FPA Crescent Fund Moves into Emerging Markets

The contrarian managers of this go-anywhere Kiplinger 25 fund invest in Russia's Lukoil and two Hong Kong stocks, plus a battered U.S. aluminum maker.

The managers at FPA Crescent (symbol FPACX) make no apologies for lagging the stock market over the past five years. The trio—Steve Romick, Mark Landecker and Brian Selmo—expect the go-anywhere fund's contrarian strategy to lag the broad market when stocks are hot, as they have been since the end of the financial crisis. But they also expect the fund to outperform by a large margin when times are tough.

Over the long run, that's proved to be a winning combination. From Crescent's inception in 1993 through June 11, the fund, a member of the Kiplinger 25, has topped Vanguard 500 Index fund (VFINX) by an average of two percentage points per year. Over that period, Crescent turned a $10,000 investment into $93,191, compared with just $63,403 for the Vanguard fund, which tracks Standard & Poor's 500-stock index.

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Kathy Kristof
Contributing Editor, Kiplinger's Personal Finance
Kristof, editor of SideHusl.com, is an award-winning financial journalist, who writes regularly for Kiplinger's Personal Finance and CBS MoneyWatch. She's the author of Investing 101, Taming the Tuition Tiger and Kathy Kristof's Complete Book of Dollars and Sense. But perhaps her biggest claim to fame is that she was once a Jeopardy question: Kathy Kristof replaced what famous personal finance columnist, who died in 1991? Answer: Sylvia Porter.