Romick Keys on Large Caps, Cautiously

Top fund manager Steven Romick says large-cap stocks are offering better values than other options, and is positioning his portfolio to weather a pullback.

“Large-cap companies are a much greater value, certainly than bonds,” Romick tells the Los Angeles Times, The Times says Romick has about 60% of his portfolio in stocks, “dominated by big names such as Wal-Mart, Occidental Petroleum Corp., Amgen Inc. and PetSmart Inc.” He has 23% of the fund in cash, with the smallest portion in bonds.

Romick tells The Wall Street Journal, meanwhile, that the economic recovery is real, but could come with repercussions. “The recovery is real; there are very real reasons why there is growth,” he says. “There will also be very real ramifications for the manner in which that growth was achieved.”

In terms of investing approach, Romick seems to be cautious. The Journal says he “generally disagrees with the prevailing notion that people should just be full-on in the market and has been picking investments that he believes will better weather a pullback.”

“I’m not good at the game of musical chairs,” he said. “Unless you’re the biggest guy playing the game and can knock other kids off their seat, it doesn’t work.”

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