Famously patient and conservative investor
) of the FPA Crescent Fund bought 12 new stocks in the second
quarter after staying out of the game in the first. Central bank
policies and few companies trading at low multiples, among other
factors, nudged him to the sidelines in the first three months of
In his first-quarter letter, Romick told investors:
"Suffice to say we aren't seeing much in the way of fat pitches
today, so we are comfortable just letting someone else swing at the
junk that whizzes past us. We can, however, speak to what we think
we do well - patiently wait for opportunity to invest in good
assets at reasonable prices. This doesn't mean we're napping in the
dugout. We have selectively entered the game, recently taking
advantage of our broad mandate, as illustrated by the initiation of
a handful of new positions, largely in emerging markets and
commodity sensitive businesses. We will communicate more about
these when we are no longer active in the market."
Apparently he found more to like in the way of U.S. and global
equities recently. His 12 new stocks bring his total long positions
to 61, giving his portfolio to 13% turnover with a total value of
Romick is also 28.2% weighted in the technology sector, 18.2%
weighted in financial services and 13.9% weighted in health care.
As he reported this week, his top new positions for this quarter
are: Alcoa Inc. (
), Meggitt PLC (LSE:MGGT), Joy Global Inc. (
), Jardine Strategic Holdings Ltd. (SGX:J37) and OAO Gazprom
Alcoa Inc. (
Romick bought 19,175,000 shares of Alcoa Inc. in the second
quarter, when the price averaged $14. The position represents 2.9%
of his portfolio.
Alcoa Inc. is a Pennsylvania corporation and was formed in 1888.
Alcoa Inc. has a market cap of $18.72 billion; its shares were
traded at around $15.97 with and P/S ratio of 1.0. The dividend
yield of Alcoa Inc. stocks is 0.80%.
Meggitt PLC (LSE:MGGT)
Romick bought 20,949,800 shares of Meggitt PLC (LSE:MGGT), which
had an average price of 5 pounds. The position represents 1.8% of
Meggitt PLC designs and manufactures high technology products and
systems for the aerospace, defense and other specialist markets,
including energy, medical, industrial, test and transportation.
Meggitt PLC has a market cap of $3.99 billion; its shares were
traded at around $4.94 with a P/E ratio of 17.40 and P/S ratio of
2.44. The dividend yield of Meggitt PLC stocks is 2.57%. Meggitt
PLC had an annual average earnings growth of 9.20% over the past 10
years. GuruFocus rated Meggitt PLC the business predictability rank
Joy Global Inc. (
Romick purchased 2,730,300 shares of Joy Global, which had an
average price of $60. The holding reflects 1.7% of his portfolio.
Joy Global Inc. was incorporated in Delaware. The company is a
manufacturer and servicer of mining equipment for the extraction of
coal and other minerals and ores. Joy Global Inc. has a market cap
of $6.02 billion; its shares were traded at around $60.29 with a
P/E ratio of 19.00 and P/S ratio of 1.50. The dividend yield of Joy
Global Inc. stocks is 1.20%. Joy Global Inc. had an annual average
earnings growth of 23.00% over the past 10 years. GuruFocus rated
Joy Global Inc. the business predictability rank of 3-star.
Jardine Strategic Holdings Ltd. (SGX:J37)
Romick purchased 1,951,900 shares of Jardine Strategic Holdings
Ltd. In the second quarter, when the price averaged $36. The
holding is 0.71% of his portfolio.
Jardine Strategic Holdings Limited is incorporated in Bermuda.
Jardine Strategic Holdings Ltd. has a market cap of $41.32 billion;
its shares were traded at around $36.56 with a P/E ratio of 12.90
and P/S ratio of 0.69. The dividend yield of Jardine Strategic
Holdings Ltd. stocks is 0.69%. Jardine Strategic Holdings Ltd. had
an annual average earnings growth of 16.70% over the past 10 years.
OAO Gazprom (LSE:OGZD)
Romick purchased 6.5 million shares of OAO Gazprom, which had an
average share price of $8. The holding is 0.58% of his portfolio.
OAO Gazprom is engaged in oil production, refining activities,
electric and heat energy generation. OAO Gazprom has a market cap
of $99.78 billion; its shares were traded at around $8.62 with a
P/E ratio of 3.0 and P/S ratio of 0.65. The dividend yield of OAO
Gazprom stocks is 3.33%. OAO Gazprom had an annual average earnings
growth of 11.90% over the past five years.
See more of Steven Romick (Trades, Portfolio)'s portfolio here. Not
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