FPA Crescent Fund on SAP SE
Thesis
FPA bought SAP during the quarter as part of a portfolio increasingly built around companies that can generate attractive absolute returns without depending on extreme AI-capital-spending assumptions. The manager describes recent purchases as industry leaders with strong balance sheets and attractive growth characteristics. Its broader discipline is to invest when fundamentals and valuation are supportive of equity-like returns and to avoid themes where long-term assumptions become too difficult. SAP therefore fits the fund's preference for quality businesses bought with valuation support.
“our recent purchases are industry leaders, with strong balance sheets and attractive growth profiles.”