When FPA Capital Fund (Trades, Portfolio) invests, its preference is to invest in small, undervalued companies. In 2012, that approach nearly produced a 10% return. In 2013, it did even better than that, posting returns of nearly 23%.
FPA Capital Fund (Trades, Portfolio) bought three new stakes in the third quarter, but its most significant transactions were its sales of two existing stakes in oil and gas companies – Rosetta Resources Inc. (ROSE, Financial) and Atwood Oceanics Inc. (ATW, Financial).
FPA Capital sold its 1,900,302-share stake in Rosetta Resources, an oil and gas exploration company that was acquired by Houston-based Noble Energy (NBL, Financial) in July, for an average price of $21.32 per share. The transaction had a -6.31% impact on FPA Capital’s portfolio.
Rosetta Resources has a market cap of $1.51 billion and an enterprise value of $3.3 billion. It has a forward P/E of 34.3, a P/B of 1.5 and a P/S of 1.5. GuruFocus has given Rosetta Resources a Financial Strength rating of 5/10 and a Profitability and Growth rating of 7/10.
Rosetta Resources sold for $19.98 per share at the end of trading Tuesday.
First Pacific Advisors (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio), RS Investment Management (Trades, Portfolio), Third Avenue Management (Trades, Portfolio) and Mario Gabelli (Trades, Portfolio) have shares of Rosetta Resources in their portfolios.
FPA Capital sold its 1,065,100-share stake in Atwood Oceanics, a Houston-based oil and gas drilling company, for an average price of $19.49 per share. The deal had a -4.04% impact on FPA Capital’s portfolio.
Atwood Oceanics has a market cap of $1.1 billion and an enterprise value of $2.74 billion. It has a P/E of 2.9, a forward P/E of 3.5, a P/B of 0.4 and a P/S of 0.8. GuruFocus has given Atwood Oceanics a Financial Strength rating of 5/10 and a Profitability and Growth rating of 8/10.
A share of Atwood Oceanics sold for $16.82 when Tuesday’s trading session ended.
First Pacific Advisors (Trades, Portfolio), Chuck Royce (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Arnold Van Den Berg (Trades, Portfolio), David Dreman (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and Prem Watsa (Trades, Portfolio) have shares of Atwood Oceanics in their portfolios.
FPA Capital reduced five of its positions – BWX Technologies Inc. (BWXT, Financial), Aaron's Inc. (AAN, Financial), Foot Locker Inc. (FL, Financial), Reliance Steel and Aluminum (RS, Financial) and Federated Investors Inc. (FII, Financial).
FPA Capital sold more than one-third of its stake in BWX Technologies, a Lynchburg, Va.-based supplier of nuclear components and fuel to the U.S. government. FPA sold 251,965 shares for an average price of $25.52 per share. The transaction had a -0.85% impact on FPA Capital’s portfolio.
BWX Technologies has a market cap of $3.07 billion and an enterprise value of $3.36 billion. It has a forward P/E of 11.4, a P/B of 12.6 and a P/S of 1.1. GuruFocus has given BWX Technologies a Financial Strength rating of 8/10 and a Profitability and Growth rating of 6/10.
BWX Technologies was selling for $28.21 per share when the closing bell rang Tuesday.
First Pacific Advisors (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Jim Simons (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and Charles Brandes (Trades, Portfolio) have shares of BWX Technologies in their portfolios.
Additions
FPA Capital Fund (Trades, Portfolio) added to 15 existing stakes in the third quarter. The Fund’s most noteworthy addition was 456,500 shares to its stake in SM Energy Co. (SM, Financial), a Denver-based oil and gas company. The Fund paid an average price of $36.27 per share in a deal that had a 2.17% impact on FPA Capital’s portfolio.
SM Energy has a market cap of $2.63 billion and an enterprise value of $5.1 billion. It has a P/E of 6.1, a forward P/E of 63.3, a P/B of 1.2 and a P/S of 1.2. GuruFocus has given SM Energy a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.
SM Energy sold for $38.7 per share when trading concluded Tuesday.
Sarah Ketterer (Trades, Portfolio), Columbia Wanger (Trades, Portfolio), First Pacific Advisors (Trades, Portfolio), Paul Singer (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Kyle Bass (Trades, Portfolio), Jim Simons (Trades, Portfolio), Arnold Schneider (Trades, Portfolio), Ron Baron (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) have shares of SM Energy in their portfolios.
FPA Capital acquired 711,104 shares of Dana Holding Corp. (DAN, Financial), a Maumee, Ohio-based supplier of automotive powertrain components, for an average price of $18.08 per share. The purchase had a 1.67% impact on FPA Capital’s portfolio.
Dana Holding has a market cap of $2.83 billion and an enterprise value of $3.49 billion. It has a P/E of 9.3, a forward P/E of 8.0, a P/B of 2.8 and a P/S of 0.5. GuruFocus has given Dana Holding a Financial Strength rating of 5/10 and a Profitability and Growth rating of 4/10.
Dana Holding sold for $17.51 per share when the final bell rang Tuesday.
RS Investment Management (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Richard Pzena (Trades, Portfolio), Chuck Royce (Trades, Portfolio), First Pacific Advisors (Trades, Portfolio), Donald Smith (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Steven Cohen (Trades, Portfolio), James Barrow (Trades, Portfolio) and David Dreman (Trades, Portfolio) have shares of Dana Holding in their portfolios.
FPA Capital purchased 191,600 shares of Helmerich & Payne Inc. (HP, Financial), a Tulsa, Okla.-based oilfield services and equipment company, for an average price of $56.61 per share. The deal had a 1.34% impact on FPA Capital’s portfolio.
Helmerich & Payne has a market cap of $6.2 billion and an enterprise value of $6 billion. It has a P/E of 10.3, a forward P/E of 119.1, a P/B of 1.2 and a P/S of 1.7. GuruFocus has given Helmerich & Payne a Financial Strength rating of 6/10 and a Profitability and Growth rating of 8/10.
First Pacific Advisors (Trades, Portfolio), Chuck Royce (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Ron Baron (Trades, Portfolio), Kyle Bass (Trades, Portfolio), Michael Price (Trades, Portfolio) and Prem Watsa (Trades, Portfolio) have shares of Helmerich & Payne in their portfolios.
Helmerich & Payne sold for $57.18 per share at the close of trading Tuesday.
FPA Capital bought 434,963 shares of Veeco Instruments Inc. (VECO, Financial), a Plainview, N.Y.-based electronics company, for an average price of $24.16 per share. The transaction had a 1.32% impact on FPA Capital’s portfolio.
Veeco Instruments has a market cap of $825.99 million and an enterprise value of $431.44 million. It has a forward P/E of 14.8, a P/B of 1.2 and a P/S of 1.8. GuruFocus has given Veeco Instruments a Financial Strength rating of 6/10 and a Profitability and Growth rating of 4/10.
Veeco Instruments sold for $20.13 per share late Tuesday afternoon.
Chuck Royce (Trades, Portfolio), Ken Fisher (Trades, Portfolio), First Pacific Advisors (Trades, Portfolio), Jim Simons (Trades, Portfolio) and Murray Stahl (Trades, Portfolio) have shares of Veeco Instruments in their portfolios.
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