To generate rates of return with less risk than the overall market, one portfolio manager suggests diversifying across a basket of asset classes.
The majority of the FPA Crescent Fund is invested in equities, followed by a 30 percent holding in cash. The fund also invests in high-yield bonds, farmland and short positions, said Steven Romick, its portfolio manager.
Renault and Omnicare are among the firm’s holdings.
“What we generally tend to do is to look for dislocation in the markets,” he said. “So we’re looking for that which is out of favor, and there’s a lot that’s out of favor in Europe, particularly in the European automotive business.”