Steven Romick

Steven Romick

Last Update: 04-12-2016
Related: First Pacific Advisors
Robert Rodriguez

Number of Stocks: 50
Number of New Stocks: 1

Total Value: $9,436 Mil
Q/Q Turnover: 11%

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 (%)
2015-2.061.19-3.2
20146.6413.69-7.0
201321.9532.39-10.4
3-Year Cumulative27.4 (8.4%/year)52.3 (15.1%/year)-24.9 (-6.7%/year)
201210.3316-5.7
20113.022.110.9
5-Year Cumulative44.8 (7.7%/year)80.4 (12.5%/year)-35.6 (-4.8%/year)
201012.0415.06-3.0
200928.3726.461.9
2008-20.55-3716.5
20076.845.491.4
200612.4315.79-3.4
10-Year Cumulative98.7 (7.1%/year)102 (7.3%/year)-3.3 (-0.2%/year)
200510.834.915.9
200410.2110.88-0.7
200326.1528.68-2.5
20023.71-22.125.8
200136.14-11.8948.0
15-Year Cumulative332.3 (10.3%/year)107.5 (5%/year)224.8 (5.3%/year)
20003.59-9.112.7
1999-6.2821.04-27.3
19982.7928.58-25.8
199721.9533.36-11.4
199622.8822.96-0.1
20-Year Cumulative546.5 (9.8%/year)381.4 (8.2%/year)165.1 (1.6%/year)
199526.0437.58-11.5
19944.221.322.9

Top Ranked Articles

Steven Romick Keeps On Buying Cisco, American Express Stocks guru has continued to buy since the 4th quarter
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. Read more...
Steven Romick Adds to Stake in Alcoa Weak aluminum prices are likely to have influenced guru
Guru Steven Romick added 6,932,590 shares to his stake in Alcoa Inc. (NYSE:AA) in the first quarter. Read more...
Donald Yacktman Reduces Stake in Oracle Oracle faces stiff competition in industry
Donald Yacktman (Trades, Portfolio) founded Yacktman Asset Management in 1992. Prior to this, he served as a senior portfolio manager at Selected Financial Services Inc. Read more...
Steven Romick Doubles Down on American Express Company's 166 years of experience, combined with strong profitability and growth, may have influenced guru
Contrarian value investor Steven Romick doubled down his holding in American Express (NYSE:AXP), adding 2,410,999 shares to his portfolio on March 31. Read more...
Acquisition Makes Leucadia 15th-Largest Stake in Romick's Portfolio Guru purchases 17.8 million shares in 1st quarter
Steven Romick (Trades, Portfolio), portfolio manager of FPA Crescent Fund, bought only one new stake in the first quarter, but it was big enough to become the 15th-largest stake in his portfolio. Read more...
» More Steven Romick Articles

Commentaries and Stories

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Steven Romick Keeps On Buying Cisco, American Express Stocks guru has continued to buy since the 4th quarter Steven Romick,First Pacific Advisors,Michael Dell, - Steven Romick Keeps On Buying Cisco, American Express
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. More...

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Steven Romick Adds to Stake in Alcoa Weak aluminum prices are likely to have influenced guru Steven Romick - Steven Romick Adds To Stake In Alcoa
Guru Steven Romick added 6,932,590 shares to his stake in Alcoa Inc. (NYSE:AA) in the first quarter. More...

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Donald Yacktman Reduces Stake in Oracle Oracle faces stiff competition in industry Donald Yacktman,Steven Romick - Donald Yacktman Reduces Stake In Oracle
Donald Yacktman (Trades, Portfolio) founded Yacktman Asset Management in 1992. Prior to this, he served as a senior portfolio manager at Selected Financial Services Inc. More...

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Steven Romick Doubles Down on American Express Company's 166 years of experience, combined with strong profitability and growth, may have influenced guru Steven Romick - Steven Romick Doubles Down On American Express
Contrarian value investor Steven Romick doubled down his holding in American Express (NYSE:AXP), adding 2,410,999 shares to his portfolio on March 31. More...

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Rating: 1.0/5 (1 vote)

Acquisition Makes Leucadia 15th-Largest Stake in Romick's Portfolio Guru purchases 17.8 million shares in 1st quarter Steven Romick - Acquisition Makes Leucadia 15th-Largest Stake In Romick's Portfolio
Steven Romick (Trades, Portfolio), portfolio manager of FPA Crescent Fund, bought only one new stake in the first quarter, but it was big enough to become the 15th-largest stake in his portfolio. More...

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Citigroup, Amgen Are Trading With Wide Margin of Safety A look at undervalued guru stocks Steven Romick, Bill Nygren, David Tepper - Citigroup, Amgen Are Trading With Wide Margin Of Safety
The following are some of the stocks that are trading below the Peter Lynch earnings line, according to GuruFocus' All-in-One Screener. More...

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Paul Singer Invests in Stake in Alcoa Guru acquires 67.1 million shares in the 4th quarter Paul Singer,Steven Romick - Paul Singer Invests In Stake In Alcoa
Guru Paul Singer (Trades, Portfolio) purchased a 67,100,000-share stake in Alcoa Inc. (NYSE:AA) in the fourth quarter. More...

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FPA Crescent Fund Q4 2015 Webcast Slides Steven Romick uses slides to make case for fund Steven Romick - FPA Crescent Fund Q4 2015 Webcast Slides
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FPA Crescent Fund's Q4 2015 Webcast Transcript Focus is unchanged, Steven Romick says Steven Romick - FPA Crescent Fund's Q4 2015 Webcast Transcript
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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...

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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...

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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...

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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...

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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...

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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...

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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...

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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...

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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...

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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...

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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


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