Steven Romick

Steven Romick

Last Update: 10-06-2017
Related: First Pacific Advisors
Robert Rodriguez

Number of Stocks: 56
Number of New Stocks: 2

Total Value: $9,936 Mil
Q/Q Turnover: 11%

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 (%)
201610.2511.96-1.7
2015-2.061.38-3.4
20146.6413.69-7.0
3-Year Cumulative15.1 (4.8%/year)29 (8.9%/year)-13.9 (-4.1%/year)
201321.9532.39-10.4
201210.3316-5.7
5-Year Cumulative54.9 (9.2%/year)98.2 (14.7%/year)-43.3 (-5.5%/year)
20113.022.110.9
201012.0415.06-3.0
200928.3726.461.9
2008-20.55-3716.5
20076.845.491.4
10-Year Cumulative94.9 (6.9%/year)95.7 (6.9%/year)-0.8 (0%/year)
200612.4315.79-3.4
200510.834.915.9
200410.2110.88-0.7
200326.1528.68-2.5
20023.71-22.125.8
15-Year Cumulative250.1 (8.7%/year)164.2 (6.7%/year)85.9 (2%/year)
200136.14-11.8948.0
20003.59-9.112.7
1999-6.2821.04-27.3
19982.7928.58-25.8
199721.9533.36-11.4
20-Year Cumulative480 (9.2%/year)339.2 (7.7%/year)140.8 (1.5%/year)
199622.8822.96-0.1
199526.0437.58-11.5
19944.221.322.9

Top Ranked Articles

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 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.
Read more...
Steven Romick Sells Short Russell 2000 ETF in 1st Quarter Guru trims 4 positions from his portfolio
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. Read more...
Steven Romick Buys Mylan, Adds to 4 Holdings in 2nd Quarter Investor discloses second-quarter portfolio
Returns for Steve Romick’s FPA Crescent Fund rose 4.38% year to date, compared to the S&P 500, which stretched 8.42%. Read more...
Steven Romick Curbs Citigroup Guru reduced his holding by over 2 million shares
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. Read more...
» More Steven Romick Articles

Commentaries and Stories

  • Currently 5.00/5

Rating: 5.0/5 (2 votes)

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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Rating: 3.0/5 (1 vote)

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...

  • Currently 5.00/5

Rating: 5.0/5 (2 votes)

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
More...

GURUS, STEVEN ROMICK, CRESCENT, FPA, FIRST PACIFIC ADVISORS, VALUE INVESTING, CONTRARIAN, MORNINGSTAR, INSTITUTIONAL, LONG-TERM, RISK MANAGEMENT, CAPITAL PRESERVATION, LONG, SHORT, CREDIT, LIQUIDITY,


  • Currently 5.00/5

Rating: 5.0/5 (6 votes)

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...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

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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Rating: 5.0/5 (1 vote)

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...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Steven Romick Sells Short Russell 2000 ETF in 1st Quarter Guru trims 4 positions from his portfolio Steven Romick - 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. More...

STEVEN ROMICK


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First Pacific Open Letter Urges Arconic to Support Elliott Management Changes FPA says it is 'disappointed' with company's board Steven Romick - First Pacific Open Letter Urges Arconic To Support Elliott Management Changes
February 6, 2017 More...

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Steven Romick Comments on Deere Guru stock highlight
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 More...

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Rating: 5.0/5 (1 vote)

Steven Romick's FPA Crescent Fund 2016 Year-End Commentary Discussion of markets and holdings Steven Romick - Steven Romick's FPA Crescent Fund  2016 Year-End Commentary
Dear Shareholders: More...

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Steven Romick Curbs Citigroup Guru reduced his holding by over 2 million shares Steven Romick - 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. More...

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Steven Romick Spots Next Area of Investment Interest: Health Care Romick has third of portfolio in cash, awaiting opportunities Steven Romick - 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. More...

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Steven Romick Cuts Halliburton in 4th Quarter Investor adds to online media empire Steven Romick - 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). More...

STEVEN ROMICK


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Steven Romick's Best Investments of the Year TD Ameritrade is guru's top performer of 2016 Steven Romick,Chuck Akre,Pioneer Investments,Chuck - 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. More...

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