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First Pacific Advisors Q1 Portfolio Update; Buys CSCO, UN, CVS, WMT, MSFT, HPQ, BUD

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First Pacific Advisors (FPA) is an investment management firm located in Los Angeles, Calif. With over $16.17 billion under management, FPA utilizes four primary strategies: absolute value, quality value, contrarian, and fixed income. Those strategies are then utilized in several of First Pacific’s funds, ranging from the small and mid-cap oriented Capital Fund, to the New Fixed Income fund. Two fund managers from First pacific Advisors are in our List of Gurus. One is Robert Rodriguez, manager of FPA Capital Fund. The other is Steven Romick, manager of FPA Crescent Fund. The Capital Fund has assets of $1.4 billion under management. This fund has been in operation since July 1984, and is led by Robert Rodriguez, a CFA charter holder who earned his BS and MBA from the University of Southern California.

“…I found many books from the 1920s and 1930s on business. Among them was a book written by Benjamin Graham and David Dodd on security analysis. It changed my life and my investment philosophy forever.”

The fund’s stated objective is the growth of long term capital, with income as a secondary consideration. First Pacific utilizes a fundamental, bottoms-up approach to select investment opportunities, with special attention to equities that may have fallen out of favor as reflected in their P/E and P/B ratios. In order to minimize risk from investing in these so called “fallen” equities, meticulous research is utilized to find deep-value in these companies with strong leadership. Furthermore, special consideration is given to the following factors:

A. Current / future levels of profitability.

B. Book Value

C. Replacement cost of assets

D. Free Cash flow

E. Overall balance sheet health

As a result of their deep-value oriented strategies, their performance boasts of a 15.10% annualized return vs. the S&P 500 benchmark of 8.72% for the last 20 years. In terms of a more recent time frame, this year to date, the Capital Fund has returned 13.20% vs. the benchmark of 5.92%. Furthermore, in order to maintain their current success, the fund, as of July 9, 2004, has been closed to outside investors as FPA felt that this would allow the fund to maintain their investment flexibility.

First Pacific Advisors buys Cvs Caremark Corp., Walmart Stores Inc., Cisco Systems Inc., Microsoft Corp., Hewlett Packard Co, Anheuserbusch Inbev Sa/nv, Johnson & Johnson, Tranatlantic Holdings Inc., Owens Illinois Inc., Pfizer Inc., Kraft Foods Inc., The Travelers Companies Inc., Unilever Nv, Occidental Petroleum Corp., Omnicare Inc., Gap Inc., Aon Corp., Ishares Trust Russell 2000 Index Fund, sells Pride International Inc., Joann Stores Inc., Baker Hughes Inc., Discover Financial Services, Charming Shoppes Inc., Walter Investment Management Corp. during the 3-months ended 03/31/2011, according to the most recent filings of his investment company, First Pacific Advisors, LLC. As of 03/31/2011, First Pacific Advisors, LLC owns 104 stocks with a total value of $6.7 billion. These are the details of the buys and sells.

This is the portfolio chart of First Pacific Advisors. 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.



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

This is the sector weightings of his portfolio:

Oil & Gas 31%
Industrials 17%
Consumer Services 15.2%
Health Care 13.6%
Technology 10.1%
Consumer Goods 4.3%
Financials 2.4%
Telecommunications 1.8%
Basic Materials 0.6%


These are the top 5 holdings of First Pacific Advisors

  1. ENSCO PLC (ESV) - 8,120,500 shares, 6.98% of the total portfolio. Shares reduced by 0.29%
  2. ROWAN COMPANIES INC. (RDC) - 6,782,000 shares, 4.45% of the total portfolio. Shares reduced by 4.4%
  3. AON Corp. (AON) - 4,882,100 shares, 3.84% of the total portfolio. Shares added by 3.24%
  4. WESTERN DIGITAL CORP. (WDC) - 6,741,200 shares, 3.73% of the total portfolio. Shares added by 0.04%
  5. CVS CAREMARK Corp. (CVS) - 6,795,300 shares, 3.46% of the total portfolio. Shares added by 38.27%


Added: Cvs Caremark Corp. (CVS)

First Pacific Advisors added to his holdings in Cvs Caremark Corp. by 38.27%. His purchase prices were between $32.51 and $35.71, with an estimated average price of $33.91. The impact to his portfolio due to this purchase was 0.96%. His holdings were 6,795,300 shares as of 03/31/2011.

CVS/Caremark is the nation's premier integrated pharmacy services provider, combining one of the nation's pharmaceutical services companies with the country's largest pharmacy chain. Cvs Caremark Corp. has a market cap of $52.17 billion; its shares were traded at around $38.13 with a P/E ratio of 14.3 and P/S ratio of 0.5. The dividend yield of Cvs Caremark Corp. stocks is 1.3%. Cvs Caremark Corp. had an annual average earnings growth of 13.4% over the past 10 years. GuruFocus rated Cvs Caremark Corp. the business predictability rank of 4.5-star.

Added: Walmart Stores Inc. (WMT)

First Pacific Advisors added to his holdings in Walmart Stores Inc. by 49.47%. His purchase prices were between $51.37 and $57.57, with an estimated average price of $53.98. The impact to his portfolio due to this purchase was 0.88%. His holdings were 3,437,700 shares as of 03/31/2011.

Wal-Mart Stores, Inc. is the world's largest retailer. Walmart Stores Inc. has a market cap of $194.25 billion; its shares were traded at around $55.72 with a P/E ratio of 13.6 and P/S ratio of 0.5. The dividend yield of Walmart Stores Inc. stocks is 2.6%. Walmart Stores Inc. had an annual average earnings growth of 11.1% over the past 10 years. GuruFocus rated Walmart Stores Inc. the business predictability rank of 5-star.

Added: Microsoft Corp. (MSFT)

First Pacific Advisors added to his holdings in Microsoft Corp. by 53.72%. His purchase prices were between $24.78 and $28.87, with an estimated average price of $27.04. The impact to his portfolio due to this purchase was 0.72%. His holdings were 5,445,400 shares as of 03/31/2011.

Microsoft develops, manufactures, licenses, and supports a wide range of software products for a multitude of computing devices. Microsoft Corp. has a market cap of $210.31 billion; its shares were traded at around $25.03 with a P/E ratio of 10.2 and P/S ratio of 3.5. The dividend yield of Microsoft Corp. stocks is 2.5%. Microsoft Corp. had an annual average earnings growth of 12.6% over the past 10 years. GuruFocus rated Microsoft Corp. the business predictability rank of 3-star.

Added: Hewlett Packard Co (HPQ)

First Pacific Advisors added to his holdings in Hewlett Packard Co by 56.67%. His purchase prices were between $40.14 and $48.99, with an estimated average price of $44.65. The impact to his portfolio due to this purchase was 0.47%. His holdings were 2,117,500 shares as of 03/31/2011.

Hewlett Packard is one of the global providers of computing and imaging solutions and services for business and home. Hewlett Packard Co has a market cap of $87.44 billion; its shares were traded at around $40.41 with a P/E ratio of 8.3 and P/S ratio of 0.7. The dividend yield of Hewlett Packard Co stocks is 0.8%. Hewlett Packard Co had an annual average earnings growth of 22.5% over the past 5 years.

Added: Anheuserbusch Inbev Sa/nv (BUD)

First Pacific Advisors added to his holdings in Anheuserbusch Inbev Sa/nv by 37.23%. His purchase prices were between $53.9 and $58.68, with an estimated average price of $56.43. The impact to his portfolio due to this purchase was 0.44%. His holdings were 1,935,000 shares as of 03/31/2011.

Anheuser-Busch Companies is the holding company parent of Anheuser-BuschIncorporated and to a number of subsidiaries that conduct variousother business operations. Anheuserbusch Inbev Sa/nv has a market cap of $95.59 billion; its shares were traded at around $59.55 with a P/E ratio of 19 and P/S ratio of 2.6. The dividend yield of Anheuserbusch Inbev Sa/nv stocks is 1.6%.

Added: Johnson & Johnson (JNJ)

First Pacific Advisors added to his holdings in Johnson & Johnson by 63.5%. His purchase prices were between $57.66 and $63.35, with an estimated average price of $60.71. The impact to his portfolio due to this purchase was 0.38%. His holdings were 1,117,000 shares as of 03/31/2011.

Johnson & Johnson is engaged in the manufacture and sale of a broad range of products in the health care field in many countries of the world. Johnson & Johnson has a market cap of $182.56 billion; its shares were traded at around $66.62 with a P/E ratio of 13.8 and P/S ratio of 2.9. The dividend yield of Johnson & Johnson stocks is 3.3%. Johnson & Johnson had an annual average earnings growth of 9.3% over the past 10 years. GuruFocus rated Johnson & Johnson the business predictability rank of 4-star.

Added: Tranatlantic Holdings Inc. (TRH)

First Pacific Advisors added to his holdings in Tranatlantic Holdings Inc. by 53.7%. His purchase prices were between $46.24 and $52.45, with an estimated average price of $50.5. The impact to his portfolio due to this purchase was 0.3%. His holdings were 1,184,600 shares as of 03/31/2011.

Transatlantic Holdings, through its wholly-owned subsidiaries, Transatlantic Reinsurance Company, Trans Re Zurich, and Putnam, offers reinsurance capacity for a full range of property and casualty products on a treaty and facultative basis, directly and through brokers, to insurance and reinsurance companies, in both the domestic and international markets. Tranatlantic Holdings Inc. has a market cap of $2.98 billion; its shares were traded at around $47.75 with a P/E ratio of 23.1 and P/S ratio of 0.7. The dividend yield of Tranatlantic Holdings Inc. stocks is 1.7%.

Added: Owens Illinois Inc. (OI)

First Pacific Advisors added to his holdings in Owens Illinois Inc. by 55.03%. His purchase prices were between $29.09 and $32.36, with an estimated average price of $30.6. The impact to his portfolio due to this purchase was 0.27%. His holdings were 1,713,412 shares as of 03/31/2011.

Owens-Illinois, Inc. is one of the largest manufacturers of glass containers in North America, South America, Australia, New Zealand, and China, and one of the largest in Europe. Owens Illinois Inc. has a market cap of $5.41 billion; its shares were traded at around $33 with a P/E ratio of 12.1 and P/S ratio of 0.8.

Added: Pfizer Inc. (PFE)

First Pacific Advisors added to his holdings in Pfizer Inc. by 14.69%. His purchase prices were between $17.51 and $20.38, with an estimated average price of $19.07. The impact to his portfolio due to this purchase was 0.23%. His holdings were 5,946,400 shares as of 03/31/2011.

Pfizer Inc is a research-based, global pharmaceutical company that discovers and develops innovative, value-added products that improve the quality of life of people around the world and help them enjoy longer, healthier, and more productive lives. Pfizer Inc. has a market cap of $167.18 billion; its shares were traded at around $20.92 with a P/E ratio of 9.3 and P/S ratio of 2.4. The dividend yield of Pfizer Inc. stocks is 3.8%.

Added: Kraft Foods Inc. (KFT)

First Pacific Advisors added to his holdings in Kraft Foods Inc. by 42.41%. His purchase prices were between $30.49 and $31.84, with an estimated average price of $31.21. The impact to his portfolio due to this purchase was 0.19%. His holdings were 1,376,500 shares as of 03/31/2011.

Kraft Foods, Inc. is the largest branded food and beverage company headquartered in the U. Kraft Foods Inc. has a market cap of $61 billion; its shares were traded at around $34.89 with a P/E ratio of 17 and P/S ratio of 1.2. The dividend yield of Kraft Foods Inc. stocks is 3.4%. Kraft Foods Inc. had an annual average earnings growth of 2.3% over the past 5 years.

Added: The Travelers Companies Inc. (TRV)

First Pacific Advisors added to his holdings in The Travelers Companies Inc. by 38.79%. His purchase prices were between $53.33 and $60.92, with an estimated average price of $57.54. The impact to his portfolio due to this purchase was 0.16%. His holdings were 652,600 shares as of 03/31/2011.

St. Paul Travelers is a provider of commercial property-liability insurance and asset management services. The Travelers Companies Inc. has a market cap of $26.87 billion; its shares were traded at around $62.33 with a P/E ratio of 9 and P/S ratio of 1.1. The dividend yield of The Travelers Companies Inc. stocks is 2.4%. The Travelers Companies Inc. had an annual average earnings growth of 8.4% over the past 5 years.

Added: Occidental Petroleum Corp. (OXY)

First Pacific Advisors added to his holdings in Occidental Petroleum Corp. by 5.83%. His purchase prices were between $93.81 and $107.37, with an estimated average price of $99.34. The impact to his portfolio due to this purchase was 0.15%. His holdings were 1,760,200 shares as of 03/31/2011.

Occidental Petroleum Corp. explores for, develops, produces and markets crude oil and natural gas and manufactures and markets a variety of basic chemicals, including chlorine, caustic soda, and ethylene dichloride, as well as specialty chemicals and vinyls, including polyvinyl chloride resins and vinyl chloride monomer. Occidental Petroleum Corp. has a market cap of $83.21 billion; its shares were traded at around $102.36 with a P/E ratio of 16.3 and P/S ratio of 4.5. The dividend yield of Occidental Petroleum Corp. stocks is 1.8%. Occidental Petroleum Corp. had an annual average earnings growth of 14.3% over the past 10 years.

Added: Omnicare Inc. (OCR)

First Pacific Advisors added to his holdings in Omnicare Inc. by 7.28%. His purchase prices were between $24.59 and $30.62, with an estimated average price of $27.49. The impact to his portfolio due to this purchase was 0.14%. His holdings were 4,552,000 shares as of 03/31/2011.

Omnicare, Inc., a Fortune five hundred company based in Covington, Kentucky, is a provider of pharmaceutical care for the elderly. Omnicare Inc. has a market cap of $3.7 billion; its shares were traded at around $31.65 with a P/E ratio of 15.7 and P/S ratio of 0.6. The dividend yield of Omnicare Inc. stocks is 0.4%.

Added: Aon Corp. (AON)

First Pacific Advisors added to his holdings in Aon Corp. by 3.24%. His purchase prices were between $43.83 and $52.93, with an estimated average price of $48.94. The impact to his portfolio due to this purchase was 0.12%. His holdings were 4,882,100 shares as of 03/31/2011.

Aon Corporation is a holding company whose operating subsidiaries carry onbusiness in three distinct segments: insurance brokerage and other services; consulting; and insurance underwriting. Aon Corp. has a market cap of $17.6 billion; its shares were traded at around $52.84 with a P/E ratio of 17.3 and P/S ratio of 2.1. The dividend yield of Aon Corp. stocks is 1.1%. Aon Corp. had an annual average earnings growth of 3.2% over the past 10 years.

Added: Ishares Trust Russell 2000 Index Fund (IWM)

First Pacific Advisors added to his holdings in Ishares Trust Russell 2000 Index Fund by 92.11%. His purchase prices were between $77.19 and $83.88, with an estimated average price of $80.4. The impact to his portfolio due to this purchase was 0.01%. His holdings were 21,900 shares as of 03/31/2011.

ISHARES RUSSELL 2000 Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the small capitalization sector of the U. Ishares Trust Russell 2000 Index Fund has a market cap of $17.64 billion; its shares were traded at around $83.51 . The dividend yield of Ishares Trust Russell 2000 Index Fund stocks is 1.7%.

New Purchase: Cisco Systems Inc. (CSCO)

First Pacific Advisors initiated holdings in Cisco Systems Inc.. His purchase prices were between $17 and $22.05, with an estimated average price of $19.5. The impact to his portfolio due to this purchase was 0.88%. His holdings were 3,440,000 shares as of 03/31/2011.

Cisco Systems, Inc. is the worldwide leader in networking for the Internet. Cisco Systems Inc. has a market cap of $93.31 billion; its shares were traded at around $16.88 with a P/E ratio of 11.8 and P/S ratio of 2.3. The dividend yield of Cisco Systems Inc. stocks is 1.5%. Cisco Systems Inc. had an annual average earnings growth of 23% over the past 10 years. GuruFocus rated Cisco Systems Inc. the business predictability rank of 2.5-star.

New Purchase: Unilever Nv (UN)

First Pacific Advisors initiated holdings in Unilever Nv. His purchase prices were between $29.07 and $31.72, with an estimated average price of $30.31. The impact to his portfolio due to this purchase was 0.15%. His holdings were 319,832 shares as of 03/31/2011.

Unilever is one of the world's largest consumer products companies. Unilever Nv has a market cap of $96.91 billion; its shares were traded at around $32.52 with a P/E ratio of 15.5 and P/S ratio of 1.6. The dividend yield of Unilever Nv stocks is 2.8%.

New Purchase: Gap Inc. (GPS)

First Pacific Advisors initiated holdings in Gap Inc.. His purchase prices were between $19.03 and $23.05, with an estimated average price of $21.3. The impact to his portfolio due to this purchase was 0.12%. His holdings were 366,000 shares as of 03/31/2011.

The Gap, Inc. is a global specialty retailer which operates stores selling casual apparel, personal care and other accessories for men, women and children under the Gap, Banana Republic and Old Navy brands. Gap Inc. has a market cap of $13.43 billion; its shares were traded at around $23.05 with a P/E ratio of 12.1 and P/S ratio of 0.9. The dividend yield of Gap Inc. stocks is 2%. Gap Inc. had an annual average earnings growth of 15.4% over the past 10 years. GuruFocus rated Gap Inc. the business predictability rank of 3.5-star.

Reduced: Pride International Inc. (PDE)

First Pacific Advisors reduced to his holdings in Pride International Inc. by 62.41%. His sale prices were between $31.45 and $43.26, with an estimated average price of $37.99. The impact to his portfolio due to this sale was -1.15%. First Pacific Advisors still held 1,084,100 shares as of 03/31/2011.

Pride is a international provider of contract drilling and relatedservices, operating both offshore and on land. Pride International Inc. has a market cap of $7.31 billion; its shares were traded at around $41.31 with a P/E ratio of 32.8 and P/S ratio of 5.1. Pride International Inc. had an annual average earnings growth of 3% over the past 10 years.

Reduced: Baker Hughes Inc. (BHI)

First Pacific Advisors reduced to his holdings in Baker Hughes Inc. by 24.99%. His sale prices were between $54.83 and $74.16, with an estimated average price of $66.23. The impact to his portfolio due to this sale was -0.44%. First Pacific Advisors still held 1,216,738 shares as of 03/31/2011.

Baker Hughes Inc. is engaged in the oilfield and process industries. Baker Hughes Inc. has a market cap of $30.09 billion; its shares were traded at around $69.27 with a P/E ratio of 25.8 and P/S ratio of 2.1. The dividend yield of Baker Hughes Inc. stocks is 0.8%. Baker Hughes Inc. had an annual average earnings growth of 11% over the past 10 years.

Reduced: Discover Financial Services (DFS)

First Pacific Advisors reduced to his holdings in Discover Financial Services by 52.72%. His sale prices were between $18.53 and $24.98, with an estimated average price of $21.25. The impact to his portfolio due to this sale was -0.22%. First Pacific Advisors still held 552,600 shares as of 03/31/2011.

Discover Financial Services operates the Discover Card with more than fifty million cardmembers, the Discover Network with millions of merchant and cash access locations, and the Goldfish credit card business in the United Kingdom. Discover Financial Services has a market cap of $13.22 billion; its shares were traded at around $24.24 with a P/E ratio of 10.6 and P/S ratio of 1.6. The dividend yield of Discover Financial Services stocks is 1%.

Reduced: Walter Investment Management Corp. (WAC)

First Pacific Advisors reduced to his holdings in Walter Investment Management Corp. by 43.96%. His sale prices were between $16.5 and $20.05, with an estimated average price of $18.71. The impact to his portfolio due to this sale was -0.03%. First Pacific Advisors still held 181,800 shares as of 03/31/2011.

Walter Investment Management Corp., headquartered in Tampa, FL, is a Mortgage portfolio owner and mortgage servicer specializing in subprime, non-conforming and other credit challenged mortgage assets. Walter Investment Management Corp. has a market cap of $459.3 million; its shares were traded at around $17.8 with a P/E ratio of 16.1 and P/S ratio of 2.5.

Sold Out: Charming Shoppes Inc. (CHRS)

First Pacific Advisors sold out his holdings in Charming Shoppes Inc.. His sale prices were between $2.96 and $4.18, with an estimated average price of $3.28.

Charming Shoppes operates women's specialty apparel stores under the names Fashion Bug, Fashion Bug Plus, Catherine's, PS. Charming Shoppes Inc. has a market cap of $487.2 million; its shares were traded at around $4.21 with and P/S ratio of 0.2.


Rating: 2.0/5 (6 votes)

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