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FPA Capital Fund Buys ARRS, Sells MCY, ROSE, SIG, BHI, RS,

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gurufocus

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FPA Capital Fund is run by deep value investor Robert Rodriguez. This is the Q4 portfolio of the fund. Rodriguez was doing more selling than buying.

Inspired by Charlie Munger, Robert Rodriguez runs a very concentrated portfolio. He owns 20 stock only with his portfolio, with top 5 stocks in more than 50% of the equity holdings. The fund is heavily weighted toward energy. The reason has been summarized in “Robert Rodriguez’s Perspectives on Energy Stocks

Mr. Rodriguez and FPA Funds in general seem to have a good grip on the macro economic conditions and market valuations. These factors play an important role in their portfolio decision making. Far before the collapse of 2008, Mr. Rodriguez pointed out the crisis that was in the making. He did not own any financial stocks, and was heavy with cash. For details, please read Robert Rodriguez's Perspective on Financial Stocks and Sub-Prime Loans.

This is the portfolio chart of Robert Rodriguez. You can click on the legend of the chart to show/hide buys, sells, or holdings. Each ball on the chart represents a position in the portfolio. You can move your mouse on the balls to see the details of each position and click to see the details of all guru trades with this position.



We can see that FPA capital concentrates mainly in mid-cap area. These are the details of new buys and sells.

For the details of Robert Rodriguez's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Robert+Rodriguez

This is the sector weightings of his portfolio:

Oil & Gas 56.8%
Industrials 24.4%
Consumer Services 9.5%
Technology 7.8%
Basic Materials 1.5%


These are the top 5 holdings of Robert Rodriguez

  1. ENSCO International Inc. (ESV) - 1,870,600 shares, 11.02% of the total portfolio.
  2. Rowan Companies Inc. (RDC) - 2,721,000 shares, 10.48% of the total portfolio.
  3. Rosetta Resources Inc. (ROSE) - 2,367,500 shares, 9.84% of the total portfolio. Shares reduced by 14.23%
  4. Avnet Inc. (AVT) - 2,535,100 shares, 9.24% of the total portfolio.
  5. Arrow Electronics Inc. (ARW) - 2,186,700 shares, 8.27% of the total portfolio.


New Purchase: Arris Group Inc (ARRS)

Robert Rodriguez initiated holdings in Arris Group Inc. His purchase prices were between $9.1 and $11.24, with an estimated average price of $10.19. The impact to his portfolio due to this purchase was 0.72%. His holdings were 585,400 shares as of 12/31/2010.

Arris Group, Inc. is an international communications technology company serving the broadband information transport industries. Arris Group Inc has a market cap of $1.49 billion; its shares were traded at around $12.07 with a P/E ratio of 13.9 and P/S ratio of 1.4. Arris Group Inc had an annual average earning growth of 46% over the past 5 years.

Reduced: Rosetta Resources Inc. (ROSE)

Robert Rodriguez reduced to his holdings in Rosetta Resources Inc. by 14.23%. His sale prices were between $23.34 and $37.85, with an estimated average price of $30.75. The impact to his portfolio due to this sale was -1.63%. Robert Rodriguez still held 2,367,500 shares as of 12/31/2010.

Rosetta Resources Inc. is an independent oil and gas company engaged in the acquisition, exploration, development and production of primarily natural gas properties in North America. Rosetta Resources Inc. has a market cap of $1.99 billion; its shares were traded at around $37.72 with a P/E ratio of 60.8 and P/S ratio of 6.7.

Reduced: Signet Group Plc (SIG)

Robert Rodriguez reduced to his holdings in Signet Group Plc by 23.84%. His sale prices were between $32.21 and $44.3, with an estimated average price of $37.85. The impact to his portfolio due to this sale was -1.38%. Robert Rodriguez still held 917,827 shares as of 12/31/2010.

Signet Group PLC operates specialist retail jewellery stores. Signet Group Plc has a market cap of $3.53 billion; its shares were traded at around $41.13 with a P/E ratio of 25.1 and P/S ratio of 1.1.

Reduced: Baker Hughes Inc. (BHI)

Robert Rodriguez reduced to his holdings in Baker Hughes Inc. by 19.44%. His sale prices were between $42.82 and $56.85, with an estimated average price of $50.12. The impact to his portfolio due to this sale was -1.06%. Robert Rodriguez still held 696,575 shares as of 12/31/2010.

Baker Hughes Inc. is engaged in the oilfield and process industries. Baker Hughes Inc. has a market cap of $24.91 billion; its shares were traded at around $57.76 with a P/E ratio of 31.6 and P/S ratio of 2.6. The dividend yield of Baker Hughes Inc. stocks is 1.1%. Baker Hughes Inc. had an annual average earning growth of 16.3% over the past 10 years. GuruFocus rated Baker Hughes Inc. the business predictability rank of 2.5-star.

Reduced: Reliance Steel & Aluminum Co. (RS)

Robert Rodriguez reduced to his holdings in Reliance Steel & Aluminum Co. by 29.92%. His sale prices were between $40.89 and $51.73, with an estimated average price of $45.77. The impact to his portfolio due to this sale was -0.65%. Robert Rodriguez still held 268,908 shares as of 12/31/2010.

Reliance Steel & Aluminum Co. is one of the largest metals service center companies in the United States. Reliance Steel & Aluminum Co. has a market cap of $3.97 billion; its shares were traded at around $53.19 with a P/E ratio of 16 and P/S ratio of 0.7. The dividend yield of Reliance Steel & Aluminum Co. stocks is 0.8%. Reliance Steel & Aluminum Co. had an annual average earning growth of 21.8% over the past 10 years. GuruFocus rated Reliance Steel & Aluminum Co. the business predictability rank of 3.5-star.

Sold Out: Mercury General Corp. (MCY)

Robert Rodriguez sold out his holdings in Mercury General Corp.. His sale prices were between $40.82 and $44.79, with an estimated average price of $43.09.

Mercury General Corp. is engaged primarily in writing all risk classifications of automobile insurance in a number of states, principallyCalifornia. Mercury General Corp. has a market cap of $2.37 billion; its shares were traded at around $43.25 with a P/E ratio of 14.8 and P/S ratio of 0.7. The dividend yield of Mercury General Corp. stocks is 5.5%.


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gurufocus
GuruFocus - Stock Picks and Market Insight of Gurus

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