Steven Romick

Steven Romick

Last Update: 01-11-2016
Related: First Pacific Advisors
Robert Rodriguez

Number of Stocks: 54
Number of New Stocks: 0

Total Value: $9,513 Mil
Q/Q Turnover: 8%

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

Market Valuations and Expected Returns Jan. 2016 Monthly market commentary from GuruFocus
The market had its worst January in many years. This has generated quite some fear in the market and has prompted Howard Marks (Trades, Portfolio) written two memos in January: On the Coach and What Does the Market Know? We strongly recommend you to read both if you haven’t done so. Read more...
Steven Romick Comments on Oracle Guru stock highlight
We had some puts and takes that drove 2015’s performance. Microsoft and Alphabet (formerly Google) performed quite well but Oracle lagged. Oracle (NYSE:ORCL) continued to transition its business to the cloud last year but it has been proceeding more slowly than investors or the company expected. Concern about the transition and weak software license sales led to the stock’s decline. Given the undemanding valuation and high level of recurring revenue, we used a drop in the share price to increase our position.
Read more...
Steven Romick Comments on Alcoa Guru stock highlight
Weak aluminum prices and inventory adjustments in the aerospace supply chain negatively impacted Alcoa (NYSE:AA)’s profitability and its stock price in 2015. We support the company’s decision to separate its highly engineered, value-added aerospace business from its commodity aluminum operations. As the price has declined in the last year, we have doubled the number of shares we own and are hopeful that the pending spin-off will create clarity and value for the enterprise.
Read more...
Steven Romick Comments on Joy Global Guru stock highlight
Joy Global (NYSE:JOY) was with hindsight an outright mistake, a poor investment decision that we wish we could take back. When analyzing the situation, we gave too much weight to the company’s strong market position and attractive aftermarket sales profile. We failed to appreciate the degree to which the coal market had changed. Many regions in which Joy has a particularly strong competitive position are likely to produce significantly less coal going forward. This has resulted in a permanent impairment to our position in Joy. Realizing our mistake, we have reduced the position.
Read more...
Steven Romick Reduces 7 Stakes in 4th Quarter Guru sells more than one-fifth of Microsoft holding
Guru Steven Romick (Trades, Portfolio), portfolio manager of FPA Crescent Fund, reduced seven stakes in his portfolio in the fourth quarter. Read more...
» More Steven Romick Articles

Commentaries and Stories

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Market Valuations and Expected Returns Jan. 2016 Monthly market commentary from GuruFocus Howard Marks,Steven Romick - Market Valuations And Expected Returns Jan. 2016
The market had its worst January in many years. This has generated quite some fear in the market and has prompted Howard Marks (Trades, Portfolio) written two memos in January: On the Coach and What Does the Market Know? We strongly recommend you to read both if you haven’t done so. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Steven Romick Comments on Joy Global Guru stock highlight
Joy Global (NYSE:JOY) was with hindsight an outright mistake, a poor investment decision that we wish we could take back. When analyzing the situation, we gave too much weight to the company’s strong market position and attractive aftermarket sales profile. We failed to appreciate the degree to which the coal market had changed. Many regions in which Joy has a particularly strong competitive position are likely to produce significantly less coal going forward. This has resulted in a permanent impairment to our position in Joy. Realizing our mistake, we have reduced the position. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Steven Romick Comments on Alcoa Guru stock highlight
Weak aluminum prices and inventory adjustments in the aerospace supply chain negatively impacted Alcoa (NYSE:AA)’s profitability and its stock price in 2015. We support the company’s decision to separate its highly engineered, value-added aerospace business from its commodity aluminum operations. As the price has declined in the last year, we have doubled the number of shares we own and are hopeful that the pending spin-off will create clarity and value for the enterprise. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Steven Romick Comments on Oracle Guru stock highlight
We had some puts and takes that drove 2015’s performance. Microsoft and Alphabet (formerly Google) performed quite well but Oracle lagged. Oracle (NYSE:ORCL) continued to transition its business to the cloud last year but it has been proceeding more slowly than investors or the company expected. Concern about the transition and weak software license sales led to the stock’s decline. Given the undemanding valuation and high level of recurring revenue, we used a drop in the share price to increase our position. More...

  • Currently 5.00/5

Rating: 5.0/5 (2 votes)

Steven Romick's FPA Crescent Fund 4th Quarter 2015 Commentary Romick discusses the market and holdings Steven Romick - Steven Romick's FPA Crescent Fund 4th Quarter 2015 Commentary
Dear Shareholders: More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Steven Romick Reduces 7 Stakes in 4th Quarter Guru sells more than one-fifth of Microsoft holding Steven Romick - Steven Romick Reduces 7 Stakes In 4th Quarter
Guru Steven Romick (Trades, Portfolio), portfolio manager of FPA Crescent Fund, reduced seven stakes in his portfolio in the fourth quarter. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Steven Romick Sells Microsoft, Walgreens, CVS FPA portfolio manager trims Microsoft stake by 20% Steven Romick - Steven Romick Sells Microsoft, Walgreens, CVS
Steven Romick (Trades, Portfolio) sold many stocks during the fourth quarter. He is the portfolio manager of the FPA Crescent Fund and the following are the most weighted sales during the last quarter of 2015. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Crescent Fund's Romick Increases 8 Portfolio Positions in Q4 Investor continued to build positions he also increased in 3rd quarter Steven Romick - Crescent Fund's Romick Increases 8 Portfolio Positions In Q4
Though FPA Crescent Fund manager Steven Romick (Trades, Portfolio) took advantage of a bumpy third quarter market to buy five attractive stocks at low-priced windows, he found nothing new to acquire in a less volatile fourth quarter. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Romick Gains 75% Return on Baytex Energy Romick bought to cover the holding in the 3rd quarter Steven Romick - Romick Gains 75% Return On Baytex Energy
Contrarian defensive investor Steven Romick serves as the portfolio manager of the award winning FPA Crescent Fund. He joined FPA Funds in 1996 after graduating with a bachelor's degree in education from Northwestern University. In the second quarter of 2013, Romick shorted Baytex Energy Corp. (TSX:BTE) at an average price of C$39.29. In the third quarter of 2015, Romick bought to cover his position at C$9.91, profiting a 75% return. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Health Care Stocks Play Prominent Roles in Steven Romick's Transactions Guru reduces stakes in CVS Health, Express Scripts, Thermo Fisher in 3rd quarter Steven Romick - Health Care Stocks Play Prominent Roles In Steven Romick's Transactions
The health care sector occupies a low position in Steven Romick (Trades, Portfolio)’s sector weightings, but those companies were among his most prominent third-quarter trades. More...

  • Currently 4.00/5

Rating: 4.0/5 (2 votes)

Romick Maintains Conviction in 3 Stocks With Declining Prices FPA Crescent Fund raises stake in largest holding Oracle Steven Romick - Romick Maintains Conviction In 3 Stocks With Declining Prices
Steven Romick (Trades, Portfolio) joined FPA Funds in 1996 and runs the FPA Crescent Fund, which today manages more than $18 billion in assets. During the third quarter, Romick reiterated his conviction in several holdings that have seen prices decline over the past year, including the three below. More...

STEVEN ROMICK, ORACLE


  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Steven Romick Adds Esterline, American Express to FPA Crescent A closer look at 3 stocks added to the noted value fund Steven Romick - Steven Romick Adds Esterline, American Express To FPA Crescent
In the third quarter of 2015, guru Steven Romick bought three new holdings, adding to his award winning FPA Crescent Fund. Romick bought 2,636,450 shares of Esterline Technologies (ESL), 642,400 shares of American Express Co. (AXP), and 1,012,740 shares of Halliburton Co. (HAL). More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Steve Romick's 3rd Quarter Investor Presentation Webcast details company's performance Steven Romick - Steve Romick's 3rd Quarter Investor Presentation
  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

FPA Crescent Fund – Third Quarter Investor Call Transcript Steve Romick participates in webcast Steven Romick - FPA Crescent Fund – Third Quarter Investor Call Transcript
  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Steven Romick's FPA Crescent Fund Third Quarter 2015 Commentary Romick discusses a down quarter in which value investing became temporarily out of favor Steven Romick - Steven Romick's FPA Crescent Fund Third Quarter 2015 Commentary
Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. This data represents past performance and investors should understand that investment returns and principal values fluctuate, so that when you redeem your investment it may be worth more or less than its original cost. Current month-end performance data may be obtained by calling toll-free, 1-800-982-4372. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Steven Romick Sells CVS, Buys United Technologies Express Script, Esterline Technologies and Thermo Fisher Scientific among his largest trades Steven Romick,Pioneer Investments,First Pacific Ad - Steven Romick Sells CVS, Buys United Technologies
Steven Romick (Trades, Portfolio) is the portfolio manager of FPA Crescent Fund, a Los Angeles-based money management firm practicing a disciplined approach to value investing, prudently seeking superior long-term returns while maintaining a focus on capital preservation. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Steven Romick Buys 3 New Stocks in Q3 Volatility provided chance to buy more than 1 stock for the first time since 2014 Steven Romick - Steven Romick Buys 3 New Stocks In Q3
Steven Romick (Trades, Portfolio), president of the $19.6 billion FPA Crescent Fund (FPACX), bought three new stocks in the third quarter, he disclosed Thursday. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

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,


  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

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


Add Notes, Comments

If you want to ask a question or report a bug, please create a support ticket.

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?

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK