In an interview with Morningstar’s The Long View podcast, Brian Selmo, Portfolio Manager of the FPA Crescent Fund (FPACX) and FPA Global Equity ETF (FPAG), discusses the “Winning by Not Losing” philosophy and shares his thoughts on volatility, Artificial Intelligence (AI), the Magnificent Seven, and private equity.
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Additional Disclosures
Please see important information at the top of this webpage. The individual investment examples discussed herein were not chosen based on their performance. It should not be assumed that any transactions in the future will be profitable.
Private securities and limited partnerships are not registered under the federal securities laws and are generally eligible for sale only to certain eligible investors. As such, they may be illiquid, and thus more difficult to sell, because there may be relatively few potential purchasers for such investments, and the sale of such investments may also be restricted under securities laws.
End Notes and Definitions Related to the Article:
Rubin, Robert E. and Weisberg, Jacob. In an Uncertain World: Tough Choices from Wall Street to Washington. Random House, 2004.
FPA Crescent Fund Q1 2025 Commentary (https://fpa.com/docs/default-source/funds/fpa-crescent-fund/literature/quarterly-commentaries/fpa-crescent-fund-commentary-2025-03.pdf?sfvrsn=e8f99e9d_7)
BRICS is an acronym referring to an intergovernmental organization comprising ten countries – Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates.
Credit Spread is the difference in yield between securities with similar maturity but different credit quality. Widening spreads generally indicate deteriorating creditworthiness of corporate borrowers and narrowing indicate improving.
Price-to-Earnings (P/E) Ratio measures share price compared to earnings per share for a stock or stocks in a portfolio.
With respect to the various securities mentioned in the article, as of March 31, 2025 the corresponding position sizes (as a % of Net Asset Value) were as follows: (for the FPA Crescent Fund) Analog Devices (ADI) 2.7, Vail Resorts (MTN) 0.8, Eurofins Scientific (ERF FP) 0.8, Howmet Aerospace (HWM) 0.5, Broadcom Inc. (AVGO) 0.2; (for the FPA Global Equity ETF) Grupo Mexico SAB de CV-SER B (GMEXICOB MM) 0.4.
As of December 31, 2012, the FPA Crescent Fund’s Healthcare sector exposure was 16.4% of equity exposure and was the third largest exposure of the Fund. As of December 31, 2009, the Healthcare exposure was the largest in the fund at 33% of equity exposure.
As of March 31, 2025, the FPA Crescent Fund’s overall average holding period for equity securities was 5.08 yrs, the average holding period for its top 10 holdings was 9.97 yrs.
