Steven Romick

Steven Romick

Last Update: 07-12-2018
Related: First Pacific Advisors
Robert Rodriguez

Number of Stocks: 63
Number of New Stocks: 9

Total Value: $10,617 Mil
Q/Q Turnover: 28%

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 (%)
201710.3921.71-11.3
201610.2511.99-1.7
2015-2.061.24-3.3
3-Year Cumulative19.2 (6%/year)38 (11.3%/year)-18.8 (-5.3%/year)
20146.6413.47-6.8
201321.9532.3-10.3
5-Year Cumulative55 (9.2%/year)107.2 (15.7%/year)-52.2 (-6.5%/year)
201210.3315.99-5.7
20113.021.91.1
201012.0415.05-3.0
200928.3726.352.0
2008-20.55-36.7916.2
10-Year Cumulative101.3 (7.2%/year)125 (8.4%/year)-23.7 (-1.2%/year)
20076.845.141.7
200612.4315.85-3.4
200510.834.836.0
200410.2110.7-0.5
200326.1528.19-2.0
15-Year Cumulative272.6 (9.2%/year)307.7 (9.8%/year)-35.1 (-0.6%/year)
20023.71-21.5825.3
200136.14-11.7647.9
20003.59-9.7513.3
1999-6.2820.4-26.7
19982.7928.7-25.9
20-Year Cumulative425.1 (8.6%/year)294.5 (7.1%/year)130.6 (1.5%/year)
199721.9533.47-11.5
199622.8822.490.4
199526.0438.04-12.0
19944.220.43.8

Top Ranked Articles

A Deeper Look at GE’s 1st-Quarter Earnings Company reports good earnings but still lags competitors
General Electric Co. (NYSE:GE), a major diversified industrials company, said on April 20 that first-quarter adjusted earnings per share increased 14% year over year, driven by strong growth in four of its business segments. Despite this, the Boston-based company still lags its competitors, which include 3M Co. (NYSE:MMM), Honeywell International Inc. (NYSE:HON) and Emerson Electric Co. (NYSE:EMR). Read more...
Facebook Soars on Strong Active User Growth in 1st Quarter Company beats top-line and bottom-line analyst estimates despite ongoing challenges
Facebook Inc. (NASDAQ:FB), a major social network platform, said first-quarter advertising revenues increased 50% year over year, kicking off a strong start to the year despite headwinds due to the Cambridge Analytica data scandal. Read more...
Steven Romick Buys Expedia, Adds to Axalta Coating Systems and WPP Plc Crescent Fund investor maintains conservative stance
Steven Romick (Trades, Portfolio), portfolio manager for the FPA Cresent Fund, acquired Expedia Inc. (NASDAQ:EXPE) and added to stakes in Axalta Coating Systems Ltd. (NYSE:AXTA) and WPP PLC (LSE:WPP) in the fourth quarter, according to GuruFocus Real Time Picks data from Wednesday. Read more...
Steven Romick's Top 7 New Buys in 2nd Quarter Top buys include Buffett's Wells Fargo and Ackman's Mondelez
Steven Romick (Trades, Portfolio), portfolio manager of the FPA Crescent Fund, disclosed on Thursday that his top four new buys are Jefferies Financial Group Inc. (NYSE:JEF), Comcast Corp. (NASDAQ:CMCSA), Charter Communications Inc. (NASDAQ:CHTR) and Wells Fargo & Co. (NYSE:WFC). Romick also initiated a stake in Bill Ackman (Trades, Portfolio)’s Mondelez International Inc. (NASDAQ:MDLZ). Read more...
Steven Romick Exits Legg Mason, Trims Qualcomm, American Express Positions The guru's largest sales of the 4th quarter
Steven Romick (Trades, Portfolio) is the portfolio manager of the FPA Crescent Fund. In the fourth quarter, the guru reduced his position in or exited the following stocks.  Read more...
» More Steven Romick Articles

Commentaries and Stories

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Steven Romick's Top 7 New Buys in 2nd Quarter Top buys include Buffett's Wells Fargo and Ackman's Mondelez Steven Romick, Bill Nygren, Mason Hawkins, Warren  - Steven Romick's Top 7 New Buys In 2nd Quarter
Steven Romick (Trades, Portfolio), portfolio manager of the FPA Crescent Fund, disclosed on Thursday that his top four new buys are Jefferies Financial Group Inc. (NYSE:JEF), Comcast Corp. (NASDAQ:CMCSA), Charter Communications Inc. (NASDAQ:CHTR) and Wells Fargo & Co. (NYSE:WFC). Romick also initiated a stake in Bill Ackman (Trades, Portfolio)’s Mondelez International Inc. (NASDAQ:MDLZ). More...

STEVEN ROMICK, BILL NYGREN, MASON HAWKINS, WARREN BUFFETT, BILL ACKMAN, DODGE & COX


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Steven Romick's FPA Crescent Fund 1st-Quarter 2018 Commentary Discussion of holdings and markets Steven Romick - Steven Romick's FPA Crescent Fund 1st-Quarter 2018 Commentary
Dear Shareholders: More...

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Facebook Soars on Strong Active User Growth in 1st Quarter Company beats top-line and bottom-line analyst estimates despite ongoing challenges Steven Romick - Facebook Soars On Strong Active User Growth In 1st Quarter
Facebook Inc. (NASDAQ:FB), a major social network platform, said first-quarter advertising revenues increased 50% year over year, kicking off a strong start to the year despite headwinds due to the Cambridge Analytica data scandal. More...

STEVEN ROMICK


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A Deeper Look at GE’s 1st-Quarter Earnings Company reports good earnings but still lags competitors Steven Romick - A Deeper Look At GE’s 1st-Quarter Earnings
General Electric Co. (NYSE:GE), a major diversified industrials company, said on April 20 that first-quarter adjusted earnings per share increased 14% year over year, driven by strong growth in four of its business segments. Despite this, the Boston-based company still lags its competitors, which include 3M Co. (NYSE:MMM), Honeywell International Inc. (NYSE:HON) and Emerson Electric Co. (NYSE:EMR). More...

STEVEN ROMICK


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Steven Romick’s Top 3 Trades for 1st Quarter Guru reports quarterly portfolio Steven Romick - Steven Romick’s Top 3 Trades For 1st Quarter
FPA Crescent Fund manager Steven Romick (Trades, Portfolio) disclosed Tuesday that he initiated positions in Facebook Inc. (NASDAQ:FB), Kinder Morgan Inc. (NYSE:KMI) and PG&E Corp. (NYSE:PCG) during the first quarter. More...

STEVEN ROMICK


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FPA Crescent Fund 4th Quarter 2017 Commentary Review of markets and economy Steven Romick - FPA Crescent Fund 4th Quarter 2017 Commentary
Introduction More...

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Steven Romick Exits Legg Mason, Trims Qualcomm, American Express Positions The guru's largest sales of the 4th quarter Steven Romick - Steven Romick Exits Legg Mason, Trims Qualcomm, American Express Positions
Steven Romick (Trades, Portfolio) is the portfolio manager of the FPA Crescent Fund. In the fourth quarter, the guru reduced his position in or exited the following stocks.  More...

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Steven Romick Buys Expedia, Adds to Axalta Coating Systems and WPP Plc Crescent Fund investor maintains conservative stance Steven Romick - Steven Romick Buys Expedia, Adds To Axalta Coating Systems And WPP Plc
Steven Romick (Trades, Portfolio), portfolio manager for the FPA Cresent Fund, acquired Expedia Inc. (NASDAQ:EXPE) and added to stakes in Axalta Coating Systems Ltd. (NYSE:AXTA) and WPP PLC (LSE:WPP) in the fourth quarter, according to GuruFocus Real Time Picks data from Wednesday. More...

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Steven Romick's FPA Crescent Fund 3rd Quarter 2017 Commentary Romick discusses the market Steven Romick - Steven Romick's FPA Crescent Fund 3rd Quarter 2017 Commentary
Dear Shareholders: More...

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Steven Romick Sells Short Volkswagen in 3rd Quarter Guru starts two new positions, including one in auto industry Steven Romick - Steven Romick Sells Short Volkswagen In 3rd Quarter
FPA Crescent Fund manager Steven Romick (Trades, Portfolio) seeks long-term capital appreciation through long and short equity positions. During the third quarter, Romick invested in Porsche Automobil Holding SE (XTER:PAH3)(POAHY) and Axalta Coating Systems Inc. (NYSE:AXTA). The guru also sold short Volkswagen AG (XTER:VOW3)(VLKAY) and reduced his short position in Tencent Holdings Inc. (HKSE:00700)(TCEHY). More...

STEVEN ROMICK


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Steven Romick's Top 5 Global Stock Picks Romick of the Crescent Fund is one of few managers to report international positions Steven Romick - Steven Romick's Top 5 Global Stock Picks
Steven Romick (Trades, Portfolio), portfolio manager of the FPA Crescent fund and noted value investor, discloses 16 international holdings in his portfolio, providing insight into his value-based thinking on a global level. More...

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Steven Romick's FPA Crescent Fund Second Quarter 2017 Commentary Review of markets and holdings Steven Romick - Steven Romick's FPA Crescent Fund Second Quarter 2017 Commentary
Introduction More...

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Steven Romick Buys Mylan, Adds to 4 Holdings in 2nd Quarter Investor discloses second-quarter portfolio Steven Romick - Steven Romick Buys Mylan, Adds To 4 Holdings In 2nd Quarter
Returns for Steve Romick’s FPA Crescent Fund rose 4.38% year to date, compared to the S&P 500, which stretched 8.42%. More...

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Value Investing With a Contrarian Twist Guru Steven Romick searches all types of securities for low risk/high return investments that are out of favor Steven Romick,Warren Buffett,First Pacific Advisor - Value Investing With A Contrarian Twist
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GURUS, STEVEN ROMICK, CRESCENT, FPA, FIRST PACIFIC ADVISORS, VALUE INVESTING, CONTRARIAN, MORNINGSTAR, INSTITUTIONAL, LONG-TERM, RISK MANAGEMENT, CAPITAL PRESERVATION, LONG, SHORT, CREDIT, LIQUIDITY,


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Steven Romick Commentary: Two Decades of Winning by Not Losing We have to make a Valeant effort to always PayLess as we travel Countrywide and make our Global Crossings to find our Blockbuster investments Steven Romick - Steven Romick Commentary: Two Decades Of Winning By Not Losing
To some of you, all Americans are exactly alike. I may as well be President Trump. Like him, you have no idea what I’m about to say. More...

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Steven Romick Comments on AIG Guru stock highlight
AIG (NYSE:AIG)’s fourth quarter results were disappointing, which caused its stock price to decline -3.44% in the first quarter, detracting -0.12% from performance in the period. However, AIG’s share price has increased slightly more than 20% in the trailing twelve month period. The company took an additional reserve to account for poorly underwritten Property & Casualty policies. Nevertheless, we were heartened to see that the board held management accountable and removed the CEO responsible. We continue to hold our AIG stake that trades at just 0.83x tangible equity. More...

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Steven Romick Comments on Arconic Guru stock highlight
Unlike the financial sector that dominated Crescent’s 2016 returns, there wasn’t any one sector that was an unusual driver of performance year to date. However, Arconic (NYSE:ARNC) was one company that did stand out, increasing 42.41% in the quarter, which added 0.73% to the Fund’s first-quarter return.Arconic’s recent stock price performance was neither a function of great industry fundamentals nor of the company successfully executing on plan. It was more a function of Elliott Management Corp., an activist investor, seeking a change in leadership.1 We would view such a change favorably as well.My partner and co-portfolio manager, Brian Selmo, recently authored a letter to Arconic’s Board of Directors, expressing our disappointment with both the company’s board and management given their collective failure to manage the business and deliver shareholder value. Their destructive action (and inaction) left us little alternative but to publicly voice our More...

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Steven Romick's FPA Crescent Fund First Quarter Commentary Analysis of quarter and holdings Steven Romick - Steven Romick's FPA Crescent Fund First Quarter Commentary
Dear Shareholders: More...

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Steven Romick Adds to Qualcomm Guru buys 305,250 shares Steven Romick - Steven Romick Adds To Qualcomm
Steven Romick (TradesPortfolio) added 305,250 shares to his Qualcomm Inc. (NASDAQ:QCOM) stake during the first quarter. The trade had a 0.18% impact on his portfolio. More...

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Steve Romick Reduces Alcoa Stake Guru sells 944,000 shares Steven Romick - Steve Romick Reduces Alcoa Stake
Guru Steven Romick trimmed his stake in Alcoa (NYSE:AA) during the first quarter. Romick sold 944,000 shares at an average price of $28.62 per share. More...

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