While it bought some stakes and added to others, more than one-third of FPA Capital Fund (Trades, Portfolio)’s transactions in the fourth quarter, which ended Dec. 31, 2015, were reductions of existing stakes. Two of them had impacts of 1% or greater on the Fund’s portfolio.
The Fund’s most significant transaction in the fourth quarter was its reduction of its stake in Avnet Inc. (AVT, Financial), a Phoenix-based electronics company, by more than 37%. The Fund sold 411,940 shares for an average price of $44.99 per share. The deal had a -2.6% impact on the Fund’s portfolio.
Founded by a Russian immigrant in New York as a buyer and seller of surplus radio parts in 1921, Avnet has grown into one of the world's largest franchised distributors of electronic components and subsystems.
Avnet has a P/E of 9.3, a forward P/E of 7.4, a P/B of 1.1 and a P/S of 0.2. GuruFocus has given Avent a Financial Strength rating of 4/10 and a Profitability and Growth rating of 6/10.
The Fund’s remaining stake is 0.52% of Avnet’s outstanding shares and 4.81% of the Fund’s total assets.
Richard Pzena (Trades, Portfolio) is Avnet’s leading shareholder among the gurus with 5,662,927 shares in his portfolio.
Avnet sold for $39.01 per share Monday.
The Fund reduced its stake in Arrow Electronics Inc. (ARW, Financial), a Centennial, Colorado-based electronics company, by nearly 31%. The Fund sold 209,080 shares for an average price of $57.04 per share. The transaction had a -1.71% impact on the Fund’s portfolio.
The company was founded in New York in 1935 under the name Arrow Radio, selling used radios and radio parts. In the 1950s, it began selling electronic parts.
Arrow has a P/E of 10.2, a forward P/E of 6.8, a P/B of 1.1 and a P/S of 0.2. GuruFocus has given Arrow a Financial Strength rating of 7/10 and a Profitability and Growth rating of 7/10.
The Fund’s stake in Arrow is 0.51% of the company’s outstanding shares and 4.21% of the Fund’s total assets.
First Pacific Advisors (Trades, Portfolio) is Arrow’s largest shareholder among the gurus with 1,339,950 shares in its portfolio.
Arrow sold for $48.26 per share Monday.
The Fund trimmed its stake in Foot Locker Inc. (FL, Financial), a New York-based sportswear and footwear retailer, by nearly 41%, selling 79,990 shares for an average price of $66.4 per share. The deal had a -0.85% impact on the Fund’s portfolio.
Foot Locker was founded as a subsidiary of F.W. Woolworth Company in 1963. It began expanding into specialty shoe stores later in the decade.
Foot Locker has a P/E of 16.9, a forward P/E of 13.2, a P/B of 3.4 and a P/S of 1.2. GuruFocus has given Foot Locker a Financial Strength rating of 9/10 and a Profitability and Growth rating of 7/10.
The Fund’s remaining stake in Foot Locker is 0.08% of the company’s outstanding shares and 1.23% of the Fund’s total assets.
Joel Greenblatt (Trades, Portfolio) is Foot Locker’s leading shareholder among the gurus with 452,752 shares in his portfolio.
Foot Locker sold for $62.62 per share Monday.
The Fund cut its stake in ARRIS International PLC (ARRS, Financial), the new parent company of Suwanee, Georgia-based ARRIS Group Inc., a telecommunications company, by nearly 9%, selling 167,620 shares for an average price of $29.44 per share. The deal had a -0.64% impact on the Fund’s portfolio.
ARRIS International has a P/E of 15.6, a forward P/E of 11.7, a P/B of 2.3 and a P/S of 0.8. GuruFocus has given ARRIS International a Financial Strength rating of 3/10 and a Profitability and Growth rating of 7/10.
HOTCHKIS & WILEY is ARRIS International’s leading shareholder among the gurus with 8,064,818 shares in its portfolio.
ARRIS International sold for $26.79 per share Monday.
The Fund increased its position in Apollo Education Group Inc. (APOL, Financial), a Phoenix-based owner of for-profit educational institutions, by more than 52%. The Fund acquired 1,710,730 shares for an average price of $8.23 per share. The transaction had a 2.15% impact on the Fund’s portfolio.
Apollo Education Group was founded in 1973.
Apollo has a P/E of 23.7, a forward P/E of 13.3, a P/B of 0.6 and a P/S of 0.3. GuruFocus has given Apollo a Financial Strength rating of 8/10 and a Profitability and Growth rating of 5/10.
The Fund’s stake in Apollo is 4.6% of the company’s outstanding shares and 6.26% of the Fund’s total assets.
First Pacific Advisors (Trades, Portfolio) is Apollo’s leading shareholder among the gurus with 7,622,310 shares in its portfolio.
Apollo sold for $6.38 per share Monday.
The Fund added 171,630 shares to its holdings in Aaron's Inc. (AAN, Financial), an Atlanta-based rent-to-own retailer specializing in furniture, electronics, appliances and computers. The Fund paid an average price of $28.21 per share as it increased its stake by nearly 23%. The transaction had a 0.63% impact on the Fund’s portfolio.
Aaron’s was founded in 1955.
Aaron’s has a P/E of 10.9, a forward P/E of 9.2, a P/B of 1.1 and a P/S of 0.5. GuruFocus has given Aaron’s a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.
First Pacific Advisors (Trades, Portfolio) is Aaron’s leading shareholder among the gurus with 1,582,706 shares in its portfolio.
Aaron’s sold for $20.55 per share Monday.
The Fund sold its 459,435-share stake in BWX Technologies Inc. (BWXT, Financial), a Lynchburg, Virginia-based supplier of nuclear components and fuel to the U.S. government, for an average price of $29.52 per share.
BWX Technologies operated for many years as a part of The Babcock & Wilcox Company. It began trading separately last summer after a spinoff.
BWX has a P/E of 120.5, a forward P/E of 11.3, a P/B of 10.2 and a P/S of 1.1. GuruFocus has given BWX a Financial Strength rating of 9/10 and a Profitability and Growth rating of 6/10.
First Pacific Advisors (Trades, Portfolio) is BWX’s leading shareholder among the gurus with 896,355 shares in its portfolio.
BWX Technologies sold for $30.25 per share Monday.
The Fund also sold its stake in Federated Investors Inc. (FII, Financial), a Pittsburgh-based financial services company. The Fund sold its 256,443-share stake for an average price of $30.19 per share. The transaction had a -1.1% impact on the Fund’s portfolio.
Founded in 1955, Federated Investors manages more than $350 billion of customer assets.
Federated Investors has a P/E of 16.8, a forward P/E of 11.8, a P/B of 4.2 and a P/S of 2.9. GuruFocus has given Federated Investors a Financial Strength rating of 6/10 and a Profitability and Growth rating of 6/10.
Chuck Royce (Trades, Portfolio) is Federated Investors’ leading shareholder among the gurus with 5,701,392 shares in his portfolio.
Federated Investors sold for $26.06 per share Monday.
The Fund sold its 343,940-share stake in Barnes & Noble Inc. (BKS, Financial), a New York-based bookseller, for an average price of $11.76 per share. The divestiture had a -0.62% impact on the Fund’s portfolio.
Barnes & Noble was founded in 1886 as Arthur Hinds & Company. It became Barnes & Noble about 20 years later when clerk-turned-partner Clifford Noble bought out Hinds and formed a partnership with William Barnes.
Barnes & Noble has a forward P/E of 303, a P/B of 1.1 and a P/S of 0.1. GuruFocus has given Barnes & Noble a Financial Strength rating of 8/10 and a Profitability and Growth rating of 4/10.
David Abrams (Trades, Portfolio) is Barnes & Noble’s leading shareholder among the gurus with 6,918,774 shares in his portfolio.
Barnes & Noble sold for $8.52 per share Monday.
The Fund acquired a 208,730-share stake in Houghton Mifflin Harcourt Co. (HMHC, Financial), a Boston-based book publishing company, for an average price of $20.11 per share. The deal had a 0.74% impact on the Fund’s portfolio.
Houghton Mifflin Harcourt was founded in 1880 and was known as Houghton Mifflin Company until its purchase of Harcourt Publishing in 2007.
Houghton Mifflin Harcourt has a P/B of 1.6 and a P/S of 1.8. GuruFocus has given Houghton Mifflin Harcourt a Financial Strength rating of 4/10 and a Profitability and Growth rating of 3/10.
Manning & Napier Advisors Inc. is Houghton Mifflin Harcourt’s leading shareholder among the gurus with 3,296,383 shares in its portfolio.
Houghton Mifflin Harcourt sold for $18.36 per share Monday.
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