Steven Romick

Steven Romick

Last Update: 07-11-2016
Related: First Pacific Advisors
Robert Rodriguez

Number of Stocks: 50
Number of New Stocks: 5

Total Value: $9,157 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 (%)
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 Slashes Genting Stake Company's gross margin and operating margin have been in long-term decline
Steven Romick slashed 15,312,690 shares of Genting (XKLS:4715) from his portfolio at an average price of 4.43 Malaysian ringgit ($1.10) in the second quarter. The trade had a -0.19% impact on Romick’s portfolio. He now owns 41,441,930 shares in the company. Read more...
Steven Romick Exits Carlsberg Company has shown declines in multiple areas of its financial statements over the previous decade
Steven Romick sold out his remaining 389,330 shares in Carlsberg (OCSE:CARL B) in the second quarter at an average price of 627.11 Danish krone ($94.01) per share. Read more...
Steven Romick Reduces Stake in Henkel Henkel reached its 10-year price high in 2nd quarter
Steven Romick trimmed his stake in Henkel (XTER:HEN) by 11.83%, selling 151,340 shares in the second quarter. Read more...
Steven Romick Slashes Stake in Occidental Petroleum Long-term per-share revenue declines and high volatility in oil industry may have influenced guru
Guru Steven Romick slashed his stake in Occidental Petroleum Corp. (NYSE:OXY) during the second quarter. Romick sold 2,482,160 shares for an average price of $74.73. The trade had a -1.8% impact on his portfolio. Read more...
Steven Romick Made 4 New Buys and Increased 2 Positions in 2nd Quarter FPA portfolio manager reports 2nd quarter transactions
Steven Romick (Trades, Portfolio), portfolio manager of the FPA Crescent Fund, seeks long-term equity returns while avoiding permanent capital impairment and limiting the fund’s exposure to risk. An absolute value investor, Romick only invests in companies that offer absolute economic risk/reward propositions. The fund’s return since inception is 10.26%, which outperforms the Standard & Poor’s 500 index by about 1.3%. Additionally, Morningstar analysts gave FPA Crescent Fund a gold rating, praising the fund’s ability to sustain its capital gains during economic downturns. Read more...
» More Steven Romick Articles

Commentaries and Stories

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Steven Romick Slashes Genting Stake Company's gross margin and operating margin have been in long-term decline Steven Romick - Steven Romick Slashes Genting Stake
Steven Romick slashed 15,312,690 shares of Genting (XKLS:4715) from his portfolio at an average price of 4.43 Malaysian ringgit ($1.10) in the second quarter. The trade had a -0.19% impact on Romick’s portfolio. He now owns 41,441,930 shares in the company. More...

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Steven Romick Exits Carlsberg Company has shown declines in multiple areas of its financial statements over the previous decade Steven Romick - Steven Romick Exits Carlsberg
Steven Romick sold out his remaining 389,330 shares in Carlsberg (OCSE:CARL B) in the second quarter at an average price of 627.11 Danish krone ($94.01) per share. More...

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Steven Romick's FPA Crescent Fund Second Quarter 2016 Commentary Discussion of quarter and holdings Steven Romick - Steven Romick's FPA Crescent Fund Second Quarter 2016 Commentary
Dear Shareholders: More...

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Steven Romick Reduces Stake in Henkel Henkel reached its 10-year price high in 2nd quarter Steven Romick - Steven Romick Reduces Stake In Henkel
Steven Romick trimmed his stake in Henkel (XTER:HEN) by 11.83%, selling 151,340 shares in the second quarter. More...

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Steven Romick Slashes Stake in Occidental Petroleum Long-term per-share revenue declines and high volatility in oil industry may have influenced guru Steven Romick - Steven Romick Slashes Stake In Occidental Petroleum
Guru Steven Romick slashed his stake in Occidental Petroleum Corp. (NYSE:OXY) during the second quarter. Romick sold 2,482,160 shares for an average price of $74.73. The trade had a -1.8% impact on his portfolio. More...

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Steven Romick Made 4 New Buys and Increased 2 Positions in 2nd Quarter FPA portfolio manager reports 2nd quarter transactions Steven Romick - Steven Romick Made 4 New Buys And Increased 2 Positions In 2nd Quarter
Steven Romick (Trades, Portfolio), portfolio manager of the FPA Crescent Fund, seeks long-term equity returns while avoiding permanent capital impairment and limiting the fund’s exposure to risk. An absolute value investor, Romick only invests in companies that offer absolute economic risk/reward propositions. The fund’s return since inception is 10.26%, which outperforms the Standard & Poor’s 500 index by about 1.3%. Additionally, Morningstar analysts gave FPA Crescent Fund a gold rating, praising the fund’s ability to sustain its capital gains during economic downturns. More...

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Rating: 5.0/5 (4 votes)

Steven Romick: Will Brexit Spark a Much-Needed Market Revaluation? FPA Crescent Fund special commentary Steven Romick - Steven Romick: Will Brexit Spark A Much-Needed Market Revaluation?
Markets globally have reacted negatively to the British having voted to leave the European Union (EU) after more than four decades. The night before the vote, UK betting markets reflected that the “remain” camp was heavily favored to win. In a 2015 speech titled, “Don’t be Surprised,” I wrote that More...

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Steven Romick Adds to Bank of America Stake Company has reported steady revenue growth over the previous decade Steven Romick - Steven Romick Adds To Bank Of America Stake
Steven Romick added 5,850,370 shares to his stake in Bank of America Corporation (NYSE:BAC) in the first quarter. More...

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First Pacific Advisors Invests in American Express, AIG, Alcoa Fund's largest buys in the 1st quarter First Pacific Advisors,Steven Romick,Lee Ainslie,N - First Pacific Advisors Invests In American Express, AIG, Alcoa
Robert L. Rodriguez, CFA, is the chief executive officer of First Pacific Advisors (Trades, Portfolio) Capital, which bought shares in many companies in the first quarter: More...

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Steven Romick Comments on Citigroup Guru stock highlight
Our equity exposure to financials has increased to 20.5%, up from a net negative exposure in 2008 and higher than the S&P 500’s current weighting of 15.6%. We seek the inexpensive and care not a whit about market weightings. Financials, particularly lenders, meet that hurdle. Citigroup, as an example, traded down to ~60% of tangible equity at one point in the first quarter. We believe tangible equity is pretty solid, even after assuming a higher level of charge-offs. Investors will frequently act as if they are still fighting their last war but the balance sheets of U.S. banks and thrifts are far stronger now than they were in 2008 when many financial institutions were wounded and close to dying.On the eve of the global financial crisis, Citi (NYSE:C) had just 3% tangible equity propping up its tangible assets whereas today, it has 10.5%, higher by a factor of more than three. Some of Citi’s loans will default and it won’t get full recovery in all cases. When we stress test its balance sheet and assume an More...

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Steven Romick's 1st Quarter Crescent Fund Commentary FPA Crescent Fund manager discusses the markets and stock holdings Steven Romick - Steven Romick's 1st Quarter Crescent Fund Commentary
Dear Shareholders: More...

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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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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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