On this date, in his letter to shareholder, Robert L. Rodriguez said the following:
"We believe the past six months is nothing more than consolidation after a period of superior performance. The overall market exhibits these same tendencies. Large capitalization stocks have outperformed smaller capitalization stocks. This is the reverse of 1991.
“With the cross currents of both a sluggish economic recovery and a national election, investors appear to be confused as to what market capitalization segment to focus on. We believe the trend towards investing in smaller capitalization stocks has experienced only a pause rather than a reversal.
“The recent severe underperformance by several ‘blue chip’ companies and the re-emergence of interest in small capitalization stock managers by pension funds convince us that the trend towards smaller stock investing is still intact. As capital is redeployed from larger stocks to smaller stocks, it will have an exponential impact."
Robert L. Rodriguez. FPA Capital Fund. “Letter to Shareholders”. November 1, 1992.