Steven Romick

Steven Romick

Last Update: 07-07-2015
Related: First Pacific Advisors
Robert Rodriguez

Number of Stocks: 64
Number of New Stocks: 1

Total Value: $10,392 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' s Profile & Performance

Profile

Steven Romick is the portfolio manager of FPA Crescent Fund. As of Jan. 31, the fund has delivered more than 11% a year in average over the past 10 years. His fund has about $2.8 billion under management

Web Page:http://www.fpafunds.com/crescentfund.asp

Investing Philosophy

Mr. Romick's portfolio consists of equity positions of both long and short. He also has sizeable positions in short term bond and cash. He seeks value in all parts of a company's capital structure, including common and preferred stocks, as well as corporate and convertible bonds. The manager invests in securities "that the consensus does not wish to own," searching for stocks and convertible bonds that reflect low price/earnings ratios (P/Es) and trade at discounts to private market value. Corporate bonds with yields substantially higher than those of government securities are also considered.

During his shareholder conference call, Steven Romick of FPA Crescent Fund shared what matrices he uses to measure the valuations of stocks and bonds. Not surprisingly, as a long term investor, Steven Romick looks at long term market valuation parameter Shiller P/E for market valuations. This is a screenshot of his Schiller P/E page:



This is clearly similar to what GuruFocus Shiller P/E page looks like. Shiller P/E ratio is updated daily. Today it sits at 20.1, which is 22.6% higher than the historical mean of 16.4, implying a future market return of 3.8% a year.


But Steven Romick is seeing opportunities in large cap high quality companies. He thinks that those companies have higher return on capital, and with relatively low valuations.


With bonds, Steven Romick looks the spread between Merrill Lynch High Yield Index vs. average of 5 & 10 year US Treasury yields. His slide is below:



Currently he is not yet excited with bonds, as he generally looks for better yield.



By the way, in the conference call, Steven Romick mentioned that a few years ago he was a one-man shop. Today he has a team of 10 analysts. A disclosure here, when he was a one-man shop, Steven Romick was a Premium Member of GuruFocus.

Historical Allocation of Stock, Bonds, Cash

Total Holding History

Performance of FPA Crescent Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
20146.6413.69-7.0
201321.9532.39-10.4
201210.3316-5.7
3-Year Cumulative43.5 (12.8%/year)74.6 (20.4%/year)-31.1 (-7.6%/year)
20113.022.110.9
201012.0415.06-3.0
5-Year Cumulative65.6 (10.6%/year)105.1 (15.5%/year)-39.5 (-4.9%/year)
200928.3726.461.9
2008-20.55-3716.5
20076.845.491.4
200612.4315.79-3.4
200510.834.915.9
10-Year Cumulative124.9 (8.4%/year)109.4 (7.7%/year)15.5 (0.7%/year)
200410.2110.88-0.7
200326.1528.68-2.5
20023.71-22.125.8
200136.14-11.8948.0
20003.59-9.112.7
15-Year Cumulative357.2 (10.7%/year)86.4 (4.2%/year)270.8 (6.5%/year)
1999-6.2821.04-27.3
19982.7928.58-25.8
199721.9533.36-11.4
199622.8822.96-0.1
199526.0437.58-11.5
20-Year Cumulative732 (11.2%/year)554.6 (9.8%/year)177.4 (1.4%/year)
19944.221.322.9

Top Ranked Articles

GuruFocus.com Interview with Steve Romick, Portfolio Manager of FPA Crescent
GuruFocus readers recently got to ask Steve Romick, FPA Crescent portfolio manager, their questions about investing. Romick's mutual fund FPA Crescent Fund is up 19.76% over the last year and has delivered an annualized return exceeding 9% over the last decade. His fund is slightly different from most mutual funds in that it is diversified across a different basket of asset classes to provide equity rates of return with less risk. Read more...
Why Steven Romick Thinks CVS, WMT and MSFT Are Cheap
Steve Romick is the portfolio manager of FPA Crescent Fund he founded in 1993. The firm states in its “Contrarian Policy Statement” that they are “absolute value investors” and they “seek the out-of-favor, unloved or misunderstood.” Romick has made a 10-year average return of over 11% which places him in the top 1% of money managers. He is the only fund manager whose shorts GuruFocus tracks. Read more...
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. Read more...
What Parameters Does FPA Crescent Fund's Steven Romick Look at for Market Valuations?
During his latest shareholder conference call, Steven Romick of FPA Crescent Fund shared what matrices he uses to measure the valuations of stocks and bonds. Not surprisingly, as a long term investor, Steven Romick looks at long term market valuation parameter Shiller P/E for market valuations. This is a screenshot of his Schiller P/E page: Read more...
Top 5 conviction picks from Steven Romick
Romick joined FPA Crescent Fund in 1996. He is the portfolio manager of FPA Crescent Fund and the Contrarian Value Strategy. He is also a research analyst for FPA Capital Fund and the FPA Small/Mid-Cap Absolute Value Strategy and FPA New Income and the FPA Absolute Fixed Income Strategy. Prior to joining FPA Crescent Fund, Steven was Chairman of Crescent Management and a consulting security analyst for Kaplan, Nathan & Co. Read more...
» More Steven Romick Articles

Commentaries and Stories

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Steve Romick: Interview With Barron's Steven Romick - Steve Romick: Interview With Barron's
Steven Romick of FPA Crescent Fund did a video interview with Barron's where he discussed various topics with the interviewer. Romick said that he sees value in Oracle (NYSE:ORCL) and Microsoft (NASDAQ:MSFT). He went on to discuss why he believes investors should avoid energy stock and how cheap Russian equities are. More...

STEVE ROMNICK,VALUE INVESTING,BARRON,


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Steve Romick Has 40% Of His Fund In Cash – See What He Is Willing To Buy
If you are a fund manager who is willing to sit with 40% of your fund in cash, chances are that you are only buying high quality stocks. More...

Steven Romick,video


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Steven Romick's Undervalued Stocks Trading With Low P/E Ratio Steven Romick,James Barrow,First Pacific Advisors, - Steven Romick's Undervalued Stocks Trading With Low P/E Ratio
Steven Romick (Trades, Portfolio) is the portfolio manager of FPA Crescent Fund. As of Jan. 31, the fund has delivered more than 11% a year in average over the past 10 years. His fund has about $10 billion under management and the following are the stocks he owns that are trading with a very low P/E ratio and that are undervalued according to the DCF calculator. More...

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Steven Romick's FPA Crescent Fund Second Quarter 2015 Commentary
Dear Shareholders: More...

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JPMorgan Chase’s Earnings Results Meet Expectations for the Second Quarter
JPMorgan Chase (NYSE:JPM) reported its earnings results for the second quarter on July 14. The company reported total revenue of $24.5 billion and net income of $6.3 billion resulting in earnings per share of $1.54. The report was on par with analysts’ expectations. Earnings per share beat estimates by $0.10. Revenue was basically on target with analysts’ average estimate of $24.5 billion. More...

FINANCIAL SERVICES


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GE, Union Pacific Among Most Widely Bought Industrial Stocks Steven Romick,First Pacific Advisors,Bill Nygren,D - GE, Union Pacific Among Most Widely Bought Industrial Stocks
The industrial sector has been up 10.83% since the beginning of the year, according to Morningstar’s sector returns. And as the economy picks up momentum, the performance of stocks related to homebuilding, construction, and manufacturing have the potential to improve. More...

GENERAL ELECTRIC, GE, UNION PACIFIC, INDUSTRIAL


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Steven Romick Adds to Eight Stakes in Second Quarter Steven Romick - Steven Romick Adds To Eight Stakes In Second Quarter
Steven Romick (Trades, Portfolio) is the portfolio manager of FPA Crescent Fund, which has averaged more than 11% in returns for the last decade. Its returns in 2014 were in single digits (6.64%), but it returned 21.95% in 2013 and 10.33% in 2012. More...

Steven Romick


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Steven Romick Sells Stakes in 4 Companies
Steven Romick (Trades, Portfolio) is the portfolio manager of FPA Crescent Fund. The Absolute Fixed Income Strategy aims to generate a positive absolute return through a combination of income and capital appreciation. To achieve this goal, they employ a total return strategy using investments in fixed income securities that focus on income, appreciation and capital preservation. More...

Steven Romick


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Steve Romick: Waiting for Another Bite at the Apple Steven Romick - Steve Romick: Waiting For Another Bite At The Apple
With little margin of safety available in today's market, the Gold-rated FPA Crescent manager is waiting for better opportunities. More...

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Steven Romick Speech to CFA Society of Chicago - 'Don’t be Surprised'
I’m reminded of a gentleman who discovers a genie in a bottle. Granted one wish only – apparently even genies have pricing power – the man asks for peace in the Middle East. The genie backs away and says, “That’s way too difficult. Give me something easier.” The man ponders his options and asks the genie instead, to help him pick a good mutual fund. The genie quickly responds, “Let me get to work on the Middle East.” More...

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Steven Romick's FPA Crescent Fund First Quarter 2015 Commentary
FPA Crescent Fund More...

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Steven Romick FPA Funds Commentary - The Importance of Full Market Cycle Returns Steven Romick - Steven Romick FPA Funds Commentary - The Importance Of Full Market Cycle Returns
By Ryan Leggio and Steven Romick (Trades, Portfolio) More...

Steven Romick, FPA Funds


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Bank of America: Following Mohnish Pabrai's Recommendation on Banks
Bank of America Corporation (NYSE:BAC) does not require a great introduction. The bank provides banking and financial products and services for individual consumers, small and middle market businesses, institutional investors, large corporations, and governments worldwide. More...

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Steven Romick Buys 1 New Stock in First Quarter, Adds to 10 More Steven Romick,Charlie Munger - Steven Romick Buys 1 New Stock In First Quarter, Adds To 10 More
Steven Romick (Trades, Portfolio) manages the Crescent Fund at First Pacific Advisers, a company with $33 billion in assets. More...

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A Look At Steven Romick's Investment in Yahoo! Steven Romick - A Look At Steven Romick's Investment In Yahoo!
Steven Romick (Trades, Portfolio) is the portfolio manager of FPA Crescent Fund. As of Jan. 31, the fund has delivered more than 11% a year in average returns over the past 10 years. His fund has about $2.8 billion under management. Romick's portfolio consists of equity positions of both long and short. He also has sizeable positions in short term bond and cash. He seeks value in all parts of a company's capital structure, including common and preferred stocks, as well as corporate and convertible bonds. The manager invests in securities "that the consensus does not wish to own," searching for stocks and convertible bonds that reflect low price/earnings ratios (P/Es) and trade at discounts to private market value. Corporate bonds with yields substantially higher than those of government securities are also considered. More...

LONG, INTERNET, Yahoo


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Analyzing Steven Romick's New Buys: Express Scripts (ESRX) Steven Romick - Analyzing Steven Romick's New Buys: Express Scripts (ESRX)
Steven Romick (Trades, Portfolio) is the portfolio manager of FPA Crescent Fund. As of Jan. 31, the fund has delivered more than 11% a year in average over the past 10 years. His fund has about $2.8 billion under management. Romick's portfolio consists of equity positions of both long and short. He also has sizeable positions in short term bond and cash. He seeks value in all parts of a company's capital structure, including common and preferred stocks, as well as corporate and convertible bonds. The manager invests in securities "that the consensus does not wish to own," searching for stocks and convertible bonds that reflect low price/earnings ratios (P/Es) and trade at discounts to private market value. Corporate bonds with yields substantially higher than those of government securities are also considered. More...

LONG, Steven Romick, Express Scripts


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Steven Romick Comments on United Technologies Corp
UTX (UTX) is an example of such a business. As part of our research process, we look at a number of companies and industries each year. As you can tell from the fund’s relatively low turnover, most of that research does not result in a purchase or sale. We regularly nix potential investments because we find them too expensive or too difficult to understand. When we pass on investments solely due to valuation, we are left with “on deck” opportunities. These are companies that the group has thoroughly researched but decided that the price wasn’t attractive enough to warrant purchase. We keep track of these companies and patiently wait for the day when they become available at a price that represents good, long-term value. UTX was one such opportunity that presented itself during the short-lived market dip last October. More...

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Steven Romick's FPA Crescent Fund Fourth Quarter 2014 Commentary
You should consider the Fund’s investment objectives, risks, and charges and expenses carefully before you invest. The Prospectus details the Fund's objective and policies, sales charges, and other matters of interest to the prospective investor. Please read this Prospectus carefully before investing. The Prospectus may be obtained by visiting the website at www.fpafunds.com, by email at [email protected], toll-free by calling 1- 800-982-4372 or by contacting the Fund in writing. More...

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Fourth Quarter 2014 Crescent Fund Update
Activity: More...

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Steven Romick's International Buys in Q4 Steven Romick - Steven Romick's International Buys In Q4
During the fourth quarter, Steven Romick (Trades, Portfolio) of FPA Crescent Fund purchased four new international stocks, bringing the total number of international positions to 19. More...

STEVEN ROMICK, FPA CRESCENT FUND


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User Comments

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

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