Glencore (LSE:GLEN, Financial) is one of the largest globally diversified commodity businesses operating both industrial andmarketing businesses. Importantly, we believe Glencore operates in a genuinely shareholder-oriented manner. Crescent purchased Glencore off-and-on from 2018 through 2020 at what we believe is a single digit multiple of normal earnings power. The opportunity presented itself when investors were less willing to own commodity sensitive businesses due to a period of low inflation and general disregard for valuation. Net of distributions of above average cyclical profits likely to be earned in 2022, we believe the company still trades at an attractive valuation relative to its long-term earnings power, justifying its continued presence in the Fund.
From Steven Romick (Trades, Portfolio)'s FPA Crescent Fund second-quarter 2022 letter.
