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.
Currently, Romick’s fund contains 57.6% in common equity and 36.3% in cash. According to Morningstar analysis, the fund manager only invests in stocks trading at deep discounts, i.e., “substantial discounts to [the stocks’] economic growth.” During the second quarter, Romick made four new stock buys and increased his position in two other companies.
Nexeo Solutions
Romick purchased 17,691,717 shares of Nexeo Solutions Inc. (NXEO, Financial) at an average price of $9.84 per share. As of June 30, Nexeo represented 1.73% of Romick’s portfolio.
LPL Financial Holdings
The fund manager bought 4,165,970 shares of LPL Financial Holdings Inc. (LPLA, Financial). Romick currently devotes 1.03% of his portfolio to the brokers and exchanges company. The company stock traded at an average price of $25.11 per share.
Lenta Ltd.
Romick purchased 8,153,870 shares of Lenta Ltd. (LSE:LNTR, Financial), a Russian hypermarket company. The company currently occupies 0.64% of Romick’s portfolio and averaged $6.48 per share.
Baidu
The portfolio manager bought 290,466 shares of Baidu Inc. (BIDU, Financial), a Chinese online media site. Baidu represents 0.52% of Romick’s portfolio as of June 30, and the company’s stock price averaged $175.62 per share.
CIT Group
Romick purchased 548,500 shares of CIT Group Inc. (CIT, Financial), increasing his position by 4.87%. The stock averaged $32.49 per share. Currently, Romick owns 11,811,262 shares of CIT Group, which occupies 0.19% of the fund’s portfolio.
Bank of America
The fund manager, who initially purchased 2,940,000 shares of Bank of America Corp. (BAC, Financial) during the first quarter of 2012, added 1,342,050 shares at an average price of $14.05. Currently, Romick owns 24,829,840 of Bank of America, which represents 0.19% of the fund’s portfolio.
See also
You can view the latest guru picks, Romick’s current portfolio and other interesting information on gurus.
Disclosure: The author currently has no position in any of the stocks discussed in the article.
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