Steve Romick: What I’ve Been Buying

Steve Romick: What I’ve Been Buying
Photo by cafecredit

FPA Crescent’s Steve Romick found some value among large financials and high-yield bonds earlier this year, but a blend of low rates and high valuations gives him pause today.

H/T Dataroma

Romick: We actually were able to participate because certain sectors were more attractive. But let’s start with a point at the end of last year, in 2015, on a trailing basis P/E, price/book, and price/sales of the market were at levels not seen since the peaks of ’07 as well as the peak in 2000. And nevertheless, in February, there were a number of different securities and asset classes that were trading down, not the least of which were financials, lenders in specific, and so we were able to increase our exposure to that sector and so we were buyers, wholesale, of a number of different names in our portfolio and added a couple of other names in our portfolio as well into the depth of that weakness.

Klarman: Baupost’s Core Principles Have Helped The Fund Outperform

Seth KlarmanWhen Baupost, the $30 billion Boston-based hedge fund now managed by Seth Klarman, was founded in 1982, it was launched with a core set of aims. Q4 2021 hedge fund letters, conferences and more Established by Harvard professor William Poorvu and a group of four other founding families, including Klarman, the group aimed to compound Read More

Culloton: So, you added to large banks like Citigroup, Bank of America, American Express, not a bank but a lender.

Romick: But a lender, yes.

Culloton: So, these are companies that perhaps due to the memory of the financial crisis which lingers and maybe some of the increased regulation people are very afraid of. What got you comfortable enough to invest or add to these positions?

Full transcript at Morningstar

Get The Full Henry Singleton Series in PDF

Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Steve Romick: What I've Been Buying

Updated on

No posts to display