Steven Romick

Steven Romick

Last Update: 10-08-2015
Related: First Pacific Advisors
Robert Rodriguez

Number of Stocks: 59
Number of New Stocks: 3

Total Value: $9,351 Mil
Q/Q Turnover: 14%

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

Steven Romick Watch

  • 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. (NYSE: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.  

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User Comments

ReplyNewyorkpapi - 1 year ago
No its a pair trade he did.
ReplyJoeDaWealthManager - 1 year ago
Why short VZ? Is it a race to the bottom on price plans?

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