New regulatory filings reveal that FPA Crescent Fund portfolio manager Steven Romick executed a major portfolio adjustment in the second quarter of 2026, with the complete liquidation of JDE Peet‘s NV (JDE Peet’s) being the most impactful move on the fund's composition during the period.

Romick, a managing partner at FPA who has been with the firm since 1996, has long served as the portfolio manager for the FPA Crescent Fund. The fund employs a flexible contrarian value investing strategy, using deep fundamental analysis to uncover undervalued opportunities while emphasizing risk control and the avoidance of permanent capital loss. As of the end of 2025, the fund held approximately 140 individual stocks, with net assets of about $11.9 billion.

JDE Peet's is a leading global pure-play coffee company, operating in over 100 markets and owning well-known brands such as Jacobs, Tassimo, L'OR, and Douwe Egberts, with its headquarters in the Netherlands. The company was acquired by Keurig Dr Pepper (KDP) in April 2026.

FPA Crescent Fund, a former top-ten shareholder in JDE Peet's, chose to fully exit the position following the acquisition. According to the fund's end-of-2025 holdings report, JDE Peet's was its ninth-largest holding, accounting for 1.8% of the portfolio weight. The complete liquidation had a -3.28% impact on the portfolio, indicating that the position represented a larger share of the portfolio before the sale, and the exit significantly affected the fund's overall net asset value.

From an investment logic perspective, a contrarian value investor's decision to sell off a position typically signals a belief that the asset's valuation has reached or exceeded its intrinsic value. JDE Peet's delivered solid performance in 2025, with full-year sales of €9.92 billion and organic growth of 15.3%, driven primarily by a 19.5% price effect and adjusted product mix. Following the acquisition by KDP, the company integrated into a larger coffee platform, potentially unlocking its full valuation.

Public records show that the FPA Crescent Fund managed by Romick also holds positions in Alphabet, Analog Devices, Meta Platforms, and TE Connectivity. These holdings span various sectors, reflecting the fund's diversified allocation strategy. The complete exit from JDE Peet's underscores the disciplined approach of contrarian value investors in realizing value once a specific target's appreciation potential has been captured.