fpa funds
Robert Rodriguez

The newest issue of the Graham and Doddsville newsletter.

An excerpt from the Fall 2010 issue:

We are pleased to present you with the tenth edition, Issue X, of Graham & Doddsville, Columbia Business School‘s student-led investment newsletter co-sponsored by the Heilbrunn Center for Graham & Dodd Investing and the Columbia Investment Management Association. This issue features an interview with Steven Romick, portfolio manager of FPA Crescent Fund. Mr. Romick outlines his free-range capital allocation approach and walks through his preference for large-cap, internationally exposed companies with pricing power. He also discusses the fund‘s recent investment in distressed mortgages.

Anyone who is not familiar with FPA, should learn more about it. Robert Rodriquez the CEO has one of the best long term track records of any mutual fund manager. Robert Rodriquez has managed the FPA Capital Fund (FPPTX) and the FPA New Income Fund since the funds’ inceptions in 1984. During his tenure, he has achieved an annualized return of 16.91% as of 9/30/2007. In the same period S&P 500 has returned 13.17% annually. Mr. Rodriguez is one of the few who warned investors about the financial crisis a few years earlier. Rodriquez is the hero in Roger Lowenstein’s most recent bestseller The End of Wall Street. Lowenstein in the book, describes how Rodriguez realized that the whole financial system was in serious danger years before its collapse. Here is a book review of the The End of Wall Street which I wrote earlier this year.

The issue also features an interview with Donald G. Smith, who volunteered for Ben Graham at UCLA. His fund concentrates on the bottom decile of price to tangible book stocks and has compounded 15% over 30 years. We also talk with Danilo Santiago, CBS ?01 and Claudio Skilnik, CBS ?02, who operate a long-short fund with a unique strategy of focusing on a stable set of 85 companies. We also aim to offer specific investment ideas that are relevant today. The current issue includes two student investment ideas, including U.S. Physical Therapy (USPH), presented by Ryan Coyle ’11 and Core-Logic, Inc. (CLGX) by Alex Latushkin ’11. Please feel free to contact us if you have comments or ideas about the newsletter as we continue to refine this publication for future editions. Enjoy!

The newsletter can be found below:

Graham and Doddsville newsletter Fall 2010