years hence should exceed today's – though by what amount is open to debate. We like that the market appears to have priced its business as one in permanent decline. We believe the market has therefore handed us a free option on the possibility for future growth.  


  • Steven Romick on Johnson & Johnson

    We were able to purchase Johnson & Johnson (JNJ) at an 8%+ free cash flow yield, giving no consideration to the company's cash position, in part because of negative stories caused by the company's consumer recalls. Although the consumer business is a terrific asset, it generates less than 25% of the company's free cash flow and is almost certain to recover from recent missteps. Occasionally, the media‟s undue focus on one division will allow us the opportunity to acquire the entire business at an attractive price. When we look at JNJ, we worry about many things (long-term health care spending, unusually low tax rate, and very high margins), but JNJ is one of the world's great franchises, with over 50% of sales derived internationally, plus tremendous product/business diversification, a AAA balance sheet, and compelling long-term demographic trends benefiting each of their businesses. The combination of business franchise and low price attracted us to the company. JNJ's shares were as inexpensive as they‟d been in thirty years, giving us another of what we consider to be infinite-duration bonds with rising coupons, i.e., 8% plus the growth.

      


  • Steven Romick Quarterly Commentary

    FPA Crescent Fund Quarterly Commentary: