Fund Perspectives | March 2026
Day in and day out, the FPA Contrarian Value team works to deepen its understanding of the world’s best businesses while selectively pursuing more episodic commercial opportunities. Many of these businesses will be familiar names—but the biggest and best-known don’t always offer the most compelling risk-adjusted returns looking forward.
For perspective, the FPA Crescent Fund’s weighted average market capitalization is less than half that of its Morningstar Global Moderate Allocation Category peer group, and the FPA Global Equity ETF’s is nearly one-third that of the MSCI All Country World Index.
Market Capitalization: FPA Crescent Fund and FPA Global Equity ETF vs Morningstar Category and Index
As of March 17, 2026
Source: Morningstar and FPA.
Market Capitalization refers to the total dollar market value of a company’s outstanding shares of stock. Commonly referred to as “market cap,” it is calculated by multiplying the total number of a company’s outstanding shares by the current market price of one share. Portfolio composition will change due to ongoing management of the Fund. Past performance is no guarantee, nor is it indicative, of future results.
Not a day goes by without financial pundits discussing the Magnificent Seven: Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla (refer to FPA Crescent Fund Holdings for more information). The FPA Crescent Fund and FPA Global Equity ETF have owned a select few of these names—but only episodically when the risk/reward looked most attractive. As two of the three we own have appreciated and begun trading at valuations we believe offer a slimmer margin of safety (Alphabet and Meta), we have trimmed our exposure in favor of companies that are, well, out of favor.
Trailing 24-Month Purchases
As of December 31, 2025
Portfolio composition will change due to ongoing management of the Fund. Past performance is no guarantee, nor is it indicative, of future results.
Unconstrained by geography, market capitalization, and benchmark composition, we aim to deploy capital into ideas we believe offer the clearest path to asymmetric returns—where any potential upside far outweighs any potential downside. The businesses we’ve been accumulating over the past year share two additional traits: they are not household names and generally domiciled outside the United States.
Size and Domicile of Trailing 24-Month Purchases
As of March 17, 2026
Portfolio composition will change due to ongoing management of the Fund. Past performance is no guarantee, nor is it indicative, of future results. Please refer to the FPA Crescent Fund Holdings and the FPA Global Equity ETF Holdings for more information.
We don’t know exactly what Artificial Intelligence (AI) may or may not do to SaaS companies. And we have no view on the direction of the United States’ current conflict with Iran, other than to hope for a long-lasting, peaceful outcome. With these factors contributing to an uptick in volatility, searching for lesser-known, durable businesses around the world may reward investors willing to ignore the crowd and take the road less traveled.
The FPA Crescent Fund and the FPA Global Equity ETF are managed with a long-term, valuation-driven mindset, seeking durable businesses where we believe the balance of risk and reward is most compelling. If you would like to discuss how this approach is reflected in either strategy, please feel free to reach out.
IMPORTANT INFORMATION
You should consider the FPA Crescent Fund and FPA Global Equity ETF (each a “Fund”, and collectively the “Funds”) investment objectives, risks, and charges and expenses carefully before you invest. The prospectus and summary prospectus detail these and other matters of interest to a prospective investor. The prospectus is available athttps://fpa.com/resources/ for the FPA Crescent Fund and https://fpag.fpa.com/#resources for the FPA Global Equity ETF, or by email at [email protected], or toll-free by calling 1-800-982-4372. Please read the prospectus carefully before investing.
This communication is for informational and discussion purposes only and does not constitute, and should not be construed as, a recommendation, financial promotion, investment advice, encouragement or an offer or solicitation for the purchase or sale with respect to any securities, products, or services discussed, and neither does it provide investment advice. Any such offer or solicitation shall only be made pursuant to the relevant offering documents for an FPA Fund or other client account, which supersedes the information contained herein in its entirety. This communication does not constitute an investment management agreement or offering circular. The information and data presented 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. You should not construe the contents of this communication as legal, tax, investment or other advice or recommendations.
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MSCI ACWI NR USD Index (MSCI ACWI) is an unmanaged free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. Net Return (NR) indicates that withholding taxes are applied to dividend reinvestments. MSCI uses the withholding tax rate applicable to non-resident institutional investors that do not benefit from double taxation treaties.
Morningstar Global Moderate Allocation portfolios seek to provide both income and capital appreciation by investing in a mix of stocks, bonds, and cash. These portfolios typically have a moderate equity exposure, usually between 50% and 70%, with the remainder allocated to fixed income and cash. The Global component indicates that these funds may invest in a broad range of markets, including developed and emerging markets.
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The FPA Crescent Fund and The FPA Global Equity ETF are distributed by Distribution Services, LLC. 190 Middle Street, Suite 301, Portland, ME 04101. Distribution Services, LLC and FPA are not affiliated.