FPA CrescentFPACX

Morningstar Rating

Fund Research and Analysis

by Christopher Davis

FPA Crescent's defiance of conventional wisdom makes it a winner.

Finance theory suggests there's a trade-off between risk and reward. Thus, if you want to beat the stock market, you have to take more risk than most stock investors. This offering, Read more

Kudos

Experienced, talented manager.

Superb long-term returns.

Low correlation with the broad market makes the fund a good diversifier for a portfolio. Read more

Risks

Value-oriented strategy means the fund may lag when growth stocks dominate.

Giant cash stake can be a liability in up markets and can make it difficult for investors who want to control their own asset allocations.

Shorting stocks, even when done conservatively and to lower overall portfolio volatility, can be a short-term drag on performance. Read more

Strategy

Manager Steve Romick is a dyed-in-the-wool value investor, and he'll invest across the market-cap spectrum to find bargains. Historically, he's emphasized smaller names, though the fund's market cap Read more

Management

Steven Romick has been the lead manager for this fund since its inception in 1993. Prior to working for First Pacific Advisors, Romick was chairman of Crescent Management and a consulting security analyst for Kaplan, Nathan & Co. Since 2000, Romick Read more

Inside Scoop

This fund is unlike most moderate-allocation offerings. It focuses on small-value stocks, junk bonds, and convertibles rather than the blue-chip stocks and plain-vanilla Read more

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Rooting Out Value Across the Capital Structure
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