LEGENDARY VALUE

Exactly what is "legendary" value? Well, with the market being saturated with any number of managed funds, and with this year's darling quite often being next year's loser, any fund that can maintain its winning status over time will become a legend. That is what this week's WealthTrack explores. While most funds survive for at most a few years, any fund that stands out for decades rather than years deserves the moniker of "legend." This week's guest, Steve Romick, has just such a fund which is now celebrating its 30th anniversary of delivering near 10% annualized returns with less than average market risk.  Something that deserves a serious look.  Hope everyone enjoyed this beautiful weekend.  

LEGENDARY VALUE

August 24, 2023


Dear WEALTHTRACK Subscriber,

We have a treat for you this week, a rare interview with Great Investor, Steven Romick, Founder and Co-Portfolio manager of the FPA Crescent Fund, which is celebrating its 30th anniversary this year.

Very few funds have the distinction of surviving, let alone thriving for three decades. As a matter of fact, only 31% of U.S. domestic equity funds last even 20 years, and only a few dozen managers have led the same fund for three decades. 

FPA Crescent has another distinction. It’s lived up to its founding mandate to deliver equity-like returns, with less than market risk, and avoid permanent losses of capital.

Its nearly 10% annualized returns have almost matched the S&P 500’s but its volatility has been considerably lower, both reasons Morningstar gives it a Gold analyst rating and named it Morningstar’s Allocation Fund Manager of the Year in 2013.  

Those are among the reasons we are devoting two WEALTHTRACK episodes to Romick. The first is about current strategy,  and the second, to run in a few weeks, will be devoted to the lessons he has learned over the last 3 decades, some of which he outlined in a keynote speech for Morningstar.  You’ll find a link to the whole speech here.

FPA Crescent is a go anywhere, invest in anything, balanced fund that will hold large amounts of cash if it can’t find attractive values in stock, bonds or other assets. This week Romick discusses how the fund is positioned now. 

If you miss the show on public television, you can watch it on our website over the weekend. You can also find the WEALTHTRACK podcast on Stitcher and SoundCloud as well as iTunes and Spotify.

Please also explore our YouTube channel, where you can watch this show along with Steven Romick’s previous interviews. You’ll find our extensive archive of interviews with financial thought leaders and great investors there as well.

Have a lovely weekend and make the week ahead a healthy, profitable and productive one.

Best regards,

Consuelo