FPA Crescent (FPACX) Fund Makes Some Interesting Emerging Market Stock Bets (Kiplinger)
Kiplinger has a profile of the FPA Crescent Fund (MUTF: FPACX), which can invest almost anywhere in the world and in nearly any kind of asset, but whose managers (Steve Romick, Mark Landecker and Brian Selmo) tilt toward deeply out-of-favor sectors and try to buy stocks that they believe are trading at steep discounts to the value of the underlying companies. However and because stock and bond prices have risen so much over the past year, 46% of the fund’s assets are parked in cash, but the managers have found some pockets of value in the following emerging market stocks:
- Lukoil (OTCMKTS: LUKOY), the Russian energy giant, because the Ukraine crisis has left its shares too cheap to ignore. Landecker says Lukoil is a safer bet than other Russian stocks because it has a long history of paying generous and rising dividends; the company’s leaders are increasing their personal stakes in the company which is also buying back its own stock; and its products are exported throughout Europe – providing a revenue stream that is divorced from the ruble.
- Jardine Matheson Holdings (OTCMKTS: JMHLY) and one of its businesses, Jardine Strategic Holdings (OTCMKTS: JSHLY). The pair are akin to a Chinese Berkshire Hathaway because they own businesses in everything from commercial real estate to insurance, manufacturing and retail. Both firms also have a long history of delivering double-digit-percentage earnings growth.
To read the whole article, FPA Crescent Fund Moves into Emerging Markets, go to the website of Kiplinger.
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- Russian Equities are at “Too Big a Discount” (CNBC)
- Pick Stocks, Not Countries, in Emerging Markets (FE Trustnet)
- Who Are Russia’s Middle Class? Some Facts and Figures (MT)
- Coutts CIO: Russian Stocks Now Appear Attractive (FE Trustnet)
- Russian Stocks and the Ruble to Remain Under Pressure (Capital Economics)
- British Investment Managers Increase Their Emerging Market Bets (Reuters)
- Sanctions Will Impact Russian Arctic, Deepwater & Shale Oil Exploration (FT)
- Artemis’ Edelsten: Emerging Markets are Expensive With the Exception of China (What Investment)
- Best Consumer Stocks for Emerging Market Investors (Morningstar)
- Franklin Templeton’s $7.6bn Bond Bet on the Ukraine is 6X Bigger Than its Russian Bond Holdings (EM)
- Hong Kong Stocks Roar Into 2021 on Surge of Investment From China (Nikkei Asia)
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