FPA Crescent Fund Institutional Shares (FPACX)

Overview

The investment fund focuses on capitalizing on the growth potential of U.S. companies by primarily investing in a variety of equity securities, including common stocks, preferred stocks, and convertible securities. Its investment strategy is not constrained by the capitalization of issuers, allowing for a broad spectrum of investments from small to large companies. This approach is driven by the goal of achieving significant capital growth, leveraging the dynamic nature of U.S. equities to deliver favorable returns to investors.

Products and Services

• Equity Securities

  Investing mainly in equity securities encompasses the acquisition of common stocks, preferred stocks, and convertible securities of U.S. companies. This category represents ownership stakes in corporations, offering potential capital appreciation and income in the form of dividends or stock price increases.

• Common Stocks

  Common stocks provide investors with a proportionate share of ownership in a company, including voting rights and the possibility of receiving dividends. The fund selects common stocks based on their growth prospects, aiming to benefit from the appreciation in stock value over time.

• Preferred Stocks

  Preferred stocks offer a fixed dividend and take precedence over common stocks in the event of liquidation. While they typically offer less potential for appreciation than common stocks, they can provide a steady income stream and less volatility, making them an attractive investment option for the fund’s portfolio.

• Convertible Securities

  Convertible securities are bonds or preferred shares that can be converted into a predetermined amount of the company’s common stock at the discretion of the holder, usually at a specified time. This flexibility allows the fund to benefit from both the security of fixed-income investments and the potential for capital growth through conversion into equity.