Steven Romick

Steven Romick

Last Update: 04-12-2016
Related: First Pacific Advisors
Robert Rodriguez

Number of Stocks: 50
Number of New Stocks: 1

Total Value: $9,436 Mil
Q/Q Turnover: 11%

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

Steven Romick Watch

  • CVS: Steven Romick Analysis

    Although we have owned CVS (NYSE:CVS) since early 2010, we have subsequently purchased additional shares and hedged a portion of their Pharmacy Benefit Management business. Since the nature of the investment changed in both size and structure, we thought further discussion was warranted. CVS lacks the international component we've sought, but we believe the pharmacy companies are well-positioned to benefit from a number of macro trends. We prefer investments where the wind is at our backs, and we believe that is the case with this company. The aging population will drive utilization. The population of older people is growing more quickly than younger age groups, and pharmacy visits will therefore increase. What's more, the 65+ cohort has almost 3x the number of prescriptions filled per year as the 19-64 cohort. In addition, the Medicare market is growing significantly and CVS is well-positioned to benefit from an estimated 32 million people expected to gain coverage, beginning in 2014.

    Demand Drivers  


  • FPA Crescent Fund (Steven Romick) Q1 Letter

    The optimists held sway in the first quarter of 2011 and ended the quarter on a good note, with the stock market having returned 5.9%.(1) Crescent returned 4.7%, capturing 80% of the market’s return with risk exposure at just 58% of capital during the period. (2) We have provided a more detailed performance summary at the end of this letter.

    Quarterly Winners Quarterly Losers  


  • "Wait and Hope:" Steven Romick's Comments at Value Investing Congress

    Steven Romick addressed the Value Investing Congress on May 3, 2011. He spoke about the state of the U.S. economy and gave analyses of several stocks from his current portfolio and advice to value investors. Below is an excerpt regarding his CVS (NYSE:CVS) holding. The whole speech is available here.

    When we first purchased CVS in 2010, it was trading at about 11.5x 2011‘s earnings. We felt the valuation adequately compensated for our concerns regarding their PBM business – as well as for our admittedly less robust understanding of its prospects. As CVS‘ stock price began to tick up, the PBM comps, Medco and Express Scripts, moved up even more, reducing the price of the CVS retail stub.  


  • FPA Crescent's Steven Romick comments on CVS Caremark

    Steven Romick at the FPA Crescent fund is one of the top value managers in the mutual fund space. The fund has served its shareholders very well by delivering superior returns of 11% CAGR over the last decade with lower risk relative to most other mutual funds.

    In addition, FPA Crescent is well known for its shareholder communication. They regularly conduct conference calls to update the fund shareholders on FPA’s view of the world and on the fund’s portfolio activity. These calls have been a rich source of new ideas for me. I first learnt about Ensco through comments made on a call they held post the BP oil spill. The investment has done very well since then.  


  • Top Holdings of Steven Romick at FPA Crescent Fund: ESV, AON, COV, CVS, OXY

    We have recently updated the buys and sells of Steven Romick, the manager who has built solid consistent performance at FPA Crescent Fund. In this article we discuss his top holdings.

    As discussed in the previous report, Steven Romick is very bullish on large cap stocks.  


  • FPA Crescent Fund Buys CVS, MSFT, WMT, AON, PFE, Sells PHG, CVX, HNT, GKSR, LOW

    FPA Crescent Fund released its fourth quarter portfolio. The fund is run by Steven Romick, who has achieved impressive long term market beating record. These are the details of the buys and sells.

    Steven Romick buys CVS Caremark Corp., Microsoft Corp., Wal-Mart Stores Inc., Aon Corp., Pfizer Inc., Omnicare Inc., Total S.A., The Travelers Companies Inc., Covidien Plc., Occidental Petroleum Corp., Ensco Plc, sells Koninkl Phil E Ny Shares, Chevron Corp., Health Net Inc., G&k Services Inc., Lowes Companies Inc. during the 3-months ended 12/31/2010, according to the most recent filings of his investment company, FPA Crescent Fund. As of 12/31/2010, FPA Crescent Fund owns 61 stocks with a total value of $2.4 billion.  


  • FPA Crescent Fund: The Portfolio Has Its Largest Weighted Average Market Cap; Comments on PetSmart (PETM) and Wal-Mart (WMT)

    The Portfolio Has Its Largest Weighted Average Market Cap

    Steven Romick of FPA Crescent Fund released his Q4 shareholder letter today. The fund slightly underperformed the market in 2010, but it has great long term track record. Steven Romick likes large cap now. He thinks large caps are undervalued. Steven Romick highlighted two large caps: PetSmart (PETM) and Wal-Mart (NYSE:WMT)  


  • Steven Romick of FPA Crescent Fund Buys BUD, WDC, MSFT, JNJ, WAG, RIG, KFT, CVS

    Steven Romick of FPA Crescent Fund just released his third quarter portfolio. He is the only guru that reports his short positions. These are the details.

    FPA Crescent Fund underperformed the market slightly this year. But over ht epast 10 years, it has gained 178% cumulatively, as the market lost 8.1%. As of Sept. 30, FPA Crescent Fund is 54.43% long, 4.38% short, 18% in cash.  


  • Steven Romick Publishes 3Q10 Letter; Comments on Western Digital Corporation

    PFA’s Steven Romick published his 3Q10 letter. His fund did worse than the general market for the quarter and better YTD:
    After a tough August, the stock market turned around in September, erasing its year-to-date losses. Crescent returned 7.4% in the third quarter and 5.3% year-to-date, versus the S&P 500’s 11.3% and 3.9%, respectively.


    In the letter, Romick highlighted his new investment idea:
    We recently added Western Digital Corporation (NASDAQ:WDC), the second largest producer of Hard Disk Drives (HDDs), to the portfolio. Its stock price had fallen almost 50% from its high earlier this year to the low-to-mid $20s where it was trading around 6x trailing twelve-month earnings (fully taxed). If one were to adjust for their roughly $10 of net cash per share, the adjusted P/E would have been less than 4x our purchase price. Clearly, the market does not see WDC’s recent earnings as sustainable. We don’t either, but we do believe their earnings might stabilize at more than $3 per share and trough around the $2 level during this cycle.  


  • Stocks that both Steven Romick and T Boone Pickens Own: Occidental Petroleum Corp., Apache Corp., Chevron Corp.

    T. Boone Pickens made his money in oil. Although in the recent years, he has diversified into other energy segments, he is still very much in the game. He manages BP Capital that is dedicated to Oil & Gas companies. The fund has about $280 million invested in about 29 stocks, most of them are Oil & Gas company.

    Steven Romick, portfolio manager of FPA Crescent Fund, is all-asset class manager, and right now, he has his eyes on some discrete Oil & Gas companies.  


  • Steven Romick Comments on AON, OXY, and CVS

    Businessweek’s Suzanne Woolley had a recent interview with Steven Romick. Romick mad the following comment of his holdings:
    AON

    Aon (NYSE:AON) is the largest insurance broker in the world. They're brokers, not underwriters, so as the price to insure a building goes up, they'll make more money on their commission. The pricing for their products is relatively soft right now. At some point that will change and—given stable pricing and their cost-savings program—we'll make good money. We think interest rates are rising, which would be good for Aon. They have a ton of cash on the books that can be reinvested at a higher rate.  


  • Fall 2010 Issue of Graham and Doddsville is Available

    Here is an excerpt by the publishers at www.grahamanddodd.com:


    We are pleased to present you with the tenth edition, Issue X, of Graham & Doddsville, Columbia Business School‘s student-led investment newsletter co-sponsored by the Heilbrunn Center for Graham & Dodd Investing and the Columbia Investment Management Association. This issue features an interview with Steven Romick, portfolio manager of FPA Crescent Fund. Mr. Romick outlines his free-range capital allocation approach and walks through his preference for large-cap, internationally exposed companies with pricing power. He also discusses the fund‘s recent investment in distressed mortgages.  


  • Steve Romick’s Top Short Positions: VZ, AVB, ESS, FRT

    Shorting stocks as a strategy is reserved for people who really know what they are doing. The potential loss for longing equity is 100%, the potential loss for shorting is infinity. On the other hand, shorting is being practiced by so few people so the competition is not as fierce. And in general, people who short tend to do more homework than people who go long.

    In the past, we covered Steven Romick of FPA Funds rather extensively. He was a nominated for the best fund manager for the decade by Morningstar in 2009. The fund he manage, FPA Crescent Fund returned 10.18% for the 10 years through August 31, 2010, a decade during which S&P 500 managed to lose money.  


  • Steven Romick on Energy Companies: ESV, OXY, RDC, APA, TOT, CVX

    Steven Romick, manager of Crescent Fund at First Pacific Advisors aspires to achieve better than market return while expose the investors to less of the market volatility. For the past 17 years since the fund’s inception, he has just done that.

    In the quarter ended on June 30, 2010, the market (S&P 500) declined 11.4% but Crescent only captured 52% of the market’s slide, declining 5.9% in the period. This is in line with the Fund’s historic 55% downside participation, according to Romick who published his 2Q10 Letter to Shareholers recently.  


  • Steven Romick on Aon Corp.

    Aon Corp.

    As discussed in our year-end 2009 letter, we like Aon Corp. for its low valuation, world-class insurance brokerage operation, and shareholder-friendly management. We would be remiss if we did not mention it again today given their recently announced purchase (pending shareholder approval) of consulting firm Hewitt Associates. If asked, we would have recommended against the deal; we’d prefer an aggressive share buyback instead. A buyback would have further leveraged the company’s exposure to higher interest rates, greater inflation, economic recovery, overseas markets and, at some point, a better underwriting environment (i.e., a “harder market”).  


  • Guru Investor Steven Romick Comments on Aon Corp.’s Proposed Merger with Hewitt Associates

    Aon Corporation is a holding company whose operating subsidiaries carry on business in three distinct segments: insurance brokerage and other services; consulting; and insurance underwriting. Recently, the company seems to be no longer contented with the that line of business and wants to branch out.

    Steven Romick, the manager of FPA’s Crescent Fund bought into Aon starting from 4Q09 and added position in 1Q10.  


  • Steven Romick Publishes Quarterly Letter, Commenting on Blue-Chips: BUD, AON, WMT, JNJ

    Steven Romick published quarterly letter for the quarter that ended on June 30, 2010. For the first half, his FPA Crescent Fund declined 1.9% for the six-month period, versus the S&P 500’s 6.7% drop. For the past 10 years, Crescent made an average of 11.0% per year whereas S&P 500 returned -1.6% per year. Since inception of 1993, the fund returned 10.6% per year and S&P 500 returned 7.0%.

    Romick is very flexible in his investment approach: common shares (both long and short), bond, a large position in cash; As of the quarter's end, the fund is "conservatively postured": equity exposure long position is 45.3% and short position is 4.9%; corporate bond takes up 26.7% and mortgages 2.6%. As much as 26.7% is cash.  


  • Steven Romick Q2 Shareholder Letter: Portfolio remains conservatively postured

    Steven Romick of FPA Crescent Fund just released his Q2 shareholder letter. We highly recommend you to read it. "... portfolio remains conservatively postured as we watch the economy try to clear a raft of hurdles, including: • The eventual end of stimulus funds. • As many people are no longer able to live rent-free in bank-owned homes and have to once again pay for shelter, we expect a trickle-down effect of reined-in consumer spending. • Higher taxes. • A housing recovery that remains in the distant future, leaving mortgage holders with negligible equity in their homes."

    A difficult job market, characterized by persistent unemployment and underemployment and a growingbut- invisible segment of ‘disenfranchised’ workers who aren’t counted because they have given up job hunting. Meanwhile, job growth is decelerating. • The end of unemployment insurance benefits for many out-of-work Americans. Average weeks unemployed have now reached 35.2, exceeding the post WW II high of 21.2 weeks in 1983.4 • Continued consumer deleveraging.  


  • Advice by Seth Klarman & Steven Romick: How to Protect your Investments in a Deflation

    The 'D' word has started to rear its ugly head. Greg Zuckerman at the Wall Street Journal recently reported that some of world's leading investors (Bill Gross, Jeremy Grantham, and David Tepper) are becoming worried about deflation and re-shaping their portfolios to prepare for a possible period of falling prices. Even though value investors don’t invest based on macro forecasts, it is a grave mistake to totally ignore the macro environment, especially by the experts at PIMCO.

    I am not a macro economist or have any forecasting abilities. I have zero opinion on whether the environment will be inflationary or deflationary going forward, but in this article, I highlight points by notable investors, Seth Klarman at Baupost Group and Steven Romick at FPA Crescent, that value investors need to be cognizant about.  


  • Consuelo Mack Interviews Steven Romick

    On this week’s Consuelo Mack WealthTrack, Consuelo sits down with Great Investor, Steven Romick, the founder and portfolio manager of the five star FPA Crescent Fund. Romick’s contrarian views and go anywhere, invest in anything style have put him in the top one percent of all money managers over the last decade and earned him a finalist slot for Morningstar’s new Fund Manager of the Decade Award.

      


  • Bloomberg: Romick Holds Cash Like Klarman in Top-Performing `Free-Range Chicken' Fund

    Bloomberg has a good article on Investment Guru Steven Romick.

    Excerpt:
    Steven Romick says he aims to beat the market when stocks are falling and underperform by a smaller margin when they’re rising.  


  • Steven Romick Top Holdings: ENSCO International Inc., Covidien PLC, Aon, Vodafone Group plc, PETsMART Inc., Occidental Petroleum Corp.

    Steven Romick manages the FPA Crescent Fund (FPACX). The fund was started by himself in 1993 and for the past 17 years, it averaged a 11.2% per year, compared to the stock market’s return of 7.9%. Considering that the fund looks for opportunities across the asset class: stock, fixed income, cash, and even short positions. What is remarkable is that he achieved the return with an average cash level of mid-twenty percent, and stocks have averaged less than 50% of the Fund’s assets, as he disclosed in the latest Letter to Shareholders.

    Performance  


  • Steven Romick Short Positions: Verizon Communications Inc., AvalonBay Communities Inc., Essex Property Trust, Federal Realty Investment Trust, Health Care Property Investors

    Steven Romick manages the FPA Crescent Fund (FPACX). The fund was started by himself in 1993 and for the past 17 years, it averaged a 11.2% per year, compared to the stock market’s return of 7.9%. Considering that the fund looks for opportunities across the asset class: stock, fixed income, cash, and even short positions. What is remarkable is that he achieved the return with an average cash level of mid-twenty percent, and stocks have averaged less than 50% of the Fund’s assets, as he disclosed in the latest Letter to Shareholders.

    Performance  


  • Romick: Market Not as Interesting for Deep Value Investors

    In an interview that took place in early May, 2010, FPA Crescent manager Steve Romick said it's simply harder to find great risk-reward opportunities in today's market.

    Video from Morningstar:  


  • FPA Crescent Fund Buys Occidental Petroleum Corp., Apache Corp., Vodafone Group, Aon Corp., Ensco International Inc., Sells Conocophillips

    Steven Romick is the mutual fund manger that has both long and short positions in his fund. Although he likes the market appreciation over the past year, but he does not like the market valuations, where he cannot find ideas. This is his buys and sells in the first quarter.

    Historically, FPA Crescent Fund has participated in 73% of the upside, but just 51% of the downside. This is one of the reasons his fund has averaged more than 11.5% over the past 10 years when the market is negative.  


  • Steven Romick Quarterly Shareholder Letters

    If you close your eyes, it’s almost as if 2008 didn’t happen...almost. Last year, we were writing of market declines not seen in most of our lifetimes. We now flip the page and, in stark contrast, the horror novel has become a harlequin romance as investors’ fears have turned into an illicit love affair with risk assets. The S&P 500 fell 51.5% from its May 2008 peak through its March 2009 trough, but then returned 67.8% through December, to end the year up 26.5%. (Maybe it’s an adventure novel.).1 Crescent, increased 5.3% for the fourth quarter, and 28.4% for 2009 and, in doing so, successfully earned back its 2008 losses. We are pleased to report that in the most recent two-year period of tremendous volatility, Crescent increased 2.0%, while the S&P 500 declined 20%, both returns

    on a cumulative basis. More detailed returns of both the Fund and the comparative indices can be found at the end of this commentary.  


  • Steven Romick Top Purchases: Abbott Laboratories, Aon, CIT Group Inc., Pfizer Inc, Vodafone Group plc

    (GuruFocus, March 3, 2010) Recently, Steven Romick was seen interviewed by Consuelo Mack of WealthTrack when he talked about his investment philosophy, experience during the past decade, and some of his holdings.

      


  • Steven Romick Top Holdings: ENSCO International Inc., Covidien Ltd., Chevron Corp., Total S.A., PETsMART Inc., Health Net Inc.

    (GuruFocus, March 3, 2010) In the January 18, 2010 Letter to Shareholders, Manager of FPA Crescent Fund Steven Romick discussed his take on the economy and investment outlook. Like that of his partner Robert Rodriguez, his writing is informational and insightful, a must-read for value investors. Here are my notes:

    On Economy

      


  • New Guru Added: Steven Romick of FPA Crescent Fund; Top Purchases: Aon, Vodafone Group Plc, Pfizer Inc., Ensco International Inc., Abbott Laboratories

    GuruFocus is very pleased to announce that we have added Steven Romick of FPA Crescent Fund into our List of Gurus.

    Steven Romick has been the portfolio manager of FPA Crescent Fund since its inception in 1993. Over the 10-year period ended Jan. 31, 2010, his fund has averaged 11.19% a year, while the S&P500 is in negative. Steven Romick has shown his excellent risk management skills in investing strategies, he is one of the few managers that can beat the market in both directions. In 2008 the market was down 37%, his fund was down only 20.6%; and in 2009, his fund gained 29.65%, beating the market by 3.1%.  


  • Consuelo Mack of WealthTrack Interviews Steven Romick

    On this week’s Consuelo sits down with Great Investor, Steven Romick, the founder and portfolio manager of the five star FPA Crescent Fund. Romick’s contrarian views and go anywhere, invest in anything style have put him in the top one percent of all money managers over the last decade and earned him a finalist slot for Morningstar’s new Fund Manager of the Decade Award.

      


  • Steven Romick on Investment Outlook, Heathcare Sector and Aon Corp.

    Steven Romick is the Portfolio Manager for FPA Crescent Fund. He was nominated as one of the candidates for “Manager of the Decade” by MorningStar late last year, together with Bruce Berkowitz and Donald Yacktman. Of course, many of us know that Berkowitz won the tile.

    The nomination was backed by solid performance: For the past decade, during which the general market declined slightly, Crescent Fund grew an average of 10.69% per year. For 4Q09, Crescent Fund increased 5.3% for the fourth quarter, and 28.4% for 2009 and, in doing so, successfully earned back its 2008 losses. In the most recent two-year period of tremendous volatility, Crescent increased 2.0%, while the S&P 500 declined 20%, both returns on a cumulative basis.  


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