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 […]