FPA Capital Fund (Trades, Portfolio) has a concentrated portfolio and invests primarily in undervalued small to midcap companies. The following are the companies the fund has been buying for at least the last two quarters.
Veeco Instruments Inc. (VECO)
During the fourth quarter of 2015, the fund increased its stake by 4.86% and, in the first quarter, again bought shares in the company with an increase of 8.71%. The fund holds 2.26% of outstanding shares of a company that through its subsidiaries creates process equipment solutions that enable technologies for a cleaner and more productive world. During the fourth quarter the company delivered solid revenue and adjusted EBITDA and exceeded the high end of its guidance range for gross margin. Revenue had a 6% decrease compared with the same period last year.
The largest shareholder among the gurus is Ken Fisher (Trades, Portfolio) with 4.57% of outstanding shares followed by First Pacific Advisors (Trades, Portfolio) with 4.07%, Jim Simons (Trades, Portfolio) with 2.72%, FPA Capital Fund (Trades, Portfolio) with 2.26%, Chuck Royce (Trades, Portfolio) with 0.48%, Arnold Schneider (Trades, Portfolio) with 0.24%, Barrow, Hanley, Mewhinney & Strauss with 0.22%, Paul Tudor Jones (Trades, Portfolio) with 0.12% and Joel Greenblatt (Trades, Portfolio) with 0.05%.
Babcock & Wilcox Enterprises Inc. (BW)
During the fourth quarter of 2015, the fund increased its stake by 3.12% and, in the first quarter, again bought shares in the company with an increase of 7.78%. The fund holds 1.75% of outstanding shares of the global leader in energy and environmental technologies and services for the power and industrial markets with operations, subsidiaries and joint ventures worldwide. Fourth-quarter revenue increased 13.1% primarily from higher volume in Global Power and good project execution in Industrial Environmental; partially offset by increased SG&A expenses related to being a stand-alone company, adjusted operating income increased 3.7%.
Mariko Gordon (Trades, Portfolio) is the company's largest shareholder among the gurus with 5.67% of outstanding shares followed by First Pacific Advisors (Trades, Portfolio) with 3.15%, FPA Capital Fund (Trades, Portfolio) with 1.75%, Steven Cohen (Trades, Portfolio) with 0.54%, Charles Brandes (Trades, Portfolio) with 0.09% and Greenblatt with 0.09%.
Dana Holding Corp. (DAN)
During the fourth quarter of 2015, the firm increased its stake by 1.77% and, in the first quarter, again bought shares in the company with an increase of 0.32%. The fund holds 1.25% of outstanding shares in the provider of high technology driveline axles, driveshafts and transmissions, sealing and thermal-management products. During the fourth quarter adjusted EBITDA was $652 million, margin of 10.8%, with three of four business units improving year-over-year margin performance.
The largest shareholder among the gurus is Mario Gabelli (Trades, Portfolio) with 3.38% of outstanding shares followed by Richard Pzena (Trades, Portfolio) with 3.1%, First Pacific Advisors (Trades, Portfolio) with 2.48%, Greenblatt with 0.87%, Royce with 0.77%, Donald Smith (Trades, Portfolio) with 0.76% and Fisher with 0.45%.
Aaron's Inc. (AAN)
During the fourth quarter of 2015, the fund increased its stake by 7.37% and, in the first quarter, again bought shares in the company with an increase of 13.24%. The fund holds 1.45% of outstanding shares in the company, a specialty retailer of furniture, consumer electronics, computers, appliances and household accessories. Its store-based operations are engaged in the lease ownership and retail sale of products such as flat-screen televisions, computers, tablets, living room, dining room and bedroom furniture, mattresses, washers, dryers and refrigerators. Fourth-quarter revenue grew by 10%, adjusted EBITDA by 23% and non-GAAP earnings per share by 27%.
Diamond Hill Capital (Trades, Portfolio) is the company's largest shareholder among the gurus with 2.97% of outstanding shares followed by First Pacific Advisors (Trades, Portfolio) with 2.71%, Gabelli with 1.45%, Greenblatt with 1.29%, Brandes with 0.45%, Tom Gayner (Trades, Portfolio) with 0.45% and David Dreman (Trades, Portfolio) with 0.17%.
Patterson-UTI Energy Inc. (PTEN)
During the fourth quarter of 2015, the firm increased its stake by 6.09% and, in the first quarter, again bought shares in the company with an increase of 2.15% of its stake. The fund holds 1.39% of outstanding shares of the provider of contract services to the North American oil and natural gas industry. Gross margin as a percentage of revenues improved slightly during the fourth quarter to 10.4%. The company reported a net loss of 40 cents per share, compared to net income 39 cents per share, for the quarter of a year before.
The largest shareholder among the gurus is First Pacific Advisors (Trades, Portfolio) with 2.84% of outstanding shares followed by Cohen with 1.92%, Kahn Brothers (Trades, Portfolio) with 0.73%, T Boone Pickens (Trades, Portfolio) with 0.25%, Simons with 0.14% and Royce with 0.03%.
