Steven Romick

Steven Romick

Last Update: 2014-10-10
Related: First Pacific Advisors
Robert Rodriguez

Number of Stocks: 62
Number of New Stocks: 2

Total Value: $9,468 Mil
Q/Q Turnover: 4%

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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Logic Makes Steven Romick Skeptical Sometimes Steven Romick - Logic Makes Steven Romick Skeptical Sometimes
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Steven Romick


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Rating: 5.0/5 (2 votes)

Steven Romick Increases Positions, Russian Oil Companies in Q3 Steven Romick - Steven Romick Increases Positions, Russian Oil Companies In Q3
Manager of FPA Capital’s Crescent Fund Steven Romick (Trades, Portfolio) is skeptical of today’s market, as he explained in his shareholder letter and demonstrated in refusing to buy new stocks in the third quarter. More...

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Rating: 4.5/5 (2 votes)

Steven Romick Comments on Alcoa And Norsk Hydro
We initiated positions in two aluminum companies last fall, Alcoa (AA) and Norsk Hydro (OSL:NHY), that we saw as commercial opportunities or, as we like to call them, “3 to 1s”, i.e., 3x the perceived upside to its downside. The oversimplified and bigger picture view was that we saw the price of aluminum was at an inflation-adjusted low and the stock prices of these companies were down in kind, as can be seen in the following graphs. More...

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Steven Romick Comments on Jardine Matheson And Jardine Strategic
Crescent Co-Portfolio Manager Mark Landecker profiled our investment in the “Jardines” at our FPA Investor Day. These Hong Kong-based holding companies can trace their roots back to 1832 and the founding family remains in control and continues to manage and shepherd the growth of these sister entities. More...

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Steven Romick's Q2 FPA Crescent Fund Shareholder Letter Steven Romick - Steven Romick's Q2 FPA Crescent Fund Shareholder Letter
Dear Shareholders: More...

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Rating: 3.8/5 (4 votes)

Steven Romick Returns to Buying Stocks: Top 5 Purchases Steven Romick - Steven Romick Returns To Buying Stocks: Top 5 Purchases
Famously patient and conservative investor Steven Romick (Trades, Portfolio) of the FPA Crescent Fund bought 12 new stocks in the second quarter after staying out of the game in the first. Central bank policies and few companies trading at low multiples, among other factors, nudged him to the sidelines in the first three months of the year. More...

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Steven Romick's Top Five Stocks Steven Romick - Steven Romick'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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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, EOG
According to GuruFocus updates, these stocks have declined the most since Gurus have bought. More...

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

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Steven Romick's First Quarter 2014 Crescent Fund Letter to Investors Steven Romick - Steven Romick's First Quarter 2014 Crescent Fund Letter To Investors
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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Weekly Guru Bargains Highlights: VOD, LNKD
According to GuruFocus updates, these stocks have declined the most since Gurus have bought. More...

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Rating: 0.0/5 (0 votes)

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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Rating: 0.0/5 (0 votes)

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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Rating: 2.0/5 (1 vote)

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
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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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User Comments

Keithlevy1234
ReplyKeithlevy1234 - 3 months ago
No its a pair trade he did.
JoeDaWealthManager
ReplyJoeDaWealthManager - 6 months ago
Why short VZ? Is it a race to the bottom on price plans?

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