Bob Rodriguez CEO of First Pacific Advisors on RISK

[haha]

This is Bob Rodriguez speech in June of this year.


"My talk today, Absence of Fear, is a follow up and expansion of the Special Commentary section that appeared in my March 31, 2007 shareholder reports. It will focus on the concept of RISK since there appears to be little concern about risk in the financial markets currently. My goal is not to scare or sensationalize, but to get investors to consider various risks and ask the basic question, “Am I being sufficiently compensated for these apparent risks?” "

FPA News Article

Ha

 

[wildcat]

This is Bob Rodriguez speech in June of this year.


"My talk today, Absence of Fear, is a follow up and expansion of the Special Commentary section that appeared in my March 31, 2007 shareholder reports. It will focus on the concept of RISK since there appears to be little concern about risk in the financial markets currently. My goal is not to scare or sensationalize, but to get investors to consider various risks and ask the basic question, “Am I being sufficiently compensated for these apparent risks?” "

FPA News Article

Ha

I often read his Q reports Ha. Always a good read. BTW, his shop runs a closed end fund you can buy, it charges a fraction of the cost to own his mututal funds & it is currently trading at a discount for the first time in many years.

 

[Dawg52]

Ha,

A few months ago you said your allocation was at a 60/40 stock/bond blend. Still maintaining this ratio?

 

[haha]

Ha,

A few months ago you said your allocation was at a 60/40 stock/bond blend. Still maintaining this ratio?

Pretty close. However if I back out my Japanese shares and my oil and gas related shares, I only have about 15% equity. Not sure that this is a valid exercise or not.

Also, I carry puts and I have some short exposure to junk bond markets.

Ha

 

[Moemg]

Thanks Ha .That was an interesting read.

 

[haha]

I often read his Q reports Ha. Always a good read. BTW, his shop runs a closed end fund you can buy, it charges a fraction of the cost to own his mututal funds & it is currently trading at a discount for the first time in many years.

Yes, I have owned Source Capital and it's interesting preferred Source Cap Pfd. It was managed by an outstanding guy named George Michaelis who I believe tragically fell off a mountain while climbing some years ago. I can't find reference to his death on the web, but at least he is no longer manager of Source Capital

Here is a profile of Michaelis as a manager.


http://www.streetstories.com/george_michaelis.html

These kind of guys are a bit out of fashion recently, but IMO their day will return.

Ha

 

[Webzter]

Michaelis sounded like my kind of fund manager.

 

[haha]

Although his is not a closed end fund, look at David Winter at Wintergreen.

Another very solid manager.

Ha

 

[wildcat]

Yes, I have owned Source Capital and it's interesting preferred Source Cap Pfd. It was managed by an outstanding guy named George Michaelis who I believe tragically fell off a mountain while climbing some years ago. I can't find reference to his death on the web, but at least he is no longer manager of Source Capital

Here is a profile of Michaelis as a manager.


http://www.streetstories.com/george_michaelis.html

These kind of guys are a bit out of fashion recently, but IMO their day will return.

Ha

Nice investment on your part Ha. I agree with your out of fashion assessment and that is probably why they closed so many funds to new investors. Bob just can't find places to put money to work.

I don't own anything FPA offers but I do follow the shop and IMHO they really stick to their value roots.