FPA Crescent Fund on Intuit Inc.
Thesis
FPA bought Intuit during the quarter while seeking opportunities in businesses with more supportable long-term valuation math than the most expensive market leaders. The fund says its recent purchases are industry leaders with strong balance sheets and attractive growth profiles. Its portfolio construction aims for diversified high-quality businesses that can produce equity-like returns based on conservative assumptions. The Intuit purchase therefore fits the manager's broader strategy of accepting relative-performance risk in exchange for a stronger margin of safety.
“our recent purchases are industry leaders, with strong balance sheets and attractive growth profiles.”