Steven Romick’s FPA Crescent fund is in the top 3% of funds in its class over the past 15 years, according to Morningstar, and in a recent interview with Forbes’ Steve Forbes, Romick talked about his strategy. “We are deep value investors,” Romick says. “Our goal is to generate equity rates of return and to do so without assuming the same risk the stock market does. So we want to avoid permanent impairments of capital. So our strategy is to really invest A) across a company’s capital structure — so common stocks, preferred stocks, junior debt, senior debt, bank debt — but as well as in different asset classes,” including farmland and subprime loans. “We’re spread all over the place in terms of different asset classes and different market caps and across the capital structure. But at the end of the day, we focus on one thing. We focus on where the bad news is, where there are poor sellers. Wherever the poor sellers are, that’s where we’re spending our time.” Romick also talks about how the Federal Reserve’s zero-interest-rate policy “perverts” capital allocation decisions, how he thinks assets are currently “at least fairly priced”, and why he’s high on farmland.