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Bob Rodriguez: The Best Fund Manager of Our Time

Posted by Larry Doyle on December 1st, 2009 11:53 AM |

Listening to and learning from the best makes life worth living. The wisdom proffered by giants within their fields is the equivalent of a fabulous dining experience. Well, on that note, get ready to sip of the finest wine and savor the best steak that the financial industry has to offer. What chef is preparing our meal? The best in the business, an Economic All-Star here at Sense on Cents, none other than First Pacific Advisors’ Bob Rodriguez.

Our dining experience with Mr. Rodriguez last June 1st was nothing short of spectacular as he regaled us with his treatise, Reflections and Outrage. Bring your appetite again as Rodriguez was recently interviewed by Consuelo Mack.

Why do I think so highly of Bob Rodriguez? His life story resonates with me. I relish his emphasis on integrity, discipline, balance, history, prudent risk, and differentiating oneself.

This clip runs for 25 minutes. If we embrace the wisdom offered by Bob Rodriguez, the lessons can last a lifetime.

High five to MC for sharing this clip. Please share your thoughts on Mr. Rodriguez’s perspectives. If you like what you taste, in the season of giving, please share it with friends and colleagues. They’ll thank you.

LD

“Reflections and Outrage” by Robert Rodriguez: Strongly Recommended Reading

Posted by Larry Doyle on June 1st, 2009 5:00 AM |

Bob Rodriguez, Partner and Chief Executive Officer of First Pacific Advisors, delivered the keynote address the end of last week at the Morningstar Investment Management Conference.

Mr. Rodriguez is a 35 year veteran in the financial industry and a Morningstar Manager of the Year three times. In my humble opinion, there are none better in the industry today. As I referenced on NQR’s Sense on Cents with Larry Doyle last evening, I totally concur and feel strongly about Mr. Rodriguez’s powerful pearls of wisdom. I beseech you to read this address, save it, read it again, and share it with your colleagues!

Allow me to comment and highlight Mr. Rodriguez’s major focal points. Mr. Rodriguez addresses every major issue in our financial world today. He layers those issues on top of the potential social impact our country faces. Mr. Rodriguez is not bashful in highlighting that our day of reckoning is upon us. I have read this piece three different times. I am more impressed and in greater agreement with his assertions after each reading.

Rodriguez addresses the following:

1. the need for personal and professional discipline and integrity

2. he recounts an experience in which he was solicited to “pay to play” by his biggest account . . . he passed and never regretted it

3. he castigates the financial industry for its performance over the last few years (be mindful he delivered this speech to an audience of financial managers!!)

4. he talks about how and why he has made a major shift into energy stocks within his fund!!

5. the changing nature of the markets and the global economies.

6. he rails on Alan Greenspan

7. Rodriguez offers, “my trust has been severely shaken in the Federal Reserve, the Treasury, the Congress, and the Executive Branch of government…”

8. “the regulatory agencies and federal government were complicit in laying the groundwork that allowed many of these credit excesses to develop prior to this economic crisis.”

9. he addresses the horrendous business practices being promoted by GMAC.

10. the positive economic impact of the Stimulus will be offset by ongoing reduction in consumer spending.

11. “we have to be careful about what is meant by sacrifice . . . a democratic government is the only one in which those who vote for a tax can escape the obligation to pay for it.”

12. Rodriguez’s outlook on the market:

   — we are currently experiencing a bear market rally

   — corporate earnings will disappoint

   — the stock market overall will be price constrained for TEN YEARS

   — “I view the Treasury market as being in a bubble territory with foolish leaders at the helm.”

   — the bulk of the economy’s credit problems are still to come as charge-offs on trillions of dollars in loans remain to be recognized.

Reflections and Outrage
by Mr. Robert Rodriguez
Partner and Chief Executive Officer First Pacific Advisors

MUST READ!!

LD

Let’s Meet the 2008 Bond Manager of the Year

Posted by Larry Doyle on April 8th, 2009 3:09 PM |

One of our Economic All-Stars is Bob Rodriguez of First Pacific Advisors. In the spirit of being totally equitable, I should have also posted Tom Atteberry’s name next to Bob’s. Bob and Tom were jointly named 2008 Morningstar Fixed Income Managers of the Year.

Bob is currently taking a leave of absence from First Pacific but Tom is equally outstanding. I had the pleasure of making his acquaintance while I worked at JP Morgan. Tom Atteberry is a pro’s pro. He spoke to Bloomberg earlier today and made these comments, which I took in longhand, so I am not quoting but I listened very carefully. Tom opined:

1. The current environment is the worst time to get into bonds. Why?

2. The creditworthiness of individuals and companies across the economy will only get worse from here and that deteriorating credit is not currently priced into the market.

3. U. S. government debt (Treasuries) represent NO value at current levels. If a fair expected rate of return is between 2-3% and a longer term rate of inflation is also between 2-3%, the rate on a 10 yr. maturity Treasury note should be in the vicinity of 5%. That note is currently trading at 2.85%. Don’t overpay for an asset just because somebody else is, in this case the Federal Reserve. (more…)






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