The Few, the Proud, the 30-Year Veterans With Good Results
A look at some Morningstar Medalists with remarkable longevity and results.
FPA Capital (FPPTX) marked its 30th anniversary as part of the FPA family last week by boasting it had also been the top-performing domestic-stock fund over that span. The fund, with a Morningstar Analyst Rating of Silver, gained nearly 15% annualized from July 11, 1984, when FPA bought the fund from Transamerica, through July 15, 2014. Meanwhile, the average U.S. stock fund with a record that long gained about 10.8%, the S&P 500 11.6%, and the Russell 2500 Index 12%.
It’s a remarkable achievement, but it comes with a small asterisk. The fund has stuck to the same high-conviction, concentrated, value-oriented approach for three decades, but Bob Rodriguez, the manager responsible for most of that track record, stepped back from day-to-day management of the portfolio in late 2009. So, while current managers Dennis Bryan and Arik Ahitov share Rodriguez’s philosophy and approach--albeit without his enthusiasm for delivering fire and brimstone sermons on the markets, monetary policy, and fiscal programs--they do not own the entirety of that 30-year record. Bryan, who has worked on the fund for about 20 years, has been a named manager since 2007, while Ahitov became a manager in 2013.
Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.