Interview with Steve Scruggs, Portfolio Manager of the FPA Queens Road Small Cap Value Fund

Jun 19, 2024

Guest Steve Scruggs, Portfolio Manager of FPA Queens Road Small Cap Value Fund, discusses investment criteria, portfolio management philosophy, Four-Pillar investing framework, Mittelstand concept, small-cap valuations. Also covers insights into lead portfolio manager responsibilities, monitoring portfolio process, Midelstand companies, small team dynamics, valuation methods, MSC Industrial Direct investment thesis, and the art of reading and learning in investing.

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Intro

00:00 • 2min

Success of FPA Queens Road Small Cap Value Fund

01:57 • 19min

Insights into Lead Portfolio Manager and Analyst Responsibilities in Investing

20:45 • 3min

Monitoring Portfolio and Investment Process

24:08 • 12min

Exploring the Midelstand concept and its impact on businesses and economies

36:27 • 2min

Small Team Dynamics and Investing Philosophy

38:46 • 24min

Investment Thesis and Potential for Growth at MSC Industrial Direct

01:03:09 • 8min

The Art of Reading and Learning in Investing

01:11:34 • 5min

About the FPA Queens Road Small Cap Value Fund

What criterial he looks for when investing in a business

Portfolio management philosophy and cash position

Being a generalist

Avoiding making macro predictions

The research process and industries he tends to avoid

His four-pillar investing framework and research process

Valuation and DCF modeling

What he looks for in management and corporate culture

The concept of Mittelstand and how he incorporates it into his process

His thoughts on current small-cap valuations and free cash flow yields

Discussion on MSC Industrial Direct (NYSE: MSM)

What he’s reading

The investors he admires

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