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WealthTrack: Q&A With Steve Romick, Manager, FPA Crescent Fund
Mr. Romick is plenty smooth and has quite the track record. I hate it when he and David Tepper, among others (not you Eric Cinnamond ), are advising us to back off equity some.
Funny guy. He said in the interview that by the end of 1999, the only shareholders he had left were those who forgot they had money invested with him! The fund lost 70% of its shareholders by the end of 1999. He said that in 1999, he thinks the fund lost 1%, maybe 2%. Yahoo Finance is showing a 6.3% loss in 1999. Doesn't look like their website shows their annual returns.
@MFO Members: With all due respect to Steve Romick, I would never pay a fund manager 1.14% ER to hold 46 cents of every dollar I invested in cash. Regards, Ted
Yeah, he said during the interview something to the effect of 'if you think the stock market is going to keep going up, you shouldn't be invested in the fund'
@MFO Members: With all due respect to Steve Romick, I would never pay a fund manager 1.14% ER to hold 46 cents of every dollar I invested in cash. Regards, Ted
I would! (and do).
If that's the position you're gonna take, Ted, you are taking from the manager an important tool.
But that's one way of looking at it. Personally, I don't think investors in FPACX are likely to be disappointed.
>> I would never pay a fund manager 1.14% ER to hold 46 cents of every dollar I invested in cash.
I read an interview ~>15y ago with a money manager who said exactly the same thing wrt her clients. It was at that point I put a lot of money into FPACX, since I wanted him to do just that, meaning pay him for his judgment, period.
It should be cheaper. Like Gabelli and YAFFX. Some of these guys tend to greed, apart from their judgment and process.
As the long term results of the two are separated by about half a percentage point annualized, one could almost say better returns because of a much cheaper price.
Because of its eclectic composition, FPACX may hold up better when something dreadful happens, as it did in 2008.
Romick and a few others did exactly what you pay for in 08-09; PRWCX slumped in the way that makes some investors bail. Check the data from spring 08 on.
Interesting in this forum how little love ICMBX and JABAX get. And check their comparative performance from spring 08 onward.
Longer-term is what interests me, with downside protection and crisis management and positioning. I mean, why else be in a balanced fund? Granted, PRWCX did better than DODBX. But it took them ~2y or a little less from Aug 08 to get and stay whole (back to break-even). Since then it has been hot, yes.
But heck, if you're looking for comparatively recent hotness and chasing latest streaks, look how DODBX outperformed since 2011-12.
No wonder people jump in and out and don't set and forget. I prefer the latter, or say I do.
Comments
http://www.fpafunds.com/docs/fund-fact-sheets/cre-fact-sheet-q1-2014.pdf?sfvrsn=6
Regards,
Ted
If that's the position you're gonna take, Ted, you are taking from the manager an important tool.
But that's one way of looking at it. Personally, I don't think investors in FPACX are likely to be disappointed.
I read an interview ~>15y ago with a money manager who said exactly the same thing wrt her clients. It was at that point I put a lot of money into FPACX, since I wanted him to do just that, meaning pay him for his judgment, period.
It should be cheaper. Like Gabelli and YAFFX. Some of these guys tend to greed, apart from their judgment and process.
Regards,
Ted
Because of its eclectic composition, FPACX may hold up better when something dreadful happens, as it did in 2008.
But, yeah, both are fine.
Hardly.
Romick and a few others did exactly what you pay for in 08-09; PRWCX slumped in the way that makes some investors bail. Check the data from spring 08 on.
Interesting in this forum how little love ICMBX and JABAX get. And check their comparative performance from spring 08 onward.
Regards,
Ted
But heck, if you're looking for comparatively recent hotness and chasing latest streaks, look how DODBX outperformed since 2011-12.
No wonder people jump in and out and don't set and forget. I prefer the latter, or say I do.
Regards,
Ted
In allocating among funds, look not only at returns over 5-10 year periods, but equally importantly, look at the specific holdings within a fund.
Regards, FWIW