Former FPA Manager – Bob Rodriguez – Shares Market Insights

Robert (Bob) Rodriguez, former managing partner at asset-management firm FPA, shared insights and opinions regarding various market-related topics in an interview recently published in Advisor Perspectives. Here are some highlights: On mean reversion:  Rodriguez emphasizes that a mean reversion will occur. He shares his belief that the “standards in the industry are being compromised; monetary policy has so totally distorted the capital markets. You are now into the eighth year of a period that is unprecedented in the likes of human history.” When asked, “What is driving the flow of mutual fund assets to passive strategies and what can or should […]

FPA’s Rodriguez: Bigger Crisis Coming If U.S. Doesn’t Act Soon

Top strategist Bob Rodriguez of FPA Capital — one of the few to warn about the 2008 financial crisis in advance — says the window the U.S. has to confront its debt issues and avoid a Europe-esque crisis is narrowing. In a speech given at an Institute for Private Investors gathering last week, Rodriguez said 2013 will be the most crucial year in 80 years in terms of getting the country on the right fiscal path before “budgetary financial pressures will explode” starting in 2018, Advisor One reports. According to Rodriguez, every year after 2013 that the U.S. goes without […]

Rodriguez: No Time to Lose on Fiscal Reforms

Top fund manager Bob Rodriguez of  First Pacific Advisors says the U.S. needs to get is financial house in order — and soon. “We need significant fundamental reductions in expenditures at the Federal level this year because they’re not going to happen in 2012, which is an election year,” Rodriguez, back from his year-long sabbatical, tells Advisor One. “If not, by 2013 we’ll be sitting on more than $17 trillion in debt. Therefore, the window to start reform is only about seven months.” Rodriguez says his position on equities involves a “high degree of defensiveness”. The energy sector remains his […]

Inside Rodriguez’s Approach

A new Bloomberg article takes a look at First Pacific Advisors’ Bob Rodriguez, offering some insights into the strategy of the fund manager whose 15% average annual return over the past 25 years ranks #1 among diversified U.S. equity funds (according to Morningstar). Among the key parts of Rodriguez’s strategy, writes Bloomberg’s Charles Stein: He focuses on two or three industries at a given time; He looks for firms with market values between $1 billion and $4 billion; He makes sure those firms are trading at what he considers “bargain” prices; If he can’t find enough stocks that meet those […]

Buffett, Whitman, Grantham & Others Weigh In

Kiplinger’s recently asked six top strategists to give their take on investing and where the markets are headed from here. A sampling of the responses: Warren Buffett: While he says he has no idea where stocks will head in the short term, Buffett says that “over a ten-year period you will do considerably better owning a group of equities than you will owning Treasuries. In fighting the economic war, we’ve taken action that sows the seeds of substantial inflation down the road. Not in the next six months or year, but ten years from now the dollar will buy a […]

Rodriguez on What to Do Now — and The Next Crisis

In a recent interview with WealthTrack’s Consuelo Mack, First Pacific Advisors’ Bob Rodriguez talks about his current market outlook and strategy, why he thinks the government is fundamentally broken, and what he believes will be the next crisis to hit the economy. Rodriguez has an exceptional track record in both bonds and stocks, and was one of the few strategists who saw the credit crisis coming.

Rodriguez Bullish on Energy Stocks — Not So Bullish on Economy

Bob Rodriguez of First Pacific Advisors sees continued tough times for the economy, but that doesn’t mean he’s staying on the sidelines. In an interview with Morningstar, Rodriguez discusses his firm’s big recent push into energy stocks. A number of factors — very low valuations, the fact that the world is consuming three times as much oil as it is finding, and the huge amounts of cash energy firms were able to generate in the last “up” cycle — have caused Rodriguez to deploy more capital into the market than at any time in the last 25 years, he says, […]

Gabelli, Grantham, Gross & Others Weigh In

A number of top investment strategists offered their opinions about the market and the economy at the recent Morningstar Investor Conference in Chicago, including value fund star (and Benjamin Graham disciple) Mario Gabelli. Gabelli, whose ABC fund posted its first negative returns in 14 years last year — when it dropped just 2% — sees opportunities in the market for long-term investors. “Basically we are very simple: What will the stock market do over the next ten years?” he told MarketWatch.com. His firm thinks gross world profit will grow at about 3% going forward, with inflation of 3%. Margins will […]

The Contrarians’ Revenge?

MarketWatch recently had an interesting piece on contrarian investment strategies, highlighting the fact that many of the contrarian managers who were hit hard last year are now netting some strong bounce-back gains. “As the market has bounced back in recent weeks, [several] contrarian-style funds, with their bargain-minded ways, have been outperforming,” writes MarketWatch’s Sam Mamudi, discussing well-known contrarian managers like David Dreman, Bill Miller, and Marty Whitman. “Dreman Contrarian Large Cap Value is up about 7% so far this year, while Third Avenue Value [Whitman’s fund] has gained around 13% and Miller’s fund is up 8% — well ahead of […]

Five Top Managers Are Buying — Cautiously

Noticing a trend that we’ve picked up on in recent weeks, Fortune notes that several extreme value investors have begun to see good, safe buys in the current market. In an interview with the magazine, top fund managers Robert Rodriguez, Susan Byrne, Jeremy Grantham, Tom Forester, and Leslie Christian all tell Fortune that they’re seeing a attractive stocks in the market right now — though they all remain somewhat cautious in this unprecedented environment. Rodriguez, who had been holding a good amount of cash in the past couple years because he believed the market was overvalued, said his screening system […]