The FPA Capital Fund (Trades, Portfolio), a Los Angeles-based institutional money management fund, employs a disciplined approach to value investing that seeks superior long-term returns while maintaining a focus on capital preservation. During the first quarter, the fund bought shares of the following stocks:
The fund bought 489,820 shares of Vista Outdoor Inc. (VSTO, Financial), giving it 2.02% portfolio space.
The company designs, develops and manufactures ammunition, long guns and related equipment. The company's business segments are shooting sports and outdoor products. Its brands include Fusion, Blazer, CCI and Alliant Powder.
GuruFocus gives the stock a profitability and growth rating of 5 out of 10. The return on equity (ROE) of -9.22% and return on assets (ROA) of -15.01% are underperforming 90% of the companies in the Global Leisure industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio of 0.04 is below the industry median of 0.81.
The largest shareholder of the company among the gurus is First Eagle Investment (Trades, Portfolio) with 8.19% of outstanding shares, followed by Keeley Asset Management Corp (Trades, Portfolio) with 1.37%, First Pacific Advisors (Trades, Portfolio) with 0.95%, Robert Olstein (Trades, Portfolio) with 0.36% and Paul Tudor Jones (Trades, Portfolio) with 0.02%.
FPA Capital bought a 380,120-share stake in Akorn Inc. (AKRX, Financial), expanding the portfolio by 1.83%.
Akorn is a pharmaceutical company that develops, manufactures and markets generic and branded prescription pharmaceuticals and branded as well as private-label, over-the-counter consumer health products and animal health pharmaceuticals.
GuruFocus gives the stock a profitability and growth rating of 9 out of 10. The ROE of 24.93% and ROA of 9.45% are outperforming 96% of the companies in the Global Drug Manufacturers - Specialty and Generic industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.25 is below the industry median of 3.09.
John Paulson (Trades, Portfolio) is the largest shareholder of the company among the gurus with 6.98% of outstanding shares, followed by Columbia Wanger (Trades, Portfolio) with 0.95%, Richard Snow (Trades, Portfolio) with 0.31%, Steven Cohen (Trades, Portfolio) with 0.25%, Lee Ainslie (Trades, Portfolio) with 0.12%, Joel Greenblatt (Trades, Portfolio) with 0.12%, First Pacific Advisors with 0.11% and Mario Gabelli (Trades, Portfolio) with 0.05%.
The fund added to its position in Houghton Mifflin Harcourt Co. (HMHC, Financial) by 51.17%. The trade had an impact of 1.49% on the portfolio.
The company provides content, services and technology to both educational institutions and consumers, reaching over 50 million students in more than 150 countries. It also publishes trade and reference materials.
GuruFocus gives the stock a profitability and growth rating of 3 out of 10. The ROE of -27.85% and ROA of -9.66% are underperforming 84% of the companies in the Global Education and Training Services industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio of 0.40 is below the industry median of 2.42.
The largest shareholder of the company among the gurus is Manning & Napier Advisors Inc. with 2.97% of outstanding shares, followed by First Pacific Advisors with 2.41%, FPA Capital with 1.76%, Chuck Royce (Trades, Portfolio) with 0.92%, Jim Simons (Trades, Portfolio) with 0.49% and Jones with 0.05%.
The fund increased its SM Energy Co. (SM, Financial) stake by 55.12%, impacting the portfolio by 0.79%.
It is an energy company engaged in the acquisition, exploration, development and production of oil, gas and NGLs in onshore North America.
GuruFocus gives the stock a profitability and growth rating of 4 out of 10. The ROE of -41.84% and ROA of -13.51% are underperforming 75% of the companies in the Global Oil and Gas Exploration and Production industry. Financial strength has a rating of 3 out of 10. The cash-debt ratio of 0.39 is below the industry median of 0.51.
Sarah Ketterer (Trades, Portfolio) is the largest shareholder of the company among the gurus with 1.88% of outstanding shares, followed by Cohen with 1.15%, First Pacific Advisors with 0.51%, Keeley Asset Management Corp. with 0.12%, Caxton Associates (Trades, Portfolio) with 0.04% and Jeremy Grantham (Trades, Portfolio) with 0.02%.
FPA Capital increased its holding of Babcock & Wilcox Enterprises Inc. (BW, Financial) by 16.86%. The trade had an impact of 0.62% on the portfolio.
The company is engaged in the manufacturing of fossil and renewable power generation equipment. It offers an array of boiler products and environmental systems, and services for power and industrial uses.
GuruFocus gives the stock a profitability and growth rating of 4 out of 10. The ROE of -17.48% and ROA of -7.31% are underperforming 86% of the companies in the Global Electronic Components industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio of 6.73 is above industry median of 1.55.
The largest shareholder of the company among the gurus is First Pacific Advisors with 8.09% of outstanding shares, followed by Mariko Gordon (Trades, Portfolio) with 6.35%, Simons with 0.66%, Charles Brandes (Trades, Portfolio) with 0.47% and Jones with 0.02%.
The fund added to its ARRIS International PLC (ARRS, Financial) stake by 5.45%, expanding the portfolio by 0.43%.
The company provides entertainment and communications solutions. It provides Customer Premises Equipment, including set-top, gateway, DSL and cable modem; and Network and Cloud including video infrastructure.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 0.65% and ROA of 0.26% are outperforming 61% of the companies in the Global Communication Equipment industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.48 is below the industry median of 2.61.
Hotchkis & Wiley is the largest shareholder of the company among the gurus with 4.9% of outstanding shares, followed by Alan Fournier (Trades, Portfolio) with 1.04%, FPA Capital Fund with 0.83%, Leon Cooperman (Trades, Portfolio) with 0.73%, Greenblatt with 0.39%, NWQ Managers (Trades, Portfolio) with 0.32%, Royce with 0.29%, Simons with 0.26% and Cohen with 0.22%.
The fund increased its stake in Rowan Companies PLCÂ (RDC, Financial) by 16%. The transaction had an impact of 0.42% on the portfolio.
The company provides offshore oil and gas contract drilling services, utilizing a fleet of 27 self-elevating mobile offshore jack-up drilling units and four ultra-deepwater drill ships.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 6.39% and ROA of 3.75% are outperforming 82% of the companies in the Global Oil abd Gas Drilling industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.47 is above the industry median of 0.27.
The largest shareholder of the company among the gurus is First Pacific Advisors with 1.37% of outstanding shares, followed by Richard Pzena (Trades, Portfolio) with 0.79%, Greenblatt with 0.64%, Gabelli with 0.22%, Grantham with 0.06% and Jones with 0.02%.
FPA Capital increased its position in Cimarex Energy Co. (XEC, Financial) by 5%. The trade had an impact of 0.22% on the portfolio.
It is an oil and gas exploration and production company with operations focused in the Mid-Continent region and the Permian Basin.
GuruFocus gives the stock a profitability and growth rating of 5 out of 10. While the ROE of -17.31% is underperforming the sector, the ROA of -9.02% is outperforming 50% of the companies in the Global Oil and Gas Exploration and Production industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.44 is below the industry median of 0.72.
Diamond Hill Capital (Trades, Portfolio) is the largest shareholder of the company among the gurus with 3.43% of outstanding shares, followed by Cohen with 0.85%, Pioneer Investments (Trades, Portfolio) with 0.33%, Columbia Wanger with 0.24%, FPA Capital Fund with 0.21%, Charles de Vaulx (Trades, Portfolio) with 0.16%, Ray Dalio (Trades, Portfolio) with 0.02% and Caxton Associates with 0.01%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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