Skip to Content
US Videos

Expect More Volatility

Steve Romick, mananger of FPA Crescent, anticipates a volatile several years and emphasizes having a long time horizon.

Mentioned: ,

Mike Breen: I found it interesting, and I don't know if these holdings are still in there, it looked like you actually owned Amgen (AMGN) and eBay (EBAY) as well. Which were a little bit, I don't want to say anomalous, but sort of a value-tilting firm and sort of very conservative. And if you still have those, what are the theses on those stocks?

Steve Romick: We do have, both of those positions have been reduced somewhat. We took a lot of money out of retail. Because the leverage in retail doesn't all show up on the balance sheet. They have all the off-balance-sheet leverage from their operating leases. So we wanted to--we were so concerned about the consumer, and yet we felt that we weren't sure how bad things were going to get. We felt eBay relative to a number of other bricks-and-mortar retailers who've got the rents they've got to pay, would be a much better position. It actually, from our purchase, has done relatively well.

Michael Breen has a position in the following securities mentioned above: AMGN. Find out about Morningstar’s editorial policies.