GuruFocus Updates 27 July 2011 Featured 62 Comments

By teddycx. Robert Rodriguez has been the manager of the FPA Capital Fund and the FPA New Income Fund since their inceptions in 1984. He primarily invests in small and mid cap companies, selecting stocks on a fundamental basis. He looks for strong balance sheets, good free cash flow numbers, an understandable business strategy, capable management, and unique business characteristics. He utilizes many metrics in his analysis, targeting companies with low price/normalized earnings, low price/pretax cash flow, low price/book value, low price/replacement value, low market cap/total revenues, and high return on equity. He sells when the stock is selling at a premium P/E to the market, when the basis for the investment has been revised, when management disappoints without expectation of recovery, or when a superior alternative value is available. Read more » »