The views expressed in these articles, commentaries or recordings are those of the author and/or presenter at the time created and is for informational purposes only. They do not necessarily reflect the views of FPA or the distributor. Future events, results or views may vary significantly from those expressed and are subject to change at any time based on market and other conditions, and FPA and/or the distributor disclaims any responsibility to update such views. No forecasts can be guaranteed, and certain assumptions may prove to be inaccurate. These views may not be relied upon as investment advice or as indication of trading intent on behalf of any FPA portfolio or the distributor and should not be construed as an offer to sell or a solicitation of an offer to buy securities or any product mentioned. FPA shall not be responsible for any trading decisions, damages or other losses from or related to the information, data analysis or opinions or their use. This information and data has been prepared from sources believed reliable. However, the accuracy and completeness of the information cannot be guaranteed and is not a complete summary or statement of all available data. FPA has received certain nominations or awards by third-parties as reflected herein. Investors should review the criteria for each nomination or award as reflected on the third-party’s webpage. You should not construe the contents herein as legal, tax, accounting, or other advice or recommendations.
You should consider the Fund’s investment objectives, risks, fees and expenses before investing. The Prospectus contain this and other important information which should be read carefully before investing.
Abhi Patwardhan, Portfolio Manager and Co-Director of Research of the FPA New Income Fund and FPA Flexible Fixed Income Fund, sits down with InvestmentNews anchor Gregg Greenberg to discuss his team’s strategy for bond investing in the current economic environment.
Please click here for Standardized Performance for the FPA New Income Fund (“FNI”). Please click here for Standardized Performance for the FPA Flexible Fixed Income Fund (“FFI”). Please click here for the principal risks of investing in the funds. You should consider each fund's investment objectives, risks, and charges and expenses carefully before you invest. The Prospectus for each fund details their objective and policies and other matters of interest to the prospective investor. Please read the Prospectus carefully before investing. The Prospectus for each fund may be obtained by clicking here, by calling toll-free, 1-800-982-4372, or by contacting each fund in writing. Comparison to indices are for illustrative purposes only. FNI and FFI do not include outperformance of any index or benchmark in their investment objectives.
The FPA Funds are distributed by UMB Distribution Services, LLC (UMB). UMB and FPA are not affiliated.
Definition of terms used:
Duration: The measure of how much a bond's value will change if interest rates fluctuate. It's a key factor in fixed income investing and is used to evaluate a bond's interest rate risk.
Credit risk: The possibility that a borrower will not repay a debt, which can result in a financial loss for the lender.
High Yield (HY) bond: A high paying bond with a lower credit rating than investment-grade corporate bonds, Treasury bonds and municipal bonds. Because of the higher risk of default, these bonds pay a higher yield than investment grade bonds.
Yield: The return an investor realizes on an investment in a bond. The current yield is the bond's coupon rate divided by its market price.
Past performance is no guarantee, nor is it indicative, of future results.
Click the link below to watch the interview video on InvestmentNews.com:
Synopsis: Mutual Fund Observer’s co-founder David Snowball provides a fund profile of the FPA Queens Road Small Cap Value Fund (QRSVX) highlighting the Funds management style, successful long-term track record, and investment process.
Please read the following disclosures before accessing the article link below:
Please click here for Standardized Performance for FPA Queens Road Small Cap Value Fund – Advisor Class (“Fund”). Please click here for the principal risks of investing in the Fund. The FPA Funds are distributed by UMB Distribution Services, LLC (“UMBDS”). FPA and UMBDS are not affiliated.
There is no guarantee that the Fund will achieve its investment objectives. Portfolio composition will change due to ongoing management of the Fund. References to individual securities or investment categories should not be construed as a recommendation by the Fund, the portfolio managers, the Adviser, or the distributor to purchase or sell such securities or invest in such categories, and any information provided is not a sufficient basis upon which to make an investment decision. It should not be assumed that future investments will be profitable or will equal the performance of the examples discussed. The portfolio holdings as of May 31, 2024 may be obtained here.
FPA did not compensate the third party for statements about FPA and is not aware of any material conflicts of interest in relation to the statements made therein. By providing this article, we are not providing you with investment advice or offering securities for sale to you. Past performance is no guarantee, nor is it indicative, of future results.
FPA Queens Road Small Cap Value Fund’s (QRSVX) Steve Scruggs sat down with John Rotonti Jr. to discuss his portfolio management philosophy, what he looks for when investing in a business, the four pillar process, and much more.
Please click here for Standardized Performance for FPA Queens Road Small Cap Value Fund (“Fund”) and relevant indices. Please click here for the principal risks of investing in the Fund. You should consider the Fund's investment objectives, risks, and charges and expenses carefully before you invest. The Prospectus details the Fund's objective and policies, risks, and other matters of interest to the prospective investor. Please read this Prospectus carefully before investing. The Prospectus may be obtained by clicking here, by calling toll-free, 1-800-982-4372, or by contacting the Fund in writing. Comparison to indices are for illustrative purposes only. The Fund does not include outperformance of any index or benchmark in the investment objectives. The FPA Funds are distributed by UMB Distribution Services, LLC. UMB and FPA are not affiliated.
The statements contained in the podcast reflect the opinions and views of the portfolio manager as of the date interviewed, is subject to change without notice, and may be forward-looking and/or based on current expectations, projections, and/or information currently available. Such information may not be accurate over the long-term. These views may differ from other FPA portfolio managers and analysts of the firm as a whole and are not intended to be a forecast of future events, a guarantee of future results or investment advice.
Portfolio composition will change due to ongoing management of the Fund. References to individual investments or sectors should not be construed as a recommendation by the Fund, the portfolio managers, the Adviser, or the distributor to purchase or sell such investments or invest in such sectors, and any information provided is not a sufficient basis upon which to make an investment decision. It should not be assumed that future investments will be profitable or will equal the performance of the investment or sector examples discussed. The portfolio holdings as of March 31, 2024 may be obtained here.
Future events or results may vary significantly from those expressed and are subject to change at any time in response to changing circumstances and industry developments. The information and data mentioned has been prepared from sources believed reliable, but the accuracy and completeness of the information cannot be guaranteed and is not a complete summary or statement of all available data.
The information contained in the podcast is not complete, may change, and is subject to, and is qualified in its entirety by, the more complete disclosures, risk factors, and other information contained in the Fund’s Prospectus and Statement of Additional Information. The information is furnished as of the date discussed. No representation is made with respect to its completeness or timeliness. The information is not intended to be, nor shall it be construed as, investment advice or a recommendation of any kind.
The Fund primarily invests in equity securities (common stocks, preferred stocks and convertible securities) of small-capitalization U.S. companies, defined as those with market capitalization, at the time of purchase, that is no greater than the largest market capitalization of any company included in the Russell 2000 Index. Investing in small companies involves special risks including, but not limited to, the following: smaller companies typically have more risk and their company stock prices are more volatile than that of large companies; their securities may be less liquid and may be thinly traded which makes it more difficult to dispose of them at prevailing market prices; these companies may be more adversely affected by poor economic or market conditions; they may have limited product lines, limited access to financial resources, and may be dependent on a limited management group; and small cap stocks may fluctuate independently of large cap stocks. All investment decisions are made at the discretion of the Portfolio Manager, in accordance with the current Prospectus.
As of March 31, 2024 FPA assets under management (AUM) totaled approximately $26 billion and includes committed and uncalled capital. AUM includes assets managed by sub-adviser Bragg Financial Advisers, Inc. The AUM attributable to this sub-adviser is estimated, unaudited, and are subject to revision. FPA has not verified the accuracy of the sub-adviser AUM.
The FPA quarterly Fund Commentaries can be accessed at https://fpa.com/funds/overview/fpa-queens-road-small-cap-value-fund.
Effective November 1, 2020, as approved by the shareholders of each series of Bragg Capital Trust ("Bragg Trust"), including the Fund: (i) FPA became the investment adviser to the Fund; (ii) Bragg Financial Advisors, Inc. ("BFA"), the former investment adviser to the Fund, transitioned to serving as the sub-adviser to the Fund pursuant to a subadvisory agreement by and among FPA, BFA and the Bragg Trust. BFA continues to be responsible for the day-to-day management of the Fund, subject to FPA's oversight; and (iii) each of the current Trustees of the Fund were elected by shareholders of the Bragg Trust to serve as the Board of Trustees of the Bragg Trust, replacing the previous Board of Trustees of the Bragg Trust in its entirety. No changes to the Fund's principal investment strategies were made in connection with these changes in management of the Fund, and Steve Scruggs, CFA, Senior Portfolio Manager for BFA, continues to serve as the portfolio manager for the Fund.
The Fund's Total Annual Operating Expenses before reimbursement is 0.96% (Investor Class), 0.90% (Advisor Class), and 0.79% (Institutional Class). The adviser has contractually agreed to waive its management fees and to make payments to limit Fund expenses, until July 27, 2024 so that the total annual operating expenses (excluding interest, taxes, brokerage fees and commissions payable by the Fund in connection with the purchase or sale of portfolio securities, fees and expenses of other funds in which the Fund invests, and extraordinary expenses, including litigation expenses not incurred in the Fund’s ordinary course of business) of the Fund do not exceed 1.04%, 0.99% and 0.89%, for Investor Class, Advisor Class, and Institutional Class shares, respectively. These fee waivers and expense reimbursements are subject to possible recoupment by the adviser from the Fund in future years (within the three years from the date when the amount is waived or reimbursed) if such recoupment can be achieved within the lesser of the foregoing expense limits or the then-current expense limits. The expense limit agreement may be terminated only by the Fund’s Board of Trustees, upon written notice to the adviser. Prior to November 1, 2020, the Fund had a unitized fee structure that limited annual operating expenses to 1.18%.
A market cycle is defined as a period that contains a decline of at least 20% from the previous market peak over at least a two-month period and a rebound to establish a new peak above the previous one by the Russell 2000 Value Index. The portfolio manager considers a full market cycle to typically be a period of five years or more. The drawdown periods discussed reflect Russell 2000 Value Index drawdowns of 20% or greater during each market cycle since inception of the Fund (i.e., 6/28/2002-10/9/2002, 6/4/2007-3/9/2009, 6/23/2015-2/11/2016, 8/22/2018-3/23/2020, 11/8/2021-10/27/2023).
The Russell 2000 Value Index is a subset of the Russell 2000 Index, which tracks the stocks of small domestic companies, based on total market capitalization. The Russell 2000 Value Index represents those stocks of the Russell 2000 with lower price-to-book ratios and lower relative forecasted growth rates. A total return index computes the index value based on capital gains plus cash payments such as dividends and interest. You cannot invest directly in these indexes.
Any comparisons herein of the investment performance of the Fund to the Russell 2000 Value Index are qualified as follows: (i) the volatility of such index may be materially different from that of the referenced fund; (ii) such index may employ different investment guidelines and criteria than the referenced fund and, therefore, holdings in such fund may differ significantly from holdings of the securities that comprise such index; and (iii) the performance of such index may not necessarily have been selected to represent an appropriate index to compare to the performance of the referenced fund, but rather, is disclosed to allow for comparison of the referenced fund’s performance (or the performance of the assets held by such fund) to that of a well-known index. Indexes should not be relied upon as a fully accurate measure of comparison. No representation is made as to the risk profile of any index relative to the risk profile of the referenced fund.
Morningstar Ratings and Definitions
Morningstar data referenced in the podcast is as of March 31, 2024. The Fund’s peer group is the Morningstar Small Value Category (“Category”). This Category consists of portfolios that invest in small U.S. companies with valuations and growth rates below other small-cap peers. Stocks in the bottom 10% of the capitalization of the U.S. equity market are defined as small cap. Value is defined based on low valuations (low price ratios and high dividend yields) and slow growth (low growth rates for earnings, sales, book value, and cash flow). Morningstar rating™ is based upon a Morningstar risk-adjusted return. The Fund received a rating of three stars for the 3-year, and five stars for the 5-Year and 10-Year categories, and the Fund earned a Morningstar Category rank of 48%, 30%, and 24% in the 3-Year, 5-Year, and 10-Year categories, respectively. As of 3/31/24, there were 498 funds overall in the category; there were 457 funds reporting in the 3-Year category; 426 in the 5-Year category, and 335 in the 10-Year category. The average fee in the category is 0.95% and the average fee in the Fee Level Comparison Group is 0.95%. The Fee Level Comparison Group is Small Cap Institutional. The total expense ratio for the Funds Institutional and Investor class shares is 0.79% and 0.96%, respectively.
In relation to the Morningstar Medalist RatingTM, the Analyst-Driven % data point displays the weighted percentage of a vehicle’s pillar ratings assigned directly or indirectly by analysts. The Data Coverage % data point is a summary metric describing the level of data completeness used to generate the overall rating.
The Morningstar Medalist RatingTM is the summary expression of Morningstar’s forward-looking analysis of investment strategies as offered via specific vehicles using a rating scale of Gold, Silver, Bronze, Neutral, and Negative. The Medalist Ratings indicate which investments Morningstar believes are likely to outperform a relevant index or peer group average on a risk-adjusted basis over time. Investment products are evaluated on three key pillars (People, Parent, and Process) which, when coupled with a fee assessment, forms the basis for Morningstar’s conviction in those products’ investment merits and determines the Medalist Rating they’re assigned. Pillar ratings take the form of Low, Below Average, Average, Above Average, and High. Pillars may be evaluated via an analyst’s qualitative assessment (either directly to a vehicle the analyst covers or indirectly when the pillar ratings of a covered vehicle are mapped to a related uncovered vehicle) or using algorithmic techniques. Vehicles are sorted by their expected performance into rating groups defined by their Morningstar Category and their active or passive status. When analysts directly cover a vehicle, they assign the three pillar ratings based on their qualitative assessment, subject to the oversight of the Analyst Rating Committee, and monitor and reevaluate them at least every 14 months. When the vehicles are covered either indirectly by analysts or by algorithm, the ratings are assigned monthly. For more detailed information about these ratings, including their methodology, please go to global.morningstar.com/managerdisclosures/.
The Morningstar Medalist RatingsTM are not statements of fact, nor are they credit or risk ratings. The Morningstar Medalist Rating (i) should not be used as the sole basis in evaluating an investment product, (ii) involves unknown risks and uncertainties which may cause expectations not to occur or to differ significantly from what was expected, (iii) are not guaranteed to be based on complete or accurate assumptions or models when determined algorithmically, (iv) involve the risk that the return target will not be met due to such things as unforeseen changes in management, technology, economic development, interest rate development, operating and/or material costs, competitive pressure, supervisory law, exchange rate, tax rates, exchange rate changes, and/or changes in political and social conditions, and (v) should not be considered an offer or solicitation to buy or sell the investment product. A change in the fundamental factors underlying the Morningstar Medalist Rating can mean that the rating is subsequently no longer accurate.
©2024 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted by Morningstar to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Please click here for Standardized Performance for FPA New Income Fund (“Fund”). Please click here for the principal risks of investing in the Fund. You should consider the Fund's investment objectives, risks, and charges and expenses carefully before you invest. The Prospectus details the Fund's objective and policies and other matters of interest to the prospective investor. Please read this Prospectus carefully before investing. The Prospectus may be obtained by clicking here, by calling toll-free, 1-800-982-4372, or by contacting the Fund in writing. The FPA Funds are distributed by UMB Distribution Services, LLC. UMB and FPA are not affiliated.
There is no guarantee that the Fund will achieve its investment objectives. The portfolio holdings for the Fund as of December 31, 2023 may be obtained here.
Morningstar Fixed Income Manager of the Year Award: FPA has received certain nominations or awards by third-parties. Investors should review the criteria for each nomination or award as reflected on the third-party’s webpage. Morningstar fund manager nominations and awards are presented to fund managers who have distinguished themselves over the past calendar year and have achieved strong risk-adjusted historical performance through the careful execution of their investment strategy and responsible fund stewardship. Morningstar Inc.’s awards are based on qualitative evaluation and research, thus subjective in nature and should not be used as the sole basis for investment decisions. Morningstar’s awards are not guarantees of a fund’s future investment performance. Morningstar Analyst Ratings involve unknown risks and uncertainties which may cause Morningstar’s expectations not to occur or to differ significantly from what they expected. Morningstar, Inc. does not sponsor, issue, sell, or promote any open-end mutual funds including the FPA Funds. For more information, please see https://go.morningstar.com/Morningstar-Awards.
©2024 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted by Morningstar to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Financial Advisor Magazine highlights the investment approach of the FPA Crescent Fund’s Steven Romick, emphasizing the Fund’s unconventional, value-oriented strategy and performance track record over the past 30 years.
Please read the disclosure below before accessing the article link below:
Please click here for Standardized Performance for FPA Crescent Fund – Institutional Class (“Fund”). Please click here for the principal risks of investing in the Fund. The FPA Funds are distributed by UMB Distribution Services, LLC (“UMBDS”). FPA and UMBDS are not affiliated.
There is no guarantee that the Fund will achieve its investment objectives. Portfolio composition will change due to ongoing management of the Fund. References to individual securities or investment categories should not be construed as a recommendation by the Fund, the portfolio managers, the Adviser, or the distributor to purchase or sell such securities or invest in such categories, and any information provided is not a sufficient basis upon which to make an investment decision. It should not be assumed that future investments will be profitable or will equal the performance of the examples discussed. The portfolio holdings as of December 31, 2023 may be obtained here.
Morningstar Moderately Aggressive Category rankings noted in the article are as of September 30, 2023 and are based on total returns. Time periods greater than one-year are annualized. As of September 30, 2023, the Fund’s category percentile rank and number of funds in the category are as follows: 1 year: 2%, 314 funds; 3 years: 2%, 304; 5-years: 5%, 298; 10 years: 25%, 271; and 15 years: 20%, 210.
Moderately Aggressive Allocation Category portfolios seek to provide both capital appreciation and income by investing in three major areas: stocks, bonds, and cash. These portfolios tend to hold larger positions in stocks than moderate-allocation portfolios. These portfolios typically have 70% to 90% of assets in equities and the remainder in fixed income and cash. As of December 31, 2023, there were 321 funds in the category.
©2024 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Morningstar does not adjust total return for sales charges or for redemption fees.
The Fund’s inception was June 2, 1993. In relation to the Fund’s performance over rolling five-year periods over the last thirty years, there were 307 5-year rolling average monthly periods between July 1, 1993 and December 31, 2023. During these periods, the Fund’s 5-year average net return was 9.54% when the S&P 500 Index average 5-year return was below 0%; 8.16% when the S&P 500 Index average 5-year return was from 0%-10%; and 9.80% when the S&P 500 Index average 5-year return was above 10%. Source: Morningstar Direct.
Note that the article indicates that the Fund has a primary benchmark. Comparison of the Fund to any index is for illustrative purposes only. The Fund does not include outperformance of any index in its investment objectives.
In addition, the article indicates that the Net Expense Ratio of the Fund is 1.05%. This ratio is actually the Adjusted Expense Ratio, which is the same as the Net Expense Ratio but also excludes short sale dividend and interest expenses, none of which is paid to FPA. The Net Expense Ratio for the Fund as of the most recent prospectus is 1.06%, and the Total Expense Ratio is 1.09%. For more information about the Fund’s expenses, go to https://fpa.com/funds/overview/crescent.
When you click on the below link you will be leaving fpa.com. The website you are accessing is created and maintained by a third party. The third party is not a client or investor of FPA, or otherwise affiliated with FPA. FPA did not compensate the third party for statements about FPA and is not aware of any material conflicts of interest in relation to the statements made therein. By providing this link, we are not providing you with investment advice or offering securities for sale to you. Past performance is no guarantee, nor is it indicative, of future results.
Morningstar highlights FPA Crescent Fund (FPACX) as one of three great funds to invest in your IRA in 2023. Please click the link below for the full article.
Please click here for Standardized Performance for FPA Crescent Fund. Please click here for the principal risks of investing in the Fund. You should consider the Fund's investment objectives, risks, and charges and expenses carefully before you invest. The Prospectus details the Fund's objective and policies and other matters of interest to the prospective investor. Please read this Prospectus carefully before investing. The Prospectus may be obtained by clicking here, by calling toll-free, 1-800-982-4372, or by contacting the Fund in writing.
The FPA Funds are distributed by UMB Distribution Services, LLC.
There is no guarantee that the Fund will achieve its investment objectives. Portfolio composition will change due to ongoing management of the Fund. References to individual investments or sectors should not be construed as a recommendation by the Fund, the portfolio managers, the Adviser, or the distributor to purchase or sell such investments or invest in such sectors, and any information provided is not a sufficient basis upon which to make an investment decision. It should not be assumed that future investments will be profitable or will equal the performance of the investment or sector examples discussed. The portfolio holdings as of December 31, 2022 may be obtained here.
As of December 31, 2022, the Fund’s subsidized/unsubsidized 30-day SEC standardized yield (“SEC Yield”) was 1.08%/1.03% respectively. The SEC Yield calculation is an annualized measure of the Fund’s dividend and interest payments for the last 30 days, less Fund expenses. Subsidized yield reflects fee waivers and/or expense reimbursements during the period. Without waivers and/or reimbursements, yields would be reduced. Unsubsidized yield does not adjust for any fee waivers and/or expense reimbursements in effect. The SEC Yield calculation is based on the price of the Fund at the beginning of the month.
Morningstar Allocation—70% to 85% Equity Category
Funds in allocation categories seek to provide both income and capital appreciation by investing in multiple asset classes, including stocks, bonds, and cash. These portfolios are dominated by domestic holdings and have equity exposures between 70% and 85%.
The Morningstar Analyst RatingTM is not a credit or risk rating. It is a subjective evaluation performed by the manager research analysts of Morningstar. Morningstar evaluates funds based on five key pillars, which are process, performance, people, parent, and price. Analysts use this five pillar evaluation to determine how they believe funds are likely to perform relative to a benchmark, or in the case of exchange-traded funds and index mutual funds, a relevant peer group, over the long term on a risk-adjusted basis. They consider quantitative and qualitative factors in their research, and the weight of each pillar may vary. The Analyst Rating scale is Gold, Silver, Bronze, Neutral, and Negative. A Morningstar Analyst Rating of Gold, Silver, or Bronze reflects an analyst’s conviction in a fund’s prospects for outperformance. Analyst Ratings are continuously monitored and reevaluated at least every 14 months. For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to http://corporate1.morningstar.com/AnalystRating.
©2023 Morningstar, Inc. All Rights Reserved.
Morningstar highlights FPA New Income, Inc. (FPNIX) as one of 4 unique funds in the short-term bond Morningstar Category. The Morningstar Analyst RatingTM is not a credit or risk rating. It is a subjective evaluation performed by the manager research analysts of Morningstar (the Analysts). Morningstar evaluates funds based on five key pillars, which are process, performance, people, parent, and price. Analysts use this five pillar evaluation to determine how they believe funds are likely to perform relative to a benchmark, or in the case of exchange-traded funds and index of mutual funds, or a relevant peer group, over the long term on a risk-adjusted basis. They consider quantitative and qualitative factors in their research, and the weight of each pillar may vary. The Analyst Rating scale is Gold, Silver, Bronze, Neutral, and Negative. A Morningstar Analyst Rating of Gold, Silver, or Bronze reflects an analyst’s conviction in a fund’s prospects for outperformance. Analyst Ratings are continuously monitored and reevaluated at least every 14 months. For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to http://corporate1.morningstar.com/AnalystRating/. The Morningstar Analyst Rating should not be used as the sole basis in evaluating a fund. Morningstar Analyst Ratings involve unknown risks and uncertainties which may cause Morningstar’s expectations not to occur or to differ significantly from what we expected.
©2022 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted by Morningstar to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Morningstar, Inc. has not granted consent for it to be considered or deemed an “expert” under the Securities Act of 1933.
Portfolio composition will change due to ongoing management of the Fund. Please note that any references in this report to specific securities or instruments are for informational purposes only and should not be construed as a recommendation by the Fund, the portfolio managers, FPA, the distributor, or Morningstar to purchase or sell such securities, and any information provided is not a sufficient basis upon which to make an investment decision. It should not be assumed that future investments will be profitable or will equal the performance of the security/instrument examples discussed.
Please click here for Standardized Performance for FPA New Income, Inc.. Please click here for the Fund’s Q3 2022 Commentary, which also includes a full list of the Fund’s holdings as of September 30, 2022.
The FPA Funds are distributed by UMB Distribution Services, LLC, 235 W Galena Street, Milwaukee, Wisconsin 53212
Synopsis: In an interview with Consuelo Mack on PBS’s Wealthtrack, FPA New Income, Inc. (FPNIX) Senior Advisor Tom Atteberry discusses new investment opportunities in bonds.
Please click here for Standardized Performance for FPA New Income, Inc. (“Fund”). Please click here for the principal risks of investing in the Fund. You should consider the Fund's investment objectives, risks, and charges and expenses carefully before you invest. The Prospectus details the Fund's objective and policies and other matters of interest to the prospective investor. Please read this Prospectus carefully before investing. The Prospectus may be obtained by clicking here, by calling toll-free, 1-800-982-4372, or by contacting the Fund in writing. The FPA Funds are distributed by UMB Distribution Services, LLC.
There is no guarantee that the Fund will achieve its investment objectives. Portfolio composition will change due to ongoing management of the Fund. References to individual investments or sectors should not be construed as a recommendation by the Fund, the portfolio managers, the Adviser, or the distributor to purchase or sell such investments or invest in such sectors, and any information provided is not a sufficient basis upon which to make an investment decision. It should not be assumed that future investments will be profitable or will equal the performance of the investment or sector examples discussed. Comparison to indices is for illustrative purposes only. The Fund does not include outperformance of any index or benchmark in the investment objectives. The portfolio holdings as of June 30, 2022 may be obtained here.
Morningstar Short-term Bond Category
Short-term bond portfolios invest primarily in corporate and other investment-grade U.S. fixed-income issues and typically have durations of 1.0 to 3.5 years. These portfolios are attractive to fairly conservative investors, because they are less sensitive to interest rates than portfolios with longer durations. Morningstar calculates monthly breakpoints using the effective duration of the Morningstar Core Bond Index (MCBI) in determining duration assignment. Short-term is defined as 25% to 75% of the three-year average effective duration of the MCBI. As of June 30, 2022, there were 615 funds in this category. ©2022 Morningstar, Inc. All Rights Reserved.
See the end of the disclosures for a link to the Podcast. Please click here for Standardized Performance for FPA Crescent Fund (“Fund”) and relevant indices. Please click here for the principal risks of investing in the Fund. You should consider the Fund's investment objectives, risks, and charges and expenses carefully before you invest. The Prospectus details the Fund's objective and policies, risks, and other matters of interest to the prospective investor. Please read this Prospectus carefully before investing. The Prospectus may be obtained by clicking here, by calling toll-free, 1-800-982-4372, or by contacting the Fund in writing. Comparison to indices are for illustrative purposes only. The Fund does not include outperformance of any index or benchmark in the investment objectives. The FPA Funds are distributed by UMB Distribution Services, LLC.
Portfolio composition will change due to ongoing management of the Fund. References to individual investments or sectors should not be construed as a recommendation by the Fund, the portfolio managers, the Adviser, or the distributor to purchase or sell such investments or invest in such sectors, and any information provided is not a sufficient basis upon which to make an investment decision. It should not be assumed that future investments will be profitable or will equal the performance of the investment or sector examples discussed. The portfolio holdings as of September 30, 2021 may be obtained here.
As of September 30, 2021 FPA assets under management (AUM) totaled approximately $29.5 billion and includes committed and uncalled capital. AUM includes assets managed by sub-advisers Bragg Financial Advisers, Inc. and WhiteHawk Capital Partners, LP. The AUM attributable to these sub-advisers is estimated, unaudited, and are subject to revision. FPA has not verified the accuracy of the sub-advisers AUM.
Investing in Special Purpose Acquisition Companies (“SPACS”) involve risks. SPACs are not required to provide the depth of disclosures or undergo the rigorous due diligence of a traditional initial public offering (IPO). Investors in SPACs may become exposed to speculative investments, foreign or domestic, in higher risk sectors/industries. SPAC investors generally pay certain fees and give the sponsor certain incentives (e.g., discounted ownership stakes) not found in traditional IPOs. Certain conflicts of interest may arise between investors and sponsors because of these fees and incentives.
Value style investing presents the risk that the holdings or securities may never reach their full market value because the market fails to recognize what the portfolio management team considers the true business value or because the portfolio management team has misjudged those values. In addition, value style investing may fall out of favor and underperform growth or other style investing during given periods. An account may lack diversification, thereby increasing the risk of loss, and the account’s performance may be volatile. As a result, an investor could lose all or a substantial amount of its investment.
Margin of safety is a principle of investing in which an investor only purchases securities when their market price is significantly below their intrinsic value. In other words, when the market price of a security is significantly below your estimation of its intrinsic value, the difference is the margin of safety.
The FPA quarterly Fund Commentaries can be accessed at https://fpa.com/funds/overview/crescent.
FPA was awarded the Morningstar US Allocation Fund Manager of the Year in 2013. The US Allocation Fund Manager of the Year winners are chosen based on research and in-depth qualitative evaluation by Morningstar’s Manager Research Group. Nominations are made by Morningstar manager research analysts, then narrowed to a list of finalists by each asset-class team. The entire analyst team meets to debate the merits of the finalists in each asset class. Voting commences immediately after each asset-class meeting, and nominees receiving the most votes are the winners.
The Morningstar Analyst RatingTM is not a credit or risk rating. It is a subjective evaluation performed by the manager research analysts of Morningstar. Morningstar evaluates funds based on five key pillars, which are process, performance, people, parent, and price. Analysts use this five pillar evaluation to determine how they believe funds are likely to perform relative to a benchmark, or in the case of exchange-traded funds and index mutual funds, a relevant peer group, over the long term on a risk-adjusted basis. They consider quantitative and qualitative factors in their research, and the weight of each pillar may vary. The Analyst Rating scale is Gold, Silver, Bronze, Neutral, and Negative. A Morningstar Analyst Rating of Gold, Silver, or Bronze reflects an analyst’s conviction in a fund’s prospects for outperformance. Analyst Ratings are continuously monitored and reevaluated at least every 14 months. For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to http://corporate1.morningstar.com/AnalystRating/.
Morningstar Category Definitions:
Allocation—50% to 70% Equity: Funds in allocation categories seek to provide both income and capital appreciation by investing in multiple asset classes, including stocks, bonds, and cash. These portfolios are dominated by domestic holdings and have equity exposures between 50% and 70%.
World Allocation: World-allocation portfolios seek to provide both capital appreciation and income by investing in three major areas: stocks, bonds, and cash. While these portfolios do explore the whole world, most of them focus on the U.S., Canada, Japan, and the larger markets in Europe. It is rare for such portfolios to invest more than 10% of their assets in emerging markets. These portfolios typically have at least 10% of assets in bonds, less than 70% of assets in stocks, and at least 40% of assets in non-U.S. stocks or bonds.
World Large Stock: World large stock portfolios invest in a variety of international stocks that are larger. World-stock portfolios have few geographical limitations. It is common for these portfolios to invest the majority of their assets in developed markets, with the remainder divided among the globe’s smaller markets. These portfolios typically have 20%-60% of assets in U.S. stocks.
Long-Short Equity: Long-short portfolios hold sizeable stakes in both long and short positions in equities, exchange traded funds, and related derivatives. Some funds that fall into this category will shift their exposure to long and short positions depending on their macro outlook or the opportunities they uncover through bottom-up research. At least 75% of the assets are in equity securities or derivatives, and funds in the category will typically have beta values to relevant benchmarks of between 0.3 and 0.8 during a three-year period.
The Morningstar Analyst Rating should not be used as the sole basis in evaluating a fund. Morningstar Analyst Ratings involve unknown risks and uncertainties which may cause Morningstar’s expectations not to occur or to differ significantly from what we expected.
©2021 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted by Morningstar to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
For access to the full Podcast click here.
Morningstar highlights FPA New Income (FPNIX) management’s diversified yet diligent approach in navigating volatile markets while delivering positive returns for over three decades. Please note, the Fund has been closed to new investors since August 1, 2020.
©2021 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted by Morningstar to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Please click here for Standardized Performance for FPA New Income, Inc.. Please click here for the Fund’s Q1 2021 Commentary, which also includes a full list of the Fund’s holdings as of March 31.2021.
On PBS’ ‘Consuelo Mack WealthTrack,” FPA Crescent’s (FPACX) Steven Romick talks about putting cash to work in times of market volatility, and what he‘s investing in now.
Please click here for Standardized Performance for FPA Crescent Fund (“Fund”) and relevant indices. Please click here for the principal risks of investing in the Fund. You should consider the Fund's investment objectives, risks, and charges and expenses carefully before you invest. The Prospectus details the Fund's objective and policies, risks, and other matters of interest to the prospective investor. Please read this Prospectus carefully before investing. The Prospectus may be obtained by clicking here, by calling toll-free, 1-800-982-4372, or by contacting the Fund in writing. Comparison to indices are for illustrative purposes only. The Fund does not include outperformance of any index or benchmark in the investment objectives. The FPA Funds are distributed by UMB Distribution Services, LLC.
Portfolio composition will change due to ongoing management of the Fund. References to individual investments or sectors should not be construed as a recommendation by the Fund, the portfolio managers, the Adviser, or the distributor to purchase or sell such investments or invest in such sectors, and any information provided is not a sufficient basis upon which to make an investment decision. It should not be assumed that future investments will be profitable or will equal the performance of the investment or sector examples discussed. The portfolio holdings as March 31, 2021 may be obtained here.
Morningstar highlights three short-term bond funds with significant manager ownership. Manager ownership in FPNIX exceeds $1.5mm as of January 31, 2020. You can find updated manager ownership statistics for all FPA funds here.
©2020 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted by Morningstar to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Please click here for Standardized Performance for FPA New Income, Inc.. Please click here for the Fund’s Q2 2020 Commentary, which also includes a full list of the Fund’s holdings as of June 30, 2020.
References to individual investments are for informational purposes only and should not be construed as recommendations by the Fund, the portfolio managers, FPA or the distributor. Any information provided is not a sufficient basis upon which to make an investment decision. It should not be assumed that future investments will be profitable or will equal the performance of any investment examples discussed. Past performance is no guarantee, nor is it indicative, of future results.
Morningstar Fund Manager of the Year/Decade Nominations and Awards
FPA has received certain nominations or awards by third-parties as reflected herein. Investors should review the criteria for each nomination or award as reflected on the third-party’s webpage. More detail is provided below.
The 2009 Morningstar Domestic Fund Manager of the Decade award is based on risk adjusted results over the past 10 years (2000-2009), and other considerations, including the risks assumed to achieve the results, the strength of the manager, strategy, the firm’s stewardship, and asset size. Both individual fund managers and management teams are eligible, and being a previous winner of the Morningstar Fund Manager of the Year award isn’t a prerequisite. Morningstar’s fund analysts select the Fund Manager of the Decade award winners based on Morningstar’s proprietary research and in-depth evaluation.
The nominee for the Fund Manager of the Year award is presented each year to recognize a manager's past achievements. The Fund Manager of the Year award winners are chosen based on research and in depth qualitative evaluation by Morningstar’s Manager Research Group. Nominations are made by Morningstar manager research analysts, then narrowed to a list of finalists by each asset-class team. The entire analyst team meets to debate the merits of the finalists in each asset class. Voting commences immediately after each asset-class meeting, and nominees receiving the most votes are the winners. The award is presented to fund managers who have distinguished themselves over the past calendar year and have achieved strong risk adjusted historical performance through the careful execution of a solid investment strategy and responsible fund stewardship. Morningstar’s Manager Research Group consists of various wholly owned subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC. For more information, please see https://go.morningstar.com/Morningstar-Awards.
The Morningstar Analyst RatingTM is not a credit or risk rating. It is a subjective evaluation performed by the manager research analysts of Morningstar. Morningstar evaluates funds based on five key pillars, which are process, performance, people, parent, and price. Analysts use this five-pillar evaluation to determine how they believe funds are likely to perform relative to a benchmark, or in the case of exchange-traded funds and index mutual funds, a relevant peer group, over the long term on a risk-adjusted basis. They consider quantitative and qualitative factors in their research, and the weight of each pillar may vary. The Analyst Rating scale is Gold, Silver, Bronze, Neutral, and Negative. A Morningstar Analyst Rating of Gold, Silver, or Bronze reflects an analyst’s conviction in a fund’s prospects for outperformance. Analyst Ratings are continuously monitored and reevaluated at least every 14 months. For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to http://corporate1.morningstar.com/AnalystRating.
The Morningstar Fund Manager of the Decade and Year nominations and awards, as well as the Morningstar Analyst Rating for a fund should not be used as the sole basis in evaluating a fund. Morningstar Analyst Ratings involve unknown risks and uncertainties which may cause Morningstar’s expectations not to occur or to differ significantly from what they expected.
©2020 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted by Morningstar to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Additional Disclosures
References to geographic location of the companies that the Fund holds is as of June 30, 2020.
The information noted about the Fund’s private credit investments or private loans is as of June 30, 2020 and is for illustrative purposes only, and is not intended to imply any future performance of the Fund. The reference to ‘mid-teens returns’ is the weighted average Internal Rate of Return (“IRR”) of those investments. The weighted average IRR is based on the size of all investment level IRRs plus net income from private loans that were committed but not invested. Weighted average allocations are based on firm level allocations. Of the 40 investments the Fund has made since 2009, 35 have been exited and 5 are still open. IRR is calculated from the ‘Initiated’ date through the ‘Exited’ date for exited investments, and through June 30, 2020 for open investments. IRR is presented net of all underlying manager or sourcing fees, but gross of FPA management fees and expenses, which would reduce these returns. The IRR noted herein should not be construed as, and is not indicative of, the performance of the Fund.
Source for Warren Buffet Quote: Fortune Magazine, February 19, 2001, ‘The Value Machine Warren Buffet’s Berkshire Hathaway is on a buying binge. You were expecting stocks?’, Interviewer, Carol Loomis.
‘Margin of Safety’ is a principle of investing in which an investor purchases securities when they believe the market price is significantly below its estimated intrinsic value. In other words, when the market price of a security is, in an investor’s view, significantly below their estimation of the intrinsic value, the difference is the margin of safety. Using the margin of safety principle may help to reduce downside risk. Note, determining a company’s “true” worth or intrinsic value is highly subjective. There is no guarantee that the methods used to evaluate intrinsic value will be accurate or precise or that an investment made using this principle will be successful. Margin of safety does not imply future performance or profitability.
References to the Fund’s “equity portfolio” refers to the Fund’s long equity holdings, which excludes the long portion of any pair trade. The long equity segment average weight in the Fund was 70.2% and 69.2% for Q2 2020 and YTD through 6/30/20, respectively. Long equity portfolio statistics noted herein do not represent the results that the Fund or an investor can or should expect to receive. Fund investors may only invest or redeem their shares at net asset value.
References to current and prospective earnings yield are based on FPA calculations as of June 30, 2020 and uses data sourced from CapIQ, Factset, and/or Bloomberg. The 5% earnings yield on the Fund’s equity portfolio noted refers to the earnings per share for the most recent 12-month period divided by the current market price per share as of June 30, 2020.
Please click here for Standardized Performance for FPA Crescent Fund. Please click here for the Fund’s Q2 2020 Commentary, which also includes a full list of the Fund’s holdings as of June 30, 2020. Past performance is no guarantee, nor is it indicative, of future results.
The FPA Funds are distributed by UMB Distribution Services, LLC: UMB Fund Services 235 W Galena Street, Milwaukee, Wisconsin 53212
On PBS’ ‘Consuelo Mack WealthTrack,” FPA New Income’s (FPNIX) Tom Atteberry talks about current conditions in the bond market and where to find safe haven investments.
Please click here for Standardized Performance for FPA New Income, Inc. (“Fund”). Please click here for the principal risks of investing in the Fund. You should consider the Fund's investment objectives, risks, and charges and expenses carefully before you invest. The Prospectus details the Fund's objective and policies and other matters of interest to the prospective investor. Please read this Prospectus carefully before investing. The Prospectus may be obtained by clicking here, by calling toll-free, 1-800-982-4372, or by contacting the Fund in writing. Comparison to indices are for illustrative purposes only. The Fund does not include outperformance of any index or benchmark in the investment objectives. The FPA Funds are distributed by UMB Distribution Services, LLC.
Please click here for Standardized Performance for FPA Crescent Fund (“Fund”). Please click here for the principal risks of investing in the Fund. You should consider the Fund’s investment objectives, risks, fees and expenses before investing.
Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown.
Russel Kinnel, Director of Manager Research for Morningstar, discusses why investors should hold onto Gold-rated FPA Crescent Fund (FPACX) despite outflows from active managers across the industry.
The Morningstar Analyst RatingTM is not a credit or risk rating. It is a subjective evaluation performed by the manager research analysts of Morningstar. Morningstar evaluates funds based on five key pillars, which are process, performance, people, parent, and price. Analysts use this five pillar evaluation to determine how they believe funds are likely to perform relative to a benchmark, or in the case of exchange-traded funds and index mutual funds, a relevant peer group, over the long term on a risk-adjusted basis. They consider quantitative and qualitative factors in their research, and the weight of each pillar may vary. The Analyst Rating scale is Gold, Silver, Bronze, Neutral, and Negative. A Morningstar Analyst Rating of Gold, Silver, or Bronze reflects an analyst’s conviction in a fund’s prospects for outperformance. Analyst Ratings are continuously monitored and reevaluated at least every 14 months. For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to https://morningstardirect.morningstar.com/clientcomm/Morningstar_Analyst_Rating_Brief_Descriptions.pdf. This report is for the one-year period ending May 2019.
©2019 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted by Morningstar to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Morningstar, Inc. has not granted consent for it to be considered or deemed an “expert” under the Securities Act of 1933.
Please note that any references in this article to specific securities are being provided as a means of illustrating FPA’s investment thesis and should not be construed as a recommendation by the strategy, the portfolio managers, FPA or the distributor to purchase or sell such securities, and any information provided is not a sufficient basis upon which to make an investment decision. It should not be assumed that future investments will be profitable or will equal the performance of the security examples discussed. Past performance is no guarantee, nor is it indicative, of future results.
Steven Romick, Brian Selmo and Mark Landecker speak with Financial Advisor about how they define value, the diversity that their outlook can help bring to the portfolio, and where they currently see risk in the market.
Barron's 'Sector Focus' blog features some of Greg Nathan's Consumer-sector stock picks.
For the original article, please click here. (Financial Times subscription needed)
To read the New Income Special Commentary discussed in this article, please click here.
Tom Atteberry sits down with Consuelo Mack to discuss the risk associated with traditional corporate and Treasury Bonds.
Please note that in this video, Tom Atteberry is incorrectly referred to as the lead Portfolio Manager of New Income (FPNIX). Tom Atteberry and Abhijeet Patwardhan serve as co-Portfolio Managers for the Fund.
MarketWatch's 'Outside the Box' column today reports on the retirement of Bob Rodriguez ("This mutual fund manager knew how to make your money grow: FPA's Rodriguez beat stock and bond markets with patience and realism," by John Coumarianos).
In coverage today of investment managers' positioning for the U.S. election, Reuters quotes the FPA Capital Third Quarter Commentary ("Amid election jitters, many big funds stay aggressive but cash tempts," by Tim McLaughlin and Jamie McGeever).
Steven Romick and FPA Crescent are the subjects of the 'Manager Profile' in the September 12 debut issue of Citywire Professional Buyer magazine ("Steven Romick: Value investing may be out favor but FPA Crescent fund manager Steven Romick tells Alex Steger how he arrived at this philosophy, times it has caused him pain and where he sees opportunities in the current market").
TheStreet featured a video interview of Tom Atteberry by investment reporter Rhonda Schaffler ("Bond Fund Manager Favors Asset Backed Debt in Low Rate Environment; One fund manager finds investment opportunities in subprime auto loans; Tom Atteberry, who manages the FPA New Income Fund, is investing in asset backed securities as a way to generate additional yield for bond investors. Atteberry favors securities backed by subprime auto loans, and avoids high yield debt.").
In Morningstar's 'Fund Spy' column today, senior analyst for fixed-income strategies Eric Jacobson highlights FPA's expense limitation agreement for FPA New Income effective June 1 ("Putting the Investor Horse in Front of the Fund Company Cart: FPA New Income's shareholder-conscious pricing and policy decisions are almost novel in their genesis").
See the section, "Objective: Volatility Protection," on pages 23 to 28.
In The Wall Street Journal's Investing In Funds & ETFs supplement today, FPA Crescent is highlighted as a fund that has produced strong risk-adjusted results while not adhering to any one particular style box, "Some Mutual Funds Rally by Not Sticking to a Style: Go outside the category? That worked for some funds that did best over the past 15 years.
Morningstar produced their latest analyst report on FPA New Income, in which they state "safety and stability are the hallmarks of this offering."
For glossary of terms, please click here.
Morningstar's 'Five-Star Investor' column today highlights FPA New Income among "Medalist funds in the multisector- and non-traditional-bond groups . . . that held up reasonably well in the last two stress tests for fixed-income funds: the disparate bond-market years of 2008 and 2013" ("5 Go-Anywhere Bond Funds That Have Shown Resilience: While hardly low-risk, these multisector- and non-traditional-bond funds have held up well in recent stress tests," by Christine Benz).
Arik Ahitov comments in the cover story of this week's Barron's on active management ("Return of the Stockpickers: Reports of the death of active fund management are greatly exaggerated. In fact, it's likely to do quite well again if interest rates go up," p. L7, by Sarah Max).
See the excerpt below. (Subscription required for full access.)
[Excerpt:] When John Templeton said, "The time of maximum pessimism is the best time to buy," he probably wasn't thinking that his tenet might one day refer to his own industry. Yet, for active mutual fund managers, 2014 was a point of maximum pessimism.
While the Standard & Poor's 500 returned 13.7% for the year, stockpickers struggled to keep up. Just 19.9% of U.S. equity fund managers bested their benchmarks, according to Morningstar -- but those who did managed an advantage of 1.8 percentage points, on average. Specialists, such as sector and alternative funds, also struggled, with 33% and 25%, respectively, beating their benchmarks.
[...]
As more money moves into the indexes, it could create more opportunity for stockpickers. "It becomes a self-fulfilling prophecy," says Arik Ahitov, co-manager of $1.2 billion FPA Capital (FPPTX). Ahitov says more than a quarter of the companies in his bogey, the Russell 2500, have net negative income. "You have all of these unprofitable companies going up, and nobody seems to care. An index fund doesn't distinguish between what is and isn't profitable. Everything moves together." His fund has averaged 14.4% annual gains since 1984, versus 11.9% for its benchmark. But, like many deep-value funds with large cash positions -- recently 28% of assets -- it has lagged behind lately, last year by nearly six percentage points.