Steven Romick

Steven Romick

Last Update: 07-07-2017
Related: First Pacific Advisors
Robert Rodriguez

Number of Stocks: 52
Number of New Stocks: 2

Total Value: $9,769 Mil
Q/Q Turnover: 7%

Details: Top Buys | Top Sales | Top Holdings  Embed:

Steven Romick Watch

  • 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%.

    But the investor wrote in a first quarter commentary, “Two Decades of Winning by Not Losing,” that he prefers to track performance over full market cycles rather than to succumb to “short-termism.”


  • Value Investing With a Contrarian Twist

    “Patience, a long-term focus and avoiding the fads are key for successful investing. Some of the most successful stock investors of the last few decades in the U.S. aren’t known for finding the latest and greatest.”  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.


  • Steven Romick Comments on AIG

    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.

    From Steven Romick (Trades, Portfolio)'s first quarter 2017 FPA Crescent Fund commentary.   

  • Steven Romick Comments on Arconic

    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 opinion.

    From Steven Romick (Trades, Portfolio)'s first quarter 2017 FPA Crescent Fund commentary.   

  • Steven Romick's FPA Crescent Fund First Quarter Commentary

    Dear Shareholders:


  • 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.

    Romick now owns 2.1 millions shares of the company.


  • 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.

    Romick now owns 3,866,740 shares of Alcoa.


  • Steven Romick Sells Short Russell 2000 ETF in 1st Quarter

    Steven Romick (Trades, Portfolio), portfolio manager of the FPA Crescent Fund, seeks value through an eclectic variety of securities: company stocks, corporate bonds and convertible bonds.

    Romick’s portfolio consists of both long and short positions, especially stocks that the consensus does not wish to own. Such companies have low price-earnings (P/E) valuations and trade at discounts to private market value. During the quarter ending March 31, Romick sold short the iShares Russell 2000 (IWM). The manager also trimmed his position in four companies: American Express Co. (NYSE:AXP), Alleghany Corp. (NYSE:Y), Cisco Systems Inc. (NASDAQ:CSCO) and Analog Devices Inc. (NASDAQ:ADI).


  • First Pacific Open Letter Urges Arconic to Support Elliott Management Changes

    February 6, 2017


  • Steven Romick Comments on Deere

    Take Deere (NYSE:DE), for example. A superior company long known for its wide range of high-quality agricultural equipment and leading U.S. market share, Deere has, nevertheless, not been immune to weaker farm economics. The U.S. has been challenged. Brazil has been horrible. What Deere hoped to accomplish in Eastern Europe changed when Putin’s troops marched into Crimea. Success in the low horsepower Indian market has been slow coming. Deere’s sales worldwide have declined almost 30% from their 2013 peak while earnings per share have plunged almost 50%. A chart of its stock price and earnings per share suggests something entirely different however. Its stock has hit a new, all-time high while earnings are back at 2010 levels. Where’s the margin of safety in the purchase of shares now trading at 21.8x trailing twelve month earnings?7 Deere’s mid-cycle earnings should be higher, which would make the normalized valuation not quite as dear but we miss when such companies would trade as if the bad times would last forever. We aren’t picking on Deere. There’s lots of stuff that crosses our desks that hasn’t made much sense.

    For a spell, the stock prices of some companies will defy logic but that won’t last forever. Eventually, fundamentals should prevail. In the interim, stock prices can trade anywhere. We hope to populate the Fund with quality companies whose current earnings fail to appropriately reflect longer-term prospects. Sadly, we’re finding a lot of Deeres out there, which explains that for as long as we can remember, we went an entire quarter (Q3 2016) without initiating a new position.

    From Steven Romick (Trades, Portfolio)'s FPA Crescent Fund fourth quarter 2016 shareholder letter.   

  • Steven Romick's FPA Crescent Fund 2016 Year-End Commentary

    Dear Shareholders:


  • Steven Romick Curbs Citigroup

    Contrarian defensive investor Steven Romick (Trades, Portfolio) slashed 2,027,020 shares of Citigroup Inc. (NYSE:C) from his portfolio during the fourth quarter. The trade had a -1.03% impact on his portfolio. Romick now holds 8,308,010 shares.


  • Steven Romick Spots Next Area of Investment Interest: Health Care

    At the $33.1 billion FPA Crescent Fund, widely followed stock manager Steven Romick (Trades, Portfolio) puts avoiding risk first, but he also embraces volatile markets to make steely buys of plummeting equities.

    His cash allocation of 35.7% as of Dec. 31 suggests he sees opportunities that meet his absolute value criteria ahead. The cash also position remains about on par with its level of 35.49% at third quarter-end, when he said in his shareholder letter that he felt “better off just doing nothing instead of putting new investment in the Fund.” The portfolio inactivity did not imply any slack in efforts to research companies to nab.


  • Steven Romick Cuts Halliburton in 4th Quarter

    Steven Romick (Trades, Portfolio), portfolio manager of the FPA Crescent Fund, invests in long / short equity positions and short-term bonds. During fourth-quarter 2016, the manager eliminated his position in Halliburton Co. (NYSE:HAL) and expanded positions in Yahoo Inc. (YHOO) and Baidu Inc. (NASDAQ:BIDU).



  • Steven Romick's Best Investments of the Year

    Steven Romick (Trades, Portfolio) is the portfolio manager of FPA Crescent Fund. He manages a portfolio composed of 50 stocks with a total value of $9.337 billion. The following are the best performers of his investments this year.

    TD Ameritrade Holding Corp. (AMTD), with a market cap of $23.4 billion, has gained 32.2% year to date. The guru's stake represents 2.01% of his total assets.


  • 23 Questions With Adam Strauss of Appleseed Fund

    1. How and why did you get started investing? What is your background?

    My father was a lifelong value investor and most of my investing habits came from watching him invest and learning from him. He has always been a contrarian, as an investor and otherwise. He spent most of his career as a sell-side analyst for William Blair, a growth shop, despite his natural inclination as a value investor.


  • FPA Capital Trims Positions in Microsoft, Cisco, Oracle

    Robert L. Rodriguez, CFA, is the CEO of FPA Capital Fund. During the third quarter the fund’s largest sells were the following:

    Its stake in Arconic Inc. (ARNC) was reduced by 68.20% with an impact of -3.44% on the portfolio.


  • Aon: A Stock for Risky and Uncertain Times

    Aon PLC (NYSE:AON) is an insurance brokerage company and a consulting company. When the world gets riskier, other companies turn to insurance to offload some of that risk. When the world gets more uncertain, other companies turn to consultants for advice and solutions.

    The current environment suggests these should be good times for Aon, but its share price has dipped lately. Looking at a year-to-date chart indicates this is just another blip on the upward journey of the share price, or is it?


  • Regional US Banks Offer Strong Predictable Value

    Three regional banks, Bank of the Ozarks Inc. (NASDAQ:OZRK), Prosperity Bancshares Inc. (NYSE:PB)  and Signature Bank (NASDAQ:SBNY), have high predictability and trade below their 10-year median price-earnings ratio. With high profitability and strong upside potential, these companies offer strong value potential in the short term.

    Regional US banks have high number of undervalued companies based on P/E (ttm)


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