FPA Capital Fund (Trades, Portfolio) has a concentrated portfolio and invests primarily in undervalued small- to mid-cap companies. In both the first and second quarters, the guru bought shares in the following stocks:
Veeco Instruments Inc. (VECO)
The fund increased its stake by 8.71% during the first quarter and in the second quarter increased its stake by 6.49%. The fund holds 2.41% of outstanding shares in the company that designs, manufactures and markets thin film equipment. Its equipment is sold to make electronic devices including LED, power electronics, wireless devices, hard disk drives and semiconductors.
First-quarter revenue of $78 million was down 21% compared with the same period last year, and GAAP net loss per share was 40 cents and non-GAAP net loss per share was 15 cents.
The largest shareholder among the gurus is Ken Fisher (Trades, Portfolio) with 4.52% of outstanding shares followed by First Pacific Advisors (Trades, Portfolio) with 4.37%, Jim Simons (Trades, Portfolio) with 3.24%, Arnold Schneider (Trades, Portfolio) with 0.49%, Barrow, Hanley, Mewhinney & Strauss with 0.34% and Paul Tudor Jones (Trades, Portfolio) with 0.04%.
Babcock & Wilcox Enterprises Inc. (BW)
During the first quarter the guru increased its stake by 7.78% and by 20.51% in the second quarter. The fund holds 2.71% of outstanding shares in the company, which is engaged in the manufacturing of fossil and renewable power generation equipment. It offers a broad suite of boiler products and environmental systems and services for power and industrial uses.
Revenue was $404.1 million during the first quarter, an increase of 1.8% from the first quarter of 2015. GAAP earnings per share for the first quarter were 20 cents compared to 21 cents in the first quarter of 2015.
Mariko Gordon (Trades, Portfolio) is the company's largest shareholder among the gurus with 4.93% of outstanding shares followed by First Pacific Advisors (Trades, Portfolio) with 3.47%, Steven Cohen (Trades, Portfolio) with 0.39%, Simons with 0.28%, Charles Brandes (Trades, Portfolio) with 0.1% and Joel Greenblatt (Trades, Portfolio) with 0.01%.
Houghton Mifflin Harcourt Co. (HMHC)
The fund increased its stake by 98.65% during the first quarter and in the second quarter increased it by 179.04%. The fund holds 0.94% of outstanding shares in the company that provides content, services and technology to both educational institutions and consumers, reaching more than 50 million students in more than 150 countries. It also publishes trade and reference materials.
First-quarter net sales grew 27%, and billing increased 13%. The company repurchased more than 1.5 million shares for approximately $31 million under its share repurchase program during the first quarter.
The largest shareholder among the gurus is Manning & Napier Advisors Inc. with 3.42% of outstanding shares followed by Ron Baron (Trades, Portfolio) with 1.61%, John Keeley (Trades, Portfolio) with 1.09%, First Pacific Advisors (Trades, Portfolio) with 0.79%, Simons with 0.41% and Greenblatt with 0.24%.
Dana Holding Corp. (DAN)
The guru increased its stake by 0.32% during the first quarter and in the second quarter increased it by 13.56%. The fund holds 1.47% of the company's outstanding shares. The company provides technology driveline, sealing and thermal-management products for vehicle manufacturers in the light vehicle, medium/heavy vehicle and off-highway markets.
First-quarter sales totaled $1.55 billion compared with $1.61 billion in 2015 and net income attributable to Dana for the second quarter was $53 million, compared with $59 million a year ago.
Richard Pzena (Trades, Portfolio) is the company's largest shareholder among the gurus, with 3.69% of outstanding shares followed by Mario Gabelli (Trades, Portfolio) with 3.51%, First Pacific Advisors (Trades, Portfolio) with 2.65%, Chuck Royce (Trades, Portfolio) with 0.73%, Donald Smith (Trades, Portfolio) with 0.64%, Greenblatt with 0.52%, Fisher with 0.46%, Cohen with 0.21% and Barrow, Hanley, Mewhinney & Strauss with 0.16%.
Aaron's Inc. (AAN)
The fund increased its stake by 13.24% during the first quarter and in the second quarter increased it by 12.15%. The fund holds 1.63% of outstanding shares in the company, a specialty retailer of furniture, consumer electronics, computers, appliances and household accessories. Its business segments are Sales and Lease Ownership, Progressive, HomeSmart, Franchise and Manufacturing.
First-quarter total revenue grew 4%, and net earnings increased 0.9% to $49.7 million compared with $49.2 million in the prior-year period. The company reported non-GAAP diluted EPS were 71 cents compared with 73 cents last year.
The largest shareholder among the gurus is Diamond Hill Capital (Trades, Portfolio) with 4.33% of outstanding shares followed by First Pacific Advisors (Trades, Portfolio) with 3.02%, Gabelli with 1.47%, Brandes with 0.49%, Tom Gayner (Trades, Portfolio) with 0.45% and David Dreman (Trades, Portfolio) with 0.18%.
Western Digital Corp. (WDC)
The guru increased its stake by 44.26% during the first quarter and by 19.43% in the second quarter. The fund holds 1.53% of the company's outstanding shares. The company is a developer, manufacturer and provider of data storage solutions that enable consumers, businesses, governments and other organizations to create, manage, experience and preserve digital content. Its products include HDDs and SSDs.
During the second quarter the company generated $598 million in cash from operations, ending with total cash and cash equivalents of $5.4 billion and reported revenue of $3.3 billion and net income of $251 million, or $1.07 per share.
T Rowe Price Equity Income Fund (Trades, Portfolio) is the company's largest shareholder among the gurus with 1.53% of outstanding shares followed by Brandes with 0.97%, First Pacific Advisors (Trades, Portfolio) with 0.79%, Greenblatt with 0.52%, Dreman with 0.02%, Jones with 0.01% and Manning & Napier Advisors with 0.01%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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