Brian Selmo of First Pacific Advisors - An Unconventional Approach to Building Your Portfolio

Dec 14, 2021

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The economy is changing. Markets are shifting. As you make decisions about retirement or other long-term goals, it's important to think about the types of investments that will be appropriate for those goals. How does focusing on conventional investment strategies limit your potential to succeed?

In today’s episode, Rusty and Robyn talk with Brian Selmo, Partner and Portfolio Manager at First Pacific Advisors (FPA).

Prior to joining FPA, Brian was the founder and managing member of Eagle Lake Capital as well as an analyst at Third Avenue Management and Rothschild, Inc. With his extensive experience in the financial services industry, Brian is well versed in formulating strategies that will adapt to the world's ever-changing economy.

Brain talks with Rusty and Robyn about FPA Crescent Fund, why it is different from other asset allocation funds, and how it works in the financial markets.

Key Takeaways

[03:50] - Brian's role at FPA.
[06:32] - The qualities FPA looks for in an analyst.
[09:42] - What sets Crescent Fund apart from other asset allocation funds.
[13:13] - How Crescent Fund manages its three different types of equity investments.
[16:23] - Crescent Fund’s unique investment strategy.
[20:19] - Why FPA's Crescent Fund is more net long than usual.
[27:16] - Qualities of a good financial manager.

Quotes

[10:18] - "We don't start from a position of trying to fit in a box. I think our overarching idea or goal is to treat the fund as if it was 100% of a wealthy family's assets and to manage it accordingly." - Brian Selmo

[21:31] - "When we own on average higher-quality businesses, we want to be more fully invested than if you own a portfolio of lower quality, more cyclical businesses at a different point." - Brian Selmo

[26:03] - "I think the world is constantly changing and evolving and you have to respond to it as it exists, not try to look at it through the rearview mirror." - Brian Selmo

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3031-OPS-12/1/2021