Steven Romick (Trades, Portfolio) is the portfolio manager of FPA Crescent Fund. As of Jan. 31, the fund had delivered more than 11% a year on average over the past 10 years. The following are the companies the investor has been buying for at least the last two quarters.
Esterline Technologies Corp. (ESL)
During the fourth quarter, Romick increased his stake by 4.89% and, in the first quarter, again bought shares in the company with an increase of 3.57%. The fund holds 9.67% of outstanding shares in the specialized manufacturing company mainly serving aerospace and defense customers. It designs, manufactures and markets highly engineered products. During the fourth quarter consolidated revenue increased 11.6%, and gross margin as a percentage of sales in the fourth quarter of fiscal 2015 was 32.7% compared with 32.6% in the prior-year period.
The largest shareholder among the gurus is First Pacific Advisors (Trades, Portfolio) with 10.97% of outstanding shares followed by Michael Dell (Trades, Portfolio) with 2.68%, Jim Simons (Trades, Portfolio) with 0.93%, Robert Olstein (Trades, Portfolio) with 0.41% and PRIMECAP Management (Trades, Portfolio) with 0.38%.
American Express Co. (AXP)
During the fourth quarter, the guru increased his stake by 311.96% and, in the first quarter, again bought shares in the company with an increase of 91.10%. The fund holds 0.52% of outstanding shares in the company that, together with its subsidiaries, is a service company providing customers with access to products, insights and experiences that enrich lives and build business success. Diluted earnings per share for the fourth quarter was 89 cents, or $1.23 on an adjusted basis excluding the EG charge, compared to $1.39 a year ago, and consolidated total revenues net of interest expense decreased 8%.
Warren Buffett (Trades, Portfolio) is the company's largest shareholder among the gurus with 15.73% of outstanding shares followed by Barrow, Hanley, Mewhinney & Strauss with 1.9%, Dodge & Cox with 1.78%, Chris Davis (Trades, Portfolio) with 1.59%, First Eagle Investment (Trades, Portfolio) with 1.32%, Ken Fisher (Trades, Portfolio) with 1.22%, Bill Nygren (Trades, Portfolio) with 0.5% and T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.42%.
Bank of America Corp. (BAC)
During the fourth quarter, Romick increased his stake by 0.81% and, in the first quarter, again bought shares in the company with an increase of 33.17%. The fund holds 0.23% of outstanding shares in the company that, through its banking and various nonbanking subsidiaries throughout the U.S. and in selected international markets, provides a diversified range of banking and nonbanking financial services and products. During the first quarter loans in primary lending segments grew 11% from the same quarter of a year before, and deposits increased 6% from first quarter of 2015 to more than $1.2 trillion.
The largest shareholder among the gurus is Dodge & Cox with 1.81% of outstanding shares followed by Barrow, Hanley, Mewhinney & Strauss with 0.82%, HOTCHKIS & WILEY with 0.47%, Fisher with 0.42%, Nygren with 0.34% and Richard Pzena (Trades, Portfolio) with 0.28%.
CIT Group Inc. (CIT)
During the fourth quarter, the guru increased his stake by 9.39% and, in the first quarter, again bought shares in the company with an increase of 112.10%. The fund holds 0.56% of outstanding shares in the company that provides financing, leasing and advisory services principally to middle market companies in industries primarily in North America and equipment financing and leasing solutions to the transportation industry worldwide. Fourth quarter net income was 72 cents per diluted share compared to net income of $1.37 per diluted share for the year-ago quarter.
First Pacific Advisors (Trades, Portfolio) is the company's largest shareholder among the gurus with 5.59% of outstanding shares followed by Lee Ainslie (Trades, Portfolio) with 2.18%, NWQ Managers (Trades, Portfolio) with 2.04%, John Paulson (Trades, Portfolio) with 1.74%, HOTCHKIS & WILEY with 0.72%, George Soros (Trades, Portfolio) 0.69% and Louis Moore Bacon (Trades, Portfolio) with 0.38%.
Cisco Systems Inc. (CSCO)
During the fourth quarter, Romick increased his stake by 0.83% and, in the first quarter, again bought shares in the company with an increase of 7.63%. The fund holds 0.56% of outstanding shares in the company that is engaged in designing, manufacturing and selling of Internet Protocol (IP) based networking products and services related to the communications and information technology (IT) industry and provides services associated with these products and their use. Second-quarter revenue had an increase of 2% year over year, and the company expects 1% to 4% growth year over year for the third-quarter revenue.
The largest shareholder among the gurus is Dodge & Cox with 1.35% of outstanding shares followed by Donald Yacktman (Trades, Portfolio) with 0.62%, Jeremy Grantham (Trades, Portfolio) with 0.6%, PRIMECAP Management (Trades, Portfolio) with 0.5%, First Pacific Advisors (Trades, Portfolio) with 0.33%, Yacktman Fund (Trades, Portfolio) with 0.32% and Fisher with 0.31%.
