Vanguard ETF: | 7.4%* | ||
Diversified Core: | 8.1%* | ||
Six Core Asset ETFs: | 7.3%* |
Articles on FPPTX
- First Pacific Advisors (FPA) Bob Rodriguez: Another Crash Coming
06/08/2011
Robert Rodriguez is the CEO of First Pacific Advisors (FPA). He managed the famed FPA Capital (FPPTX) and FPA New Income (FPNIX). He was twice named Morningstar's fixed-income manager of the year (2001 & 2008).
After taking a one year sabbatical in 2010, he came back to find that the world was still the same: problems that caused the financial crisis in 2008 had not been resolved. Here are some key points he made in a recent Fortune Magazine's article on Rodriguez:
- U.S. debt as a percentage of GDP ratio (currently 64%) is massively underreported because it doesn't count off-balance-sheet entitlements such as Medicare, and debt owed by Fannie and Freddie. If you factor in those liabilities, the ratio will be over 500%!
- The situation isn't irreparable: both parties are not willing to take drastic measures, let alone we are approaching to the election year.
- FPA Capital (FPPTX) is now 30% in cash (he had that before 2008) and 38% in energy sector (XLE). He refused to buy other sectors and even long term or intermediate term bonds (LQD) (TLT), (IEF).
At the end, as what the article stated: " A former Republican, he describes himself as a "fiscal conservative but social moderate" who has grown disgusted with both parties: "I say, 'A pox on both their houses.'""
The following is the chart of FPPTX vs. VFINX (Vanguard 500 Index):
The following is the performance comparison between FPPTX and Six Core Asset ETFs Tactical Asset Allocation Moderate.
Portfolio Performance Comparison
Portfolio/Fund Name 1Yr AR 1Yr Sharpe 3Yr AR 3Yr Sharpe 5Yr AR 5Yr Sharpe FPPTX 39% 198% 8% 31% 7% 27% Six Core Asset ETFs Tactical Asset Allocation Moderate 16% 128% 9% 79% 15% 104%
See Here for more detailed comparison.See Here for another fund FPA Crecent's recent asset allocation analysis.
Symbols: SPY, TLT, XLE, IEF, FPPTX, FPNIX, VFINX
Exchange Tickers: (SPY), (TLT), (XLE), (IEF), (FPPTX), (FPNIX), (VFINX)