Should we pay attention to Mr. Rodriguez? I think the answer is likely yes given the following:
“His stock fund, FPA Capital (FPPTX), has returned 15% annually over the past 25 years, beating every single diversified equity fund, according to Lipper. His bond fund, FPA New Income (FPNIX), has never posted an annual loss.”
“You have to see it from Bob Rodriguez's perspective. Twice he has spotted an approaching storm. Twice he has warned the world. Twice he has been pooh-poohed and seen investors abandon the two mutual funds he managed. Twice he has taken steps to shield his clients from the coming crisis.And twice — first with Internet stocks in the 1990s, and then with the financial crisis of 2008 — Rodriguez has been right.”
25 years of outperformance and avoiding the two major blowups during that period. What more would he need to demonstrate before we pay attention to his opinion?
To cut to the chase, here is his current positioning:
“So FPA's managers, guided by Rodriguez, are battening down again, trimming risk. FPA Capital now has 30% of its portfolio in cash and 38% in energy stocks because he believes the world's oil supply is declining. Still, even in that sector, he doesn't see many opportunities. (Forget other sectors.) He refuses to buy most bonds or long-term government debt. His restraint has rankled some investors: FPA New Income has begun to shrink again, and a few FPA Capital clients are grumbling.”
And here is the entire article:
“He's the mutual fund manager with the best record in the past quarter-century, and he correctly predicted the last two stock market crashes. So why aren't people listening when Bob Rodriguez says another calamity is looming?
You have to see it from Bob Rodriguez's perspective. Twice he has spotted an approaching storm. Twice he has warned the world. Twice he has been pooh-poohed and seen investors abandon the two mutual funds he managed. Twice he has taken steps to shield his clients from the coming crisis.
And twice — first with Internet stocks in the 1990s, and then with the financial crisis of 2008 — Rodriguez has been right.
As the latter cataclysm unfolded, the man once mocked for missing out on the hottest markets of his lifetime was anointed as a seer. The Wall Street Journal pronounced Rodriguez one of the "doomsayers who got it right." Barron's labeled him a "prophet." MarketWatch described him as one of the "four horsemen of the market."
Rodriguez, the CEO of $16 billion money management firm First Pacific Advisors, isn't the type to be satisfied with being right (though he's certainly not above that particular pleasure). He's seemingly compelled to share the hard truth. It's as if he has this terrible gift, and with that comes the obligation to tell the world when calamity is on the horizon.
So when he was invited to address more than 1,000 mutual fund managers at a conference held by Morningstar in May 2009 -- just when it looked as if the crisis had finally abated -- Rodriguez gave himself only a brief pat on the back. Then he launched into a tirade, ripping into all of the parties involved in the meltdown. Fund managers, he said, had "stunk." The federal stimulus programs were foolish and shortsighted, and regulators had lost all credibility. Worst of all, he said, was the ballooning U.S. debt, which had prompted him to stop buying long-term bonds from the "irresponsible and fiscally inept government."
He continued in that fiery vein for almost an hour. When he was done, he stared out into an awkward and complete silence. Then it came: a thunderous standing ovation from the very fund managers he had just excoriated.”
For remainder of the article: http://finance.fortune.cnn.com/2011/06/06/bob-rodriguez-the-man-who-sees-disaster/?iid=HP_LN
“His stock fund, FPA Capital (FPPTX), has returned 15% annually over the past 25 years, beating every single diversified equity fund, according to Lipper. His bond fund, FPA New Income (FPNIX), has never posted an annual loss.”
“You have to see it from Bob Rodriguez's perspective. Twice he has spotted an approaching storm. Twice he has warned the world. Twice he has been pooh-poohed and seen investors abandon the two mutual funds he managed. Twice he has taken steps to shield his clients from the coming crisis.And twice — first with Internet stocks in the 1990s, and then with the financial crisis of 2008 — Rodriguez has been right.”
25 years of outperformance and avoiding the two major blowups during that period. What more would he need to demonstrate before we pay attention to his opinion?
To cut to the chase, here is his current positioning:
“So FPA's managers, guided by Rodriguez, are battening down again, trimming risk. FPA Capital now has 30% of its portfolio in cash and 38% in energy stocks because he believes the world's oil supply is declining. Still, even in that sector, he doesn't see many opportunities. (Forget other sectors.) He refuses to buy most bonds or long-term government debt. His restraint has rankled some investors: FPA New Income has begun to shrink again, and a few FPA Capital clients are grumbling.”
And here is the entire article:
“He's the mutual fund manager with the best record in the past quarter-century, and he correctly predicted the last two stock market crashes. So why aren't people listening when Bob Rodriguez says another calamity is looming?
You have to see it from Bob Rodriguez's perspective. Twice he has spotted an approaching storm. Twice he has warned the world. Twice he has been pooh-poohed and seen investors abandon the two mutual funds he managed. Twice he has taken steps to shield his clients from the coming crisis.
And twice — first with Internet stocks in the 1990s, and then with the financial crisis of 2008 — Rodriguez has been right.
As the latter cataclysm unfolded, the man once mocked for missing out on the hottest markets of his lifetime was anointed as a seer. The Wall Street Journal pronounced Rodriguez one of the "doomsayers who got it right." Barron's labeled him a "prophet." MarketWatch described him as one of the "four horsemen of the market."
Rodriguez, the CEO of $16 billion money management firm First Pacific Advisors, isn't the type to be satisfied with being right (though he's certainly not above that particular pleasure). He's seemingly compelled to share the hard truth. It's as if he has this terrible gift, and with that comes the obligation to tell the world when calamity is on the horizon.
So when he was invited to address more than 1,000 mutual fund managers at a conference held by Morningstar in May 2009 -- just when it looked as if the crisis had finally abated -- Rodriguez gave himself only a brief pat on the back. Then he launched into a tirade, ripping into all of the parties involved in the meltdown. Fund managers, he said, had "stunk." The federal stimulus programs were foolish and shortsighted, and regulators had lost all credibility. Worst of all, he said, was the ballooning U.S. debt, which had prompted him to stop buying long-term bonds from the "irresponsible and fiscally inept government."
He continued in that fiery vein for almost an hour. When he was done, he stared out into an awkward and complete silence. Then it came: a thunderous standing ovation from the very fund managers he had just excoriated.”
For remainder of the article: http://finance.fortune.cnn.com/2011/06/06/bob-rodriguez-the-man-who-sees-disaster/?iid=HP_LN
