Rodriguez, who runs the $1.1 billion FPA Capital Fund, puts most of his money into two or three industries at a time, has stopped taking new investors for 12 of the past 14 years and has held as much as 46 percent of assets in cash. His 15 percent average annual return since 1984 is best among diversified
The 60-year-old says he looks for companies with a market value of $1 billion to $4 billion that sell at what he considers bargain prices, and holds cash if he can’t find enough stocks that meet his criteria. That strategy helped Rodriguez limit losses from the technology stock bubble in 2000 and the credit crisis that started in 2007.
“People told me, ‘You are not paid to manage cash,’ ” he said in a telephone interview from his home in Zephyr Cove,
As a student at the
Rodriguez has criticized rival fund managers for selling products based on marketing considerations instead of investment opportunities. Rather than attract more money than he’s comfortable investing, Rodriguez said he keeps the fund closed to new investors.
Rodriguez will begin a one-year sabbatical in January that had been planned since 2003. FPA Capital will be run by Dennis Bryan and Rikard Ekstrand during that period, both of whom are portfolio managers on the fund. Rodriguez said he will keep his money in FPA’s funds.
In his year off, Rodriguez plans to travel and read books, including “Democracy in