Top Value Manager Even Gloomier on 2008
Wary of subprime mess, FPA's Rodriguez halts stock, bond purchases.
Just when you thought Bob Rodriguez couldn't get any gloomier, the highly regarded value investor has become even more downbeat.
Rodriguez, the hugely successful manager of FPA Capital (FPPTX) and FPA New Income (FPNIX), recently announced he put a halt to purchases of stocks and high-yield bonds at both portfolios on Dec. 14. His decision is a reaction to the subprime mortgage-induced credit crunch, which he expects to worsen in coming months. Rodriguez says he'll review his actions weekly, but he doesn't anticipate any change in course until February or March 2008.
Christopher Davis does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.