Steven Romick

Steven Romick

Last Update: 2014-04-16
Related: First Pacific Advisors
Robert Rodriguez

Number of Stocks: 53
Number of New Stocks: 1

Total Value: $8,552 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 (%)
201321.9531.55-9.6
201210.3315.4-5.1
20113.022.080.9
3-Year Cumulative38.6 (11.5%/year)55 (15.7%/year)-16.4 (-4.2%/year)
201012.0415.06-3.0
200928.3726.461.9
5-Year Cumulative99.4 (14.8%/year)125.5 (17.7%/year)-26.1 (-2.9%/year)
2008-20.55-3716.5
20076.845.611.2
200612.4315.79-3.4
200510.834.915.9
200410.2112-1.8
10-Year Cumulative132.4 (8.8%/year)104.1 (7.4%/year)28.3 (1.4%/year)
200326.1528.7-2.6
20023.71-22.125.8
200136.14-11.948.0
20003.59-9.112.7
1999-6.2821-27.3
15-Year Cumulative301.9 (9.7%/year)98.3 (4.7%/year)203.6 (5%/year)
19982.7928.6-25.8
199721.9533.4-11.5
199622.8823-0.1
199526.0437.6-11.6
19944.221.32.9
20-Year Cumulative713.1 (11%/year)483.2 (9.2%/year)229.9 (1.8%/year)

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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Steven Romick's Top Five Highlight Technology Sector Steven Romick - Steven Romick's Top Five Highlight Technology Sector
Steven Romick is the portfolio manager of First Pacific Advisors Crescent Fund. The fund’s investment objective and strategy reports that they “seek to generate equity-like returns over the long-term, take less risk than the market and avoid permanent impairment of capital.” More...

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Investor Steven Romick's Top 5 Increases of First Quarter Steven Romick - Investor Steven Romick's Top 5 Increases Of First Quarter
FPA Crescent Fund’s Steven Romick (Trades, Portfolio) in the first quarter preferred to have cash ready to put to work in case volatility hit the markets, rather than buy new stocks. He believes a period of volatility – and the low-priced opportunities it would bring with it – could occur soon. More...

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Weekly Guru Bargains Highlights: VOD
According to GuruFocus updates, these stocks have declined the most since Gurus have bought. More...

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Weekly Guru Bargains Highlights: VOD, LBTYA, CEO
According to GuruFocus updates, these stocks have declined the most since Gurus have bought. More...

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Weekly Guru Bargains Highlights: PBR.A, VOD, LBTYA
According to GuruFocus updates, these stocks have declined the most since Gurus have bought. More...

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Steven Romick's Q4 Commentary for FPA Crescent Fund
Dear Shareholders: More...

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Beacon Pointe's 2013 Spring Investment Forum with Steven Romick of FPA Capital
More...

STEVEN ROMICK, FPA CAPITAL


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Steven Romick Buys 7 Stocks in Q4 Steven Romick - Steven Romick Buys 7 Stocks In Q4
Steven Romick (Trades, Portfolio), of the FPA Crescent Fund, gradually increased his cash position over the first three quarters of 2013 as the market rose. From the end of 2012 to the end of the third quarter, Romick’s long equity exposure declined to 54.2% from 63.8%, and liquidity increased to 38.4%. He bought no new stocks during the third quarter. More...

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Steven Romick’s Top Five Q4 Holdings Steven Romick - Steven Romick’s Top Five Q4 Holdings
Steven Romick is the portfolio manager of First Pacific Advisors Crescent Fund. The fund’s investment objective and strategy reports that they “seek to generate equity-like returns over the long-term, take less risk than the market and avoid permanent impairment of capital.” More...

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Asset Allocation of Our Top Gurus - Are Gurus Moving Into Cash? Warren Buffett,Steven Romick - Asset Allocation Of Our Top Gurus - Are Gurus Moving Into Cash?
In 2013, the year-to-date return for the stock market benchmark S&P 500 is 27.02%. The market hit historical record highs continually for months. More...

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Steven Romick: We have found ourselves with little alternative but to make some sales Steven Romick - Steven Romick: We Have Found Ourselves With Little Alternative But To Make Some Sales
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Steven Romick's FPA Crescent Fund Q3 Commentary
We hope that investors will find FPA commentaries helpful to understand application of the same investment discipline in various markets, and can refer to particular items that interest them. More...

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Steven Romick of the FPA Crescent Fund’s Top Five Stocks Steven Romick - Steven Romick Of The FPA Crescent Fund’s Top Five Stocks
Steven Romick is the portfolio manager of First Pacific Advisors Crescent Fund. The fund’s investment objective and strategy reports that they “seek to generate equity-like returns over the long-term, take less risk than the market and avoid permanent impairment of capital.” More...

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Steven Romick’s Third Quarter Sells at FPA Crescent Fund Steven Romick - Steven Romick’s Third Quarter Sells At FPA Crescent Fund
The third quarter portfolio update of the FPA Crescent Fund, led by Guru Steven Romick of First Pacific Advisors, lists 53 stocks. The fund’s total value is $6.9 billion, with a quarter-over-quarter turnover of 4%. The portfolio is currently weighted with top three sectors: financial services at 19.6%, consumer defensive at 17% and healthcare at 16%. Steven Romick has averaged a return of 16.52% over 12 months; First Pacific Advisors is averaging 18.84%. More...

MEDICAL CARE, HOME IMPROVEMENT STORES, GROCERY STORES, HEALTH CARE PLANS


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Steven Romick Makes Major Increases to 3 Holdings Steven Romick - Steven Romick Makes Major Increases To 3 Holdings
With the S&P 500 index this week surpassing a 20% gain for the year, investors focused on price are making notably limited new purchases. One such value investor, Steven Romick, reported today buying no new stocks during the third quarter, though he made increases to existing holdings. More...

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FPA Crescent Fund Q2 2013 Webcast Transcript
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Steven Romick Comments on Omnicare
Ultimately, we pay more attention to the underlying financial performance of the companies in our investment portfolio than we do their stock charts and in one instance, Omnicare (OCR), the largest supplier of pharmaceuticals to patients in nursing homes, delivered in spades. New management came in several years ago and began executing on a business plan that revolved around basic blocking and tackling to improve performance. While the engineer of the turnaround, John Figueroa, has handed off the plan to his successor, the momentum remained intact under the present CEO, John Workman. The company has lowered costs, reduced customer churn, won new accounts and essentially built the best mousetrap in the institutional pharmacy space. The net result is that all of the aforementioned improvements in aggregate have manifested themselves in the form of higher and more consistent earnings. Those achievements and the belief that the company's future continues to look bright are reflected in a stock price that has more than doubled from our original cost. More...

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FPA Crescent Fund Buys CareFusion, Oracle, Health Net, Sells Omnicare, Travelers, Ensco
FPA Crescent Fund’s Steven Romick reported the fund’s second quarter portfolio. He buys CareFusion Corp, Oracle Corporation, Health Net Inc, Occidental Petroleum Corporation, ARRIS Group Inc, , sells Omnicare Inc, Travelers Companies, Inc., Ensco PLC, PetSmart Inc., Xerox Corporation, CIT Group Inc, Bank of New York Mellon Corp, Johnson & Johnson, , Lowe's Companies Inc., American Greetings Corporation during the 3-months ended 06/30/2013, according to the most recent filings of his investment company, FPA Crescent Fund. More...

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Steven Romick’s FPA Crescent Sells Three
In the recently updated portfolio of Steven Romick, FPA Crescent Fund (FPACX) lists 57 stocks, four of them new, with a total value of $6.8 billion and a quarter-over-quarter turnover of 2%. Here’s the latest report on FPA Crescent Fund’s sell outs as of the second quarter 2013. Read more about Steven Romick’s second quarter increases and two new stocks here. More...

PROPERTY & CASUALTY, SPECIALTY RETAIL, OIL & GAS DRILLING


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Steven Romick's Second Quarter Increases
Steven Romick of the FPA Crescent Fund increased his holdings in four companies in the second quarter. Romick’s Fund is valued at $6.801 billion and is made up of 57 stocks. Romick also purchased four new stocks during the most recent quarter. More...

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