Insight into FPA Crescent Fund's Q3 2024 Moves
Steven Romick (Trades, Portfolio), a seasoned portfolio manager at FPA since 1996, recently disclosed his investment activities for the third quarter of 2024 through the latest N-PORT filing. Romick, who began his career at Crescent Management and served as a consulting security analyst at Kaplan, Nathan & Co., applies a distinctive investment philosophy at the FPA Crescent Fund. The fund, known for its contrarian approach, seeks undervalued assets across a broad spectrum of securities, including equities and bonds, focusing on long-term capital appreciation while aligning closely with client interests.
Summary of New Buys
During the third quarter, Steven Romick (Trades, Portfolio) expanded the FPA Crescent Fund's portfolio by adding four new stocks. Noteworthy among these was the purchase of 395,969 shares of Pernod Ricard SA (XPAR:RI, Financial), which now represents 0.93% of the portfolio with a total value of €59.77 million. Other significant new holdings include Orion Corp (Spin Co) (XKRX:271560, Financial) with 482,504 shares valued at ₩35.97 million, and EchoStar Corp (SATS, Financial) comprising 933,511 shares valued at $23.17 million.
Key Position Increases
Romick also strategically increased positions in five existing stocks. The most substantial increase was in Heineken Holding NV (XAMS:HEIO, Financial), where an additional 279,118 shares were acquired, bringing the total to 2,416,656 shares valued at €182.38 million. This represents a 13.06% increase in share count, impacting the portfolio by 0.33%. Another notable increase was in Eurofins Scientific SE (XPAR:ERF, Financial), with shares rising by 108.96% to a total of 477,375 shares valued at €30.23 million.
Summary of Sold Out Positions
The third quarter also saw Romick exiting 25 positions entirely. The most impactful was the complete sale of 2,241,472 shares in FirstEnergy Corp (FE, Financial), which had a -1.34% impact on the portfolio. Another significant exit was from Groupe Bruxelles Lambert SA (XBRU:GBLB, Financial), with all 273,088 shares sold, impacting the portfolio by -0.3%.
Key Position Reductions
Additionally, Romick reduced holdings in 16 stocks. Notably, shares in Holcim Ltd (XSWX:HOLN, Financial) were cut by 797,357, a -20.43% decrease, impacting the portfolio by -1.1%. Jefferies Financial Group Inc (JEF, Financial) also saw a reduction of 1,310,827 shares, a -27.9% decrease, with a -1.02% portfolio impact. These stocks traded at average prices of CHF80.85 and $56.73 respectively during the quarter.
Portfolio Overview
As of the third quarter of 2024, Steven Romick (Trades, Portfolio)'s portfolio comprised 58 stocks. The top holdings included 5.32% in Meta Platforms Inc (META, Financial), 5.08% in Alphabet Inc (GOOGL, Financial), and 5.01% in Analog Devices Inc (ADI, Financial). The portfolio shows a diverse industry spread, maintaining significant positions across 11 sectors including Communication Services, Technology, and Financial Services.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
