BKNG - FPA Crescent Fund Q2 2021 Commentary

• The Fund seeks to generate equity-like returns over the long term, take less risk than the market and avoid permanent impairment of capital. We invest across capital structure, geographies, sectors.
• The FPA Crescent Fund – Institutional Class gained 3.26% in 2021’s second quarter and 39% for the trailing twelve months. The Fund generated 97.4% of the average of the S&P 500 and MSCI ACWI’s return in the trailing twelve months, outperforming its own 77.8% average net risk exposure.
• Though the portfolio will not be immune to the next selloff, whenever it may arrive, we remain committed to seeking equity-like returns over the long-term while avoiding permanent impairment of capital.
• However, what we find particularly interesting is that some of the better performing names required significant patience, with 30% of the observations compounding at 20%+ per year from our first purchase despite multi-year periods of flat performance during our ownership.

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