| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 10.2% | 3.1% | 17.7% |
| 2025 |
|---|
| 17.7% |
FPA Crescent Fund delivered 3.09% in Q4 2025 and 17.65% for the full year, with performance driven by top contributors Alphabet, Citigroup, and TE Connectivity. The fund maintains its value-aware investment philosophy, focusing on cases where quality and value intersect while avoiding speculative market areas. Portfolio managers are actively deploying capital into small to mid-cap global securities, believing the investment community has cast its gaze away from these constituents that offer asymmetric risk-reward for patient investors. Recent purchases demonstrate this commitment, with new investments spanning international small-cap names and healthcare stocks. The fund acknowledges higher market multiples suggest potential near-term volatility but continues bottom-up fundamental analysis rather than making top-down bets. With an average holding period exceeding five years, the strategy has generated equity-like returns while emphasizing capital preservation over three decades. The managers believe their research process and patient approach will continue identifying opportunities where deferred gratification creates value for long-term shareholders.
Focus on value-aware investing where quality and value intersect, particularly in small to mid-cap global securities that offer asymmetric risk-reward opportunities for patient capital willing to look forward three to five years.
The fund believes various market constituents offer asymmetric risk-reward for those willing to look forward three to five years, particularly small to mid-cap global securities. They maintain their value-aware philosophy and expect their research process to continue identifying opportunities where quality and value intersect.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 29 2026 | 2025 Q4 | ADI, AMZN, AVTR, BDX, C, CHTR, CMCSA, CRM, GOOGL, HEIA.AS, IFF, JEF, KMX, META, MSFT, NOW, NTDOY, ORCL, SAF.PA, SAP, SNOW, TEL, WDAY | AI, global, healthcare, Quality, small caps, technology, value | MSFT | The fund emphasizes being value aware, focusing on cases where both quality and value intersect. They avoid speculative areas where reward for taking risks is… |
| Oct 31 2025 | 2025 Q3 | C, GOOG, IFF, JDE GR, KMX | Compounding, diversification, equities, Quality, value | - | FPA Crescent continues its flexible value approach across equities and credit, balancing defensive positioning with selective growth exposure. The fund maintained holdings in global franchises… |
| Aug 10 2025 | 2025 Q2 | AMRZ | capital preservation, downside protection, flexibility, liquidity, risk control | - | The letter focuses on capital preservation through flexible asset allocation amid heightened macro uncertainty. Management emphasizes downside protection, liquidity, and opportunistic risk-taking when markets dislocate.… |
| Mar 31 2025 | 2025 Q1 | - | - | - | - |
| Dec 31 2024 | 2024 Q4 | 003550 KS, CMCSA, GLEN LN, HEIA NA | - | - | - |
| Oct 30 2024 | 2024 Q3 | JDE GR, JEF | - | - | - |
| Jul 31 2024 | 2024 Q2 | C, CHTR, KMX | - | - | - |
| May 10 2024 | 2024 Q1 | 0A5I LN | - | - | - |
| Jan 31 2024 | 2023 Q4 | FIF, GOOG, META | - | - | - |
| Sep 30 2023 | 2023 Q3 | - | - | - | - |
| Aug 19 2023 | 2023 Q2 | AVGO, OTEX | - | - | - |
| Apr 27 2023 | 2023 Q1 | ADI, HLB GR | - | - | - |
| Nov 2 2023 | 2022 Q4 | AIG, AMZN | - | - | - |
| Apr 11 2022 | 2022 Q3 | - | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
Small CapsSmall caps getting strong start in 2026 supported by easing monetary conditions and constructive fiscal backdrop. Small caps more sensitive to economic cyclicality which is overdue for expansion. Expected to grow at better pace than large caps in 2026 after long period of underperformance. |
Value Growth Cyclical Monetary Policy Fiscal Policy | |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled | |
| 2025 Q3 |
ChinaChina's economic rebalancing appears to be moving forward. Market liquidity, anti-involution and a measured consumer policy are likely to drive a sustained market performance in 4Q. Fiscal support and ongoing reforms in China is supportive of a stronger currency. |
Growth Policy Currency |
| 2025 Q2 |
CapitalPreservation |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 29, 2026 | Fund Letters | Mark Landecker | MSFT | Microsoft Corp. | Information Technology | Systems Software | Bear | NASDAQ | AI, cloud, earnings growth, Multiple-Risk, valuation | Login |
| TICKER | COMMENTARY |
|---|---|
| ADI | Best economics in analog: 70%+ gross margins, 45–50% EBIT target, rising ROIC. Premium positioning: 4X average selling prices, mission-critical sockets, extreme switching costs. Hybrid manufacturing edge: ~5% capex vs. peers 15%+ → superior free cash flow + resilience. Maxim synergies: power + systems mix shift, margin accelerator. Secular and cyclical tailwinds: industrial automation, EV electrification (wireless battery management system), AI data center power & test, 100% ADI alpha hit rate~39% annualized returns in past upcycles and we believe 2Q25 marked the restart; pricing + margin inflection underway. |
| AMZN | One company we own that we think has unique positioning to benefit from both the infrastructure and application layers is Amazon. Amazon's logistical prowess is one of the foremost moats in business today and it can and will be enhanced with AI. The company will do this in multiple ways, with better orchestration of its logistics assets and underlying cargo, as well as the buildout of more capable, sophisticated and robust robotics. Amazon is singularly well positioned to dominate the coordination layer, with AI's help, across its entire logistics network. |
| AVTR | We added a partial position of Avantor to the portfolio in the second half of the year after (and then while) the company had some self-inflicted ups and downs. It is probable that the worst is in the past for Avantor after a leadership change and guidance reset, but we felt it best to exit and book a loss before year end. |
| BDX | Our positions in Alphabet Inc. class C capital stock (NASDAQ: GOOG) and Becton, Dickinson and Company common stock (NYSE: BDX) made notable positive contributions during the quarter. BDX gained 3.7%. During the quarter, we added to our position in Becton, Dickinson and Company common stock (NYSE: BDX). |
| C | Money center bank Citigroup rose amid strong capital markets activity and benign credit conditions. The company continued to repurchase stock and return capital to shareholders, while expenses related to its transformation are expected to decline next year. |
| CHTR | Weakest performers included Charter Communications (-24%) |
| CMCSA | Within the portfolio, stocks like AutoZone, Comcast, and Zoetis were all punished for having perceived headwinds to already lowered expectations for growth. |
| CRM | By looking at their Rnancials, FactSet, PayPal, Adobe, and Salesforce seem to be doing Rne. The market, however, is reading subdued revenue growth as a sign of increased competition on their core oSerings. These companies' outlooks look more di'cult than their past. |
| GOOGL | In the third quarter, Google, Kairos Power, and the Tennessee Valley Authority announced a major collaboration centered on a novel power purchase agreement. Google followed this announcement with another significant step forward. On October 27, Google and NextEra Energy announced plans to restart the Duane Arnold Energy Center. |
| HEIA.AS | Heineken (+8%) |
| IFF | Poor management has plagued International Flavors & Fragrances for years. As a leading producer of food, beverage, scent, home and personal care, and health products and ingredients, its products are ubiquitous across many household staples. Prior management's reckless capital allocation and ineptitude at managing its diverse global enterprise, transforming a high-margin, unlevered company into one with a lower margin and a higher level of leverage. We have a constructive view of the new CEO, who has renewed the company's focus on being a best-in-class operationally with a smaller product suite. We believe that their current $4 of free cash earnings could increase to $5-6 in a few years, and if successful, their P/E should also rise. With its stock currently at $67, a reasonable downside could be around $60, and its upside could be around $125. |
| JEF | questions emerged around Jefferies' potential exposure to the First Brands bankruptcy, and we exited the remainder of the position that we began trimming in January |
| KMX | Over the past five years, CarMax's shares declined by 62%, while Carvana's shares rose by 73%, leaving CarMax's market capitalization at roughly one-tenth of Carvana's today. |
| META | On January 9, Meta Platforms unveiled a new agreement with Vistra—the largest generator of competitive electricity in the United States—as well as with TerraPower and Oklo. The announcement builds on Meta's agreement last year with Constellation Energy and positions the company to become one of the largest corporate purchasers of nuclear-generated electricity in the United States. |
| MSFT | MSFT was a detractor in 4Q25 following its fiscal first-quarter 2026 earnings report released on October 29. While results were better than expected operationally, investor reaction was driven by guidance and capital expenditure intensity rather than headline performance. Revenue grew 17% year-over-year, exceeding consensus expectations, and Azure revenue increased 39% year-over-year, also ahead of estimates. However, management guided to a sequential deceleration in Azure growth in fiscal Q2, signaling some moderation after a period of exceptional demand. |
| NOW | In the case of ServiceNow, the stock weakened following reports of a potential large acquisition while the company has also been challenged by bearish sentiment across the software as a service or SAAS segment. |
| NTDOY | Nintendo delivered yet another solid quarter — this time despite a swirl of concerns around the Switch 2's holiday performance. The noise began with questionable 'third-party data' suggesting U.S. holiday sales were running roughly 35% below the original Switch's comparable 2017 period, spooking 'investors' and raising questions about whether the $449 price point was capping demand. Those fears only intensified after Walmart ran Cyber Monday promotional markdowns that were widely — and incorrectly — interpreted as company-led price cuts (Nintendo doesn't discount its hardware). We've decided to save our thoughts on recent concerns on memory pricing for a separate piece, but suffice it to say, the proximate causes behind the latest rounds of false panic in Nintendo's equity almost defy description. |
| ORCL | Investor enthusiasm for Oracle's stock in calendar year 2025 was initially driven by several multi-billion-dollar contracts it signed with leading AI companies, including OpenAI and Meta. However, in Q4 sentiment for ORCL's growth prospects shifted to skepticism, as investors began to scrutinize the return profile of the substantial capital investments required to support the approximately $500 billion of contracts signed by Oracle. Given the widening range of potential outcomes associated with Oracle's elevated capital needs, we reduced our position in ORCL during Q4. |
| SAF.PA | Safran, buoyed by robust aerospace and aftermarket parts demand, reported record profits for the prior year in early 2025. As global air traffic continued to recover and air carriers ramped up maintenance projects, the company saw stronger aftermarket growth and converted operational efficiency gains into higher earnings, prompting management to raise full-year guidance for 2025. |
| SAP | We trimmed SAP SE. |
| SNOW | Snowflake is a popular cloud-based platform that provides comprehensive data warehousing services, mainly for large businesses. By being cloud native, Snowflake helps companies more easily store, analyze and share their data across an entire organization, which has become a crucial ingredient for companies prioritizing IT infrastructure upgrades that can incorporate more AI functionality. A recently expanded partnership with Anthropic highlights how the company is quickly deepening its AI capabilities. Competition is fierce, but Snowflake has become the leading player in cloud data storage, especially for those companies looking for an agnostic solution that can support the multiple hyperscalers that many companies employ. Snowflake's unique and dominant position in the data warehousing market, in what should be a high-growth profitable and sticky business over time, makes the company an attractive investment. |
| TEL | Longtime holding TE Connectivity benefitted in 2025 from continued demand growth in several of the markets in which it sells into, including: AI infrastructure and data center connectivity; energy and grid update cycling; and industrial automation. TE also acquired Richards Manufacturing earlier in the year, which helped strengthen the company's competitive position in industrial and utility markets, and raised the dividend throughout 2025. |
| WDAY | Finally, we have exited our relatively small position in Workday. The company's growth has decelerated the past few quarters and the Financials segment of the business (~25% of sales) is growing slower than we believe it should be. This is a company we may revisit at a later date but, for now, feel that we have better opportunities in other areas of the portfolio. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
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