| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 10.09% | -1.55% | -1.55% |
FPA Crescent Fund declined 1.55% in Q1 2026 but delivered strong 16.06% trailing twelve-month returns with 63.8% average net risk exposure. The fund executed a strategic rotation during the quarter, selling long-held positions in Alphabet and TE Connectivity that have benefited from AI investor favor, while adding to undervalued opportunities including Azelis, a European small-cap specialty chemical distributor, and Becton Dickinson, a medical technology company. This activity reflects the fund's consistent 12-18 month strategy of harvesting gains and recycling proceeds into SMID caps, international names, and healthcare sectors. The team is actively evaluating opportunities in sectors where valuations have become more reasonable compared to a year ago, acknowledging that reduced multiples alone don't guarantee compelling purchases. With net equity exposure of 62.1% and a diversified portfolio of 59% long common stock positions, the fund maintains its disciplined approach to finding undervalued opportunities while building positions in several new names for potential discussion in their midyear letter.
The fund is harvesting gains from long-held positions and recycling proceeds into undervalued opportunities, particularly SMID caps, international names, and healthcare, while maintaining disciplined valuation-driven approach.
The team is evaluating opportunities in sectors where valuations are more reasonable than a year ago, building positions in several names, and expects to provide more details in their midyear letter.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 28 2026 | 2026 Q1 | AON, AZE.BR, BDX, GLEN.L, GOOGL, TEL | healthcare, international, Portfolio Management, SMID Cap, technology, value | - | FPA Crescent rotated from AI winners Alphabet and TE Connectivity into undervalued SMID caps, international names, and healthcare. The fund delivered 16.06% trailing returns while maintaining 63.8% average risk exposure. Management is building positions in sectors with improved valuations, continuing their disciplined value-driven approach to capital allocation. |
| 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 | FPA Crescent delivered strong 2025 returns through value-aware investing, focusing on quality companies at attractive valuations. The fund is actively deploying capital into small to mid-cap global securities, believing these offer asymmetric opportunities for patient investors. Despite elevated market multiples suggesting potential volatility, the managers maintain their disciplined bottom-up approach and long-term investment horizon. |
| Oct 31 2025 | 2025 Q3 | 7974.T, ADI, AMZN, C, CMCSA, FERG.L, GLEN.L, GOOGL, HOLN.SW, IFF, KMX, META, PRX.AS, RI.PA, SAF.PA, TEL, WFC | consumer, financials, global, technology, value | - | FPA Crescent delivered solid Q3 performance with selective global positioning. Alphabet's seventeen-fold gains since 2011 continue despite AI competition concerns, while Citigroup benefits from improved banking fundamentals. CarMax disappointed with management execution issues, but attractive valuation at 12x earnings offers potential upside. The fund maintains disciplined approach targeting undervalued businesses with strong operational prospects. |
| Aug 10 2025 | 2025 Q2 | 7974.T, ADI, AMRZ, AMZN, C, CMCSA, GLEN.L, GOOGL, HEIO.AS, HOLN.SW, ICLR, IFF, META, NXPI, SAF.PA, TEL | Defensive, global, risk management, SMID Cap, value, volatility | - | FPA Crescent delivered solid Q2 returns while maintaining defensive positioning amid elevated valuations and speculative excess. The fund sees better opportunities in small-to-mid cap stocks versus expensive large-cap names, keeping elevated cash levels for deployment during market weakness. Management emphasizes downside protection and longer-term perspective over daily volatility. |
| Mar 31 2025 | 2025 Q1 | ADI, AON, C, CMCSA, FERG, GLEN.L, GOOG, GOOGL, HEIO.AS, HOLN.SW, ICLR, IFF, JEF, KMI, META, TEL | energy, global, Natural Gas, Valuations, value | - | FPA Crescent declined 0.20% in Q1 but gained 7.37% over twelve months. The fund reduced exposure to 63.3% amid high US valuations, taking advantage of higher prices to trim positions. Kinder Morgan benefited from AI data center natural gas demand and LNG policy reversals. Managers maintain defensive positioning while preparing for uncertainty around trade policies. |
| Dec 31 2024 | 2024 Q4 | 003550.KS, AAPL, AMZN, C, CINF, CMCSA, COST, GLEN.L, GOOGL, HEIO.AS, HOLN.SW, IRM, JDEP.AS, JEF, META, MSFT, NVDA, SHW, TSLA, WSO | contrarian, Exposure, global, momentum, risk, valuation, value |
HEIO.AS GLEN.L CMCSA 003550.KS |
FPA Crescent delivered 13.96% returns in 2024 while reducing equity exposure as valuations reached bubble-like levels. The fund's contrarian strategy targets overlooked value in international and smaller US companies amid dangerous market complacency. With momentum stocks dominating and concentration resembling the dot-com era, managers maintain defensive positioning while seeking asymmetric opportunities. |
| Oct 30 2024 | 2024 Q3 | ADI, AMZN, AON, AVGO, C, CHTR, CMCSA, FBIN, GOOGL, HLF, HOLN.SW, IFF, JDEP.AS, JEF, KMX, META, RI.PA, SATS, TEL, VYX | Diversified, global, Long/Short, Opportunistic, risk management, value | - | FPA Crescent delivered solid returns but reduced risk exposure to 68.5%, the lowest since 2019, reflecting disciplined cash building when attractive risk-adjusted opportunities are scarce. The fund added three new positions while exiting five, with Meta, Holcim, and Alphabet driving performance. Managers view current global uncertainty as potentially creating opportunities for patient, logical investors. |
| Jul 31 2024 | 2024 Q2 | ADI, AMZN, AON, C, CHTR, CMCSA, ENT.L, GOOGL, HOLN.SW, IFF, JEF, KMX, META, MSFT, NVDA, TEL | Concentration, growth, large cap, Quality, risk management, value |
HOLN.SW C CHTR KMX |
FPA Crescent delivered solid Q2 returns of 2.67% despite challenging conditions for value investing. The fund maintains its quality-focused value philosophy while reducing risk exposure as market valuations climb. With concentrated holdings in 40-60 carefully selected stocks and defensive positioning, managers position for future opportunities as value investing faces an existential moment. |
| May 10 2024 | 2024 Q1 | 3659.T, 9988.HK, ADI, AMZN, AON, AVGO, C, CHTR, CMCSA, FERG, GBLB.BR, GOOGL, HLF, HOLN.SW, IFF, JDEP.AS, JEF, KMX, META, TEL | global, Opportunistic, Quality, value | JDEP.AS | FPA Crescent delivered strong returns of 5.93% in Q1 and 20.46% over twelve months, driven by technology holdings like Meta and Alphabet. Managers are upgrading portfolio quality by selling expensive positions and buying higher-quality assets at better valuations, acknowledging reduced market opportunities since 2022 but remaining optimistic about their quality-focused approach. |
| Jan 31 2024 | 2023 Q4 | AMZN, AVGO, FE, GOOGL, HOLN.SW, IFF, META | Concentration, global, large cap, Quality, technology, Valuations | - | FPA Crescent delivered strong 20.27% annual returns while reducing risk exposure as valuations became less attractive. The fund's quality-focused approach and global flexibility position it well against concentrated mega-cap markets. Technology holdings Meta and Alphabet drove performance through AI developments and operational improvements, while the managers maintain disciplined valuation standards and bottoms-up security selection. |
| Sep 30 2023 | 2023 Q3 | ADI, AIG, ATVI, AVGO, CHTR, CMCSA, GOOGL, HLF, HOLCIM, IFF, JEF, KMX, META, NFLX, SBNY | credit, Long/Short, Multi Asset, risk management, value | - | FPA Crescent delivered 0.65% in Q3 2023 through a value-oriented, multi-asset strategy. The fund reduced net risk exposure while increasing credit allocation, with communication services, financials, and technology as top sectors. Portfolio activity included Treasury additions and selective exits, maintaining focus on capital preservation and high-quality opportunities. |
| Apr 27 2023 | 2023 Q1 | ADI, HLB GR | - | - | |
| Nov 2 2023 | 2022 Q4 | AIG, AMZN | - | - | |
| Apr 11 2022 | 2022 Q3 | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
AIThe fund sold positions in Alphabet and TE Connectivity, which are favored by investors for their AI exposure. This represents a harvesting of gains from AI-related holdings rather than adding to AI exposure. |
Artificial Intelligence Technology Alphabet TE Connectivity |
ValueThe fund is actively recycling proceeds from long-held positions into what they perceive to be undervalued opportunities, particularly SMID caps, international names, and healthcare. They are evaluating opportunities in sectors where valuations are more reasonable than a year ago. |
Undervalued Opportunities SMID Cap International Healthcare | |
Small CapsThe fund has been recycling proceeds into SMID caps as part of their strategy to find undervalued opportunities. They added to Azelis, a small-cap European specialty chemical distributor. |
SMID Cap Small Cap Azelis European | |
| 2025 Q4 |
TechnologyThe Fund invests at least 80% of net assets in technology companies across multiple sub-industries including IT consulting, internet services, application software, communications equipment, semiconductors, and interactive media. The portfolio focuses on companies with sector-leading cash flows, attractive valuations, and sustainable profitability prospects. |
Software Hardware Semiconductors Internet Communications |
| 2025 Q3 |
AIAlphabet continues to enhance its existing search offering with new AI features that have been well-received and are continually evolving. Recent concerns include competitive threats in search, stemming from competing AI models, as well as antitrust scrutiny in the US and Europe. |
Search Competition Antitrust Features Technology |
CloudThe fund expects Alphabet's cloud offering to continue to grow and eventually achieve the higher margins of its larger peers. This represents a significant growth opportunity for the company. |
Growth Margins Competition Infrastructure | |
AutosCarMax, the largest retailer of used cars in the US, has been a disappointment with management making a series of missteps including withdrawing 2030 unit sales targets and overbought inventory at elevated prices. The company's share price appears inexpensive trading at roughly 12x forward consensus earnings and 1.1x tangible book value. |
Used Cars Retail Valuation Management Inventory | |
| 2025 Q2 |
ValuationsValuations remain above average, partly justified by lower-than-average interest rates. US companies continue to trade more expensively relative to their historical average and when compared to those based outside the US. Large-capitalization stocks, particularly those that are growthier, have captured the minds and wallets of investors and now trade at unusually high valuations. |
Multiples P/E Premium Expensive Historical |
Small CapsThe intersection of risk and reward is more attractive today in small and medium-sized companies. Excessive attention to large-cap has created opportunities in small- to mid-cap shares versus large-cap. SMID shares offer better downside protection should either growth be less than expected or valuation multiples contract. |
SMID Mid Cap Opportunity Risk Reward Relative Value | |
Risk AppetiteWhen people become excited about market prospects, they tend to assume more risk through paying higher multiples, increasing risk exposure, or using leverage. This year is the second-largest inflow year into leveraged equities. Riskier option volumes have hit new highs and retail investors have ramped up investments in leveraged equity funds. |
Leverage Speculation Options Retail Inflows | |
VolatilityThe first half of 2025 brought higher volatility, with markets declining 16-19% in a few days in April from February peaks. Anchoring to daily pricing fluctuations can cause unnecessary stress and lead to decisions that may reduce returns. The importance of a longer time frame should help reduce stress caused by market volatility. |
Drawdown Fluctuations Stress Time Horizon Daily Pricing | |
| 2025 Q1 |
ValuationsThe fund spoke to generally high stock valuations, particularly in the US, and took advantage of higher prices by reducing and selling some positions. With fewer appealing opportunities to redeploy capital, the fund's net exposure decreased significantly. |
Valuations Pricing Opportunities |
Natural GasKinder Morgan benefited from consensus that AI data centers will require significant increase in US natural gas consumption, and the new administration reversed the previous ban on LNG development, contributing to strong stock performance. |
Natural Gas LNG Energy Infrastructure | |
| 2024 Q4 |
MomentumMomentum stocks have led the market, particularly in 2024. According to Morgan Stanley, momentum ruled more than any other factor, with high momentum stocks outperforming low momentum by +28% year-on-year as of Dec 11th, a two standard-deviation event. The current momentum run is one of the top momentum runs since 1995. |
Momentum Outperformance Factor Stocks Market |
CryptoMomentum's gravitational pull can bring lesser planets into its orbit, as is the case with cryptocurrency which had a big year. We find it hard to believe that you can earn money by telling fart jokes, yet there's a billion-dollar market for the crypto FART COIN. This likely suggests that caution is warranted, though we don't know what or when things might implode. |
Cryptocurrency Speculation Bubble Caution Volatility | |
ValueA more expensive US market does not mean all stocks are expensive. We continue to find potentially better value overseas and in small and medium-sized US companies. Crescent's diversified equity portfolio trades at 15.8x projected earnings and 2.1x book value, with 22% expected earnings growth over the next three years. |
Value Valuation International Small Caps Earnings | |
Risk AppetiteGood stock market performance tends to breed investor complacency. Today, the largest proportion of investors since the Great Financial Crisis believe that there is less than a 10% probability of a stock market crash. Believing that little can go wrong creates the danger that one can lose more than they believe possible. |
Complacency Risk Crash Sentiment Danger | |
| 2024 Q3 |
CoffeeJDE Peet's stock has declined over the past twelve months despite largely stable earnings. Record-high coffee bean prices and headwinds from the company's Russia business have led investors to view the glass as half-empty. The fund is hopeful that new management will prove up to the task of making entrepreneurial and cost-efficient investments to reinvigorate growth and put JDE Peets in a position to benefit from its position as the world's second-largest consumer coffee company. |
Coffee JDE Peet's Management Growth Consumer |
| 2024 Q2 |
ValueThe fund emphasizes value investing philosophy, noting that value managers have struggled significantly over the past decade with Value underperforming Growth by substantial margins. Many investors have capitulated and fired their Value managers, with some converting to Growth strategies. |
Value Growth Underperformance Philosophy Investing |
QualityThe fund has migrated over time to businesses of higher quality, reversing from price first and quality second to quality being the first line of defense. They focus on companies with protective moats, good returns on capital, and opportunities to attractively reinvest capital. |
Quality Moats Returns Capital Defense | |
Risk AppetiteThe fund's net risk exposure moves inversely with the stock market, generally leaning into market weakness that brings lower valuations and pulling back when valuations make risk/reward less attractive. With market valuations higher, Crescent's net risk exposure has declined. |
Risk Exposure Valuations Market Inverse | |
| 2024 Q1 |
CoffeeJDE Peet's is the second largest coffee business in the world, currently navigating challenges including effects of war on Russian business, pandemic impact on out-of-home demand, and massive inflation in coffee prices. Management has struggled with these challenges leading to CEO replacement. |
Coffee Inflation Turnaround |
| 2023 Q4 |
ConcentrationA small number of mega-cap companies drove stock prices last year. The Magnificent Seven stocks ended the year with an aggregate market cap of almost $12 trillion, more than the U.K., Canadian, and Japanese stock markets combined. Their 111% return in 2023 accounted for approximately 75% of the 26.3% total return in the S&P 500. |
Mega Cap Market Concentration Magnificent Seven Large Cap |
ValuationsToday's less attractive valuations, particularly in the U.S., help explain the Fund's slightly lower risk exposure. Crescent's equity investments trade at lower valuations than the Magnificent Seven, MSCI ACWI, and S&P 500, as reflected in the lower Price/Book and Price/Earnings ratios. The fund focuses on quality at fair prices rather than price without quality. |
Price Earnings Price Book Quality Fair Value | |
AIMeta has positive optionality that it will emerge from the AI arms race as one of the leading players in the industry. Alphabet continued going from strength to strength during 2023 despite concerns that competition may infringe on the company's dominant position in Search, and the company is incorporating further AI developments across the Alphabet ecosystem. |
Artificial Intelligence Technology Search Digital Platforms | |
| 2023 Q3 |
CreditCredit exposure increased during the quarter. While high-yield bonds do not look as attractive as they did earlier in the year, the fund continues to search for opportunities that meet their risk/reward criteria. |
High Yield Credit Bonds Risk Reward |
| 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 |
| Jan 28, 2025 | Fund Letters | FPA Crescent Fund | HEIO.AS | Heineken Holding NV | Consumer Staples | Brewers | Bull | Euronext Amsterdam | Brewers, consumer staples, Developing Countries, dividend, Emerging markets, Global, market leader, Share Buybacks, Value | Login |
| Jan 28, 2025 | Fund Letters | FPA Crescent Fund | GLEN.L | Glencore PLC | Materials | Diversified Metals & Mining | Bull | London Stock Exchange | China, coal, Cobalt, Commodities, Copper, Cyclical, energy transition, Free Cash Flow, Mining, Nickel, share repurchases, Value, Variable Dividend | Login |
| Jan 28, 2025 | Fund Letters | FPA Crescent Fund | CMCSA | Comcast Corporation | Communication Services | Cable & Satellite | Bull | NASDAQ | Asymmetric Risk, broadband, cable, Fixed wireless, media, Pricing power, Subscriber Growth, telecommunications, Value, wireless services | Login |
| Jan 28, 2025 | Fund Letters | FPA Crescent Fund | 003550.KS | LG Corp | Industrials | Industrial Conglomerates | Bull | Korea Exchange | Asymmetric Risk, Chemicals, consumer goods, Cosmetics, dividend yield, holding company, Korean Conglomerate, Korean Discount, share repurchases, Single Digit Multiple, Value | Login |
| Jul 25, 2024 | Fund Letters | FPA Crescent Fund | HOLN.SW | Holcim Ltd | Materials | Construction Materials | Bull | SIX Swiss Exchange | aggregates, Building materials, Cement, construction materials, dividend, infrastructure, Share Buybacks, spin-off, Switzerland | Login |
| Jul 25, 2024 | Fund Letters | FPA Crescent Fund | C | Citigroup Inc | Financials | Diversified Banks | Bull | NYSE | banking, capital returns, Global Banking, Institutional Banking, restructuring, tangible book value, Value | Login |
| Jul 25, 2024 | Fund Letters | FPA Crescent Fund | CHTR | Charter Communications Inc | Communication Services | Cable & Satellite | Bull | NASDAQ | broadband, cable, capital expenditure, Converged Services, Fiber Competition, Fixed wireless, leverage, Share Buybacks, telecommunications | Login |
| Jul 25, 2024 | Fund Letters | FPA Crescent Fund | KMX | CarMax Inc | Consumer Discretionary | Specialty Retail | Bull | NYSE | Automotive Retail, customer experience, Data Analytics, Financing, market share, No-haggle Pricing, Omnichannel, Specialty retail, Used cars | Login |
| Apr 25, 2024 | Fund Letters | FPA Crescent Fund | JDEP.AS | JDE Peet's N.V. | Consumer Staples | Packaged Foods & Meats | Neutral | Euronext Amsterdam | Beverages, Coffee, Commodity Inflation, consumer staples, Europe, Management Change, Post-Pandemic Recovery, turnaround, Value | Login |
| TICKER | COMMENTARY |
|---|---|
| GOOGL | During the past quarter our two largest sales were Alphabet, and TE Connectivity, positions we have held for well over a decade, and which presently share the benefit of being favored by investors for their exposure to artificial intelligence. |
| TEL | During the past quarter our two largest sales were Alphabet, and TE Connectivity, positions we have held for well over a decade, and which presently share the benefit of being favored by investors for their exposure to artificial intelligence. |
| AZE.BR | During the past quarter our two largest purchases were additions to existing positions - Azelis, a small-cap, European-based specialty chemical distributor, and Becton Dickinson, a US-based medical technology company. |
| BDX | During the past quarter our two largest purchases were additions to existing positions - Azelis, a small-cap, European-based specialty chemical distributor, and Becton Dickinson, a US-based medical technology company. |
| GLEN.L | Glencore functions as one of the largest mining and trading operations in the world, highly leveraged to materials like copper, zinc, and coal, which spiked amid supply disruptions and strong global demand. Shares of Glencore stock rose after reports of a potential merger with Rio Tinto, which subsequently failed to materialize. The company later announced it would return $2 billion to shareholders through cash distributions, following ongoing share repurchases throughout most of 2025. |
| AON | Longtime holding Aon is among the world's leading providers of insurance/reinsurance brokerage and human resources solutions. The company reported slowing organic revenue growth for 2025, which led to a slew of sell-side downgrades that pressured the stock price. Aon currently trades at an undemanding multiple of earnings and maintains a long track record of opportunistic acquisitions that have created value for shareholders over time. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
