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FPA Crescent - Asset Growth Concerns?

scooter
edited June 2011 in Fund Discussions
Steve Romick clearly appears to be a great money manager and has received a large amount of press and acknowledgements. As a result of his success, he's had a really large growth in the assets he manages over the past couple years. I tend to get concerned when (successful) managers receive such a large and rapid AUM growth and if they'll be able to remain nimble enough to exploit their talents. Long story short, I was curious what thoughts / concerns people have with FPACX?

Comments

  • scott
    The fund has closed previously, so I would not be too concerned.
  • phertz
    I have concerns. Why? This is an eclectic fund with quite a variety of what I call special situations. When these type funds bloat, the very reason for their fine performance becomes dissipated.
  • scott
    Maybe Romick can open FPA Allocation Fund to soak up more AUM for the same things he's investing in FPA Crescent.
  • Kenster1_GlobalValue
    Romick and Gundlach to Team Up in New Alternative Fund

    http://news.morningstar.com/articlenet/article.aspx?id=318632#romick

  • ShostakovichShostakovich
    Romick addressed this on FPACX's most recent conference call. He has no intentions to close the fund. He's finding there are advantages to having a larger fund that aren't available to smaller funds. Also thinks small caps aren't where the action will be fore the foreseeable future, and so bloat isn't an immediate concern from that perspective.

    Its worth downloading the audio of the conference call to hear this issue address.

    That said, I'm peeved that he's teaming up with Grundlach and apparently also runs a separate hedge fund of some type. Hate when otherwise "good managers" go the AUM route (see: FAIRX, any one of a number of Royce's offerings).

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