Steven Romick Buys Mylan, Adds to 4 Holdings in 2nd Quarter

GuruFocus.com
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- By Holly LaFon

Returns for Steve Romick's FPA Crescent Fund rose 4.38% year to date, compared to the S&P 500, which stretched 8.42%.

But the investor wrote in a first quarter commentary, "Two Decades of Winning by Not Losing," that he prefers to track performance over full market cycles rather than to succumb to "short-termism."

"And short-termism is a breeding ground for all sorts of cognitive dissonance to which smart people fall prey when trying to adapt and join the crowd," he said.


Rather, he aims to focus on fundamental research "on companies that can create value over time," saying some of his best returning positions have been avoiding the right sectors. Romick has beaten the market in every five-year period in which it declined, and had gains in every five-year rolling period.

According to his filing out Monday, Romick bought bought Mylan NV (MYL) and added to stakes in General Electronic Co. (GE), Qualcomm Inc. (QCOM), Cisco Systems Inc. (CSCO) and Meggitt PLC (MGGT.L).

Mylan NV (MYL)

Romick purchased 6,341,690 shares of Mylan in the second quarter, equivalent to 2.52% of his stock holdings. The third quarter average price of Myland was around $38 per share.

Mylan NV has a market cap of $20.22 billion; its shares were traded around $37.72 Monday with a P/E ratio of 36.98 and P/S ratio of 1.7. Mylan NV had an annual average earnings growth of 9.6% over the past 10 years. GuruFocus rated Mylan NV the business predictability rank of 2.5-star.

General Electronic Co. (GE)

Romick added 5,535,600 shares of General Electric, an increase of 87.19% to 11,884,830 shares. The position equals 3.29% of his stock holdings.

General Electric Co. has a market cap of $226.13 billion; its shares were traded around $26.04 Monday with a P/E ratio of 26.85 and P/S ratio of 1.91. The trailing 12-month dividend yield of General Electric Co. stocks is 3.65%. The forward dividend yield of General Electric Co. stocks is 3.67%.

Qualcomm Inc. (QCOM)

Romick added 219,440 shares of Qualcomm, an increase of 10.35% to 2,340,250. The stake is 1.32% of his stock positions. Qualcomm had an average price around $56 per share in the second quarter.

Qualcomm Inc. has a market cap of $82.2 billion; its shares were traded around $55.64 Monday with a P/E ratio of 18.54 and P/S ratio of 3.57. The trailing 12-month dividend yield of Qualcomm Inc. stock is 3.88%. The forward dividend yield of Qualcomm Inc. stock is 4.12%. Qualcomm Inc. had an annual average earnings growth of 12.50% over the past 10 years. GuruFocus rated Qualcomm Inc. the business predictability rank of 4.5-star.

Cisco Systems Inc. (CSCO)

Romick added 833,100 shares to his holding of Cisco Systems, an increase of 8.14% to 11,070,960. The holding is 3.55% of his stock portfolio. The company's average price for the quarter was around $33 per share.

Cisco Systems Inc. has a market cap of $154.9 billion; its shares were traded around $30.98 Monday with a P/E ratio of 15.66 and P/S ratio of 3.22. The trailing 12-month dividend yield of Cisco Systems Inc. stocks is 3.56%. The forward dividend yield of Cisco Systems Inc. stocks is 3.75%. Cisco Systems Inc had an annual average earnings growth of 7.20% over the past 10 years. GuruFocus rated Cisco Systems Inc. the business predictability rank of 4-star.

Meggitt PLC (MGGT.L)

Romick added 1,268,931 shares of Meggitt PLC, an increase of 3.37% to 38,965,308 shares. The holding is 2.48% of his stock portfolio. The company's average price for the quarter was around $5 per share.

Meggitt Plc has a market cap of $3.8 billion; its shares were traded around $4.90 Monday with a P/E ratio of 22.27 and P/S ratio of 1.93. The trailing 12-month dividend yield of Meggitt Plc stocks is 3.08%. The forward dividend yield of Meggitt Plc stocks is 3.08%. Meggitt Plc had an annual average earnings growth of 4.40% over the past 10 years.

See Steven Romick (Trades, Portfolio)'s stocks here.

This article first appeared on GuruFocus.


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