AdvisorOne Interview's Bob Rodriguez
Found via GuruFocus.
Invigorated after a year-long sabbatical, renowned fund manager Robert Rodriguez, CEO of First Pacific Advisors, sternly warns that markets and the economy are threatened by the government’s tardiness in addressing fiscal reform. Unless restructuring begins within seven months, he says, a new financial meltdown will likely befall us in a few years.
Rodriguez, whose firm manages assets of $15 billion, forecast the global financial crisis of 2008-09. In 2007, he moved to a cash level nearly 12 times that of the industry. Today, FPA equity funds are at all-time highs. The compounded rate of return of the FPA Capital Fund, Sept. 30, 2007, through Jan. 31, 2011, was 5.3%. The FPA New Income Fund hasn’t had a down year in 32.
After a 12-month holiday circling the globe, Rodriguez, 62, remains a managing partner of his Los Angeles-based firm. As planned, partners who ran Capital and New Income in his absence continue as day-to-day managers. Rodriguez is an advisor to both funds.
AdvisorOne chatted by phone for more than two hours with the value manager, who makes his office in Lake Tahoe, Nev. Here are excerpts from that conversation:
- A Few Good Reasons To Hoard Some Cash Now - By Jason Zweig
The stock market is near record highs. More money came into U.S. stock mutual funds the week of Oct. 23 than during any other week since 2007. Initial public offerings like Twitter are booming. So have you considered keeping more of your assets in cash?...
- Read History
An additional quote from Bob Rodriguez’s recent speech worth posting: “I met Charlie Munger in my USC graduate school investment class and had the opportunity to ask him this important question, “If I could do one thing to make myself a better...
- European Crisis - Internal Memo From Bob Rodriguez
Found via GuruFocus. Link to: “European Crisis” – An internal memo from Robert Rodriguez on November 30, 2011 highlighting current financial/fiscal problems and maneuvers in Europe ...
- The Best Fund Manager Of Our Time
Robert Rodriguez has accomplished the unheard-of-feat: driving staggering returns in both a stock and a bond fund for more than two decades. -- Fresh out of college in 1971, Rodriguez jumped into the hot growth stocks of the day. "I thought if you couldn't...
- Interview With Rich Pzena: Opportunity Amid The Ruins
IT'S BEEN A DREADFUL YEAR FOR NOTED VALUE MANAGER Rich Pzena, whose funds lost money in 2007, while shares of his newly public management company (ticker: PZN) sank to 12 from more than 22. Blame it in part on the manager's fondness for financial...