FPA Global Equity ETF (FPAG)

On our desk, we are closely tracking the transition of FPAG as an equity-only carve-out of the flagship FPA Crescent fund. With Mark Landecker and Brian A. Selmo at the helm since inception, the strategy maintains a concentrated 30-50 common equity portfolio targeting absolute value opportunities. Morningstar's Silver rating reinforces our confidence in their bottom-up fundamental research discipline and focus on compounders.

When evaluating the portfolio construction protocol for FPAG, candidates must understand that the fund targets businesses with strong balance sheets typically greater than $10 billion in market capitalization at initial purchase, though liquidity allows selective positioning down to $5 billion. The mandate emphasizes an absolute return focus rather than tracking error minimization against the MSCI ACWI.

Market sentiment surrounding FPAG highlights its structural advantage over passive indexing. As noted in recent FPA commentary, the fund's weighted average market capitalization is nearly one-third that of the MSCI ACWI, giving the team running the $3.2B global equity strategy ample room to hunt for out-of-favor compounders across developed and emerging markets.

Looking at the Q2 2026 institutional filings, 50 hedge funds and large institutions have deployed $464M into FPAG. While total fund ownership decreased by roughly 15.35% to 85.64%, the persistence of first-time investments and active positioning changes indicate ongoing interest from sophisticated allocators seeking unconstrained global exposure.

From a risk management standpoint, we note that the fund operates with a net expense ratio of 0.49% (total expense ratio 0.86%) and typically maintains a minimal cash buffer of a few percentage points. Downside mitigation relies heavily on purchasing businesses with an adequate margin of safety and maintaining a long-term investment horizon across full market cycles.