Steve Romick
FPA Crescent fund
Happy shareholders of FPA's $3 billion Crescent Fund can thank Steve Romick's patient strategy for an 11% annualized return since 2000. Romick will sit on hoards of cash as he hunts for values in global stocks, bonds, and convertibles.
Now he's betting higher U.S. interest rates are around the corner, along with possible inflation and a weaker U.S. dollar, driven by more than $6 trillion of government debt that needs to be sold over the next two years.
In that environment Romick likes energy stocks. Occidental Petroleum is a top choice. It's the only U.S. integrated oil company that met its five-year targets in finding new oil and gas, says Romick. "They've got long-life, low-cost reserves," he says. Though shares are up 29% in the past year, they still trade at a nearly 30% discount to peers.
--S.C.
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