FPA Crescent Fund
Objective:
The Contrarian Value Strategy, including FPA Crescent Fund, endeavors to provide, over the long-term, an equity-like return with less risk than the stock market.
Philosophy:
Absolute value investors. We seek genuine bargains rather than relatively attractive securities.
Alignment of interests. We invest our money alongside yours, and we act as stewards of our shared capital.
Broad mandate. We invest across the capital structure, asset classes, market caps, industries, and geographies. We are willing to hold cash.
Long-term focus. We believe the best way to accomplish our goals is to accept short-term underperformance in exchange for long-term success.
Macroeconomic view. We incorporate an understanding (sometimes limited) of the economic environment.
Volatility. If we have performed our research correctly, volatility creates opportunity, not risk.
Downside protection / Risk minimization. We aim to protect capital first and create long-term equity-like returns second. We cannot eliminate risk, but we conduct ourselves by hoping for the best, while preparing for the worst.
For additional information, please reference the Contrarian Policy Statement.
As of December 31, 2011
Comparative Performance
After Tax Returns
Historical Performance
Portfolio Structure *
Top Sectors *
Top Holdings *
* As of December 31, 2011. Past performance is not indicative of future performance. The Russell 2000 Index consists of the 2,000 smallest companies and the Russell 2500 Index consists of the 2,500 smallest companies in the Russell 3000 total capitalization universe. These indices are considered a measure of small and mid capitalization stock performance. The Standard & Poor's 500 Stock Index (S&P 500) is a capitalization-weighted index which covers industrial, utility, transportation and financial service companies, and represents approximately 75% of the New York Stock Exchange (NYSE) capitalization and 30% of NYSE issues. This index is considered a measure of large capitalization stock performance. These indices do not reflect any commissions or fees which would be incurred by an investor purchasing the stocks they represent. The Balanced Benchmark is a combined index of which 60% reflects the Russell 2500 Index and 40% the Barclay Government/Credit Index. The performance of the Fund and of the Averages is computed on a total return basis which includes reinvestment of all distributions.
^ FPC1Z - Charles Schwab only.