Value Stock Investor Bob Rodriguez Is Hunkering Down

Also see Bob Rodriguez On Advice He Received 30 Years Ago From Charlie Munger

H/T Tim Melvin

Today, value stock mutual fund luminary Bob Rodriguez ruminates. He ruminates on politics, the economy, the stock market and the energy business from his spacious home above Lake Tahoe on the California-Nevada border.

He managed First Pacific Advisors Capital Fund from 1984 through 2010 and was one of the top-performing investment managers in the mutual fund business.

Continuing as a managing partner and strategic adviser, he says he now offers advice to the managers who run the family of six mutual funds and $28.2 billion in assets. And among his incentives for giving good advice is the fact that the bulk of his own money is invested among the firm’s funds.

His approach to stock market investing entails a deep value approach. He likes to wait for a panic to set in before buying stocks. Then he sells when everybody loves those same stocks they threw out at the bottom.

Los Angeles-based FPA’s flagship Capital Fund gained an annualized 10.11% for the 15 years ended Dec. 29 vs. 4.34% for the S&P 500.

IBD caught up with Rodriguez at his Lake Tahoe home, where he talked about the minefield that awaits personal stock investing strategies for 2015.

IBD: Your fund is based in Los Angeles and you’re living in Lake Tahoe. You now describe yourself as the strategic adviser for your family of funds, and I wondered what a strategic adviser does from Lake Tahoe.

Rodriguez: He ruminates. Actually, I’m able to get out of the day-to-day minutiae that consumes most managers. It is very difficult to do that when you’re a manager, but I think I managed that well.

 

I read. I evaluate and I give whatever advice they are willing to accept or reject.

IBD: It’s been a really tough year to make money. Your flagship fund, FPA Capital Fund, which is closed to new investors, hasn’t done all that well this year. I wondered why it’s so hard to make money?

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