FPA Capital Fund

FPA Capital Fund

Last Update: 10-10-2016
Related: First Pacific Advisors
Steven Romick

Number of Stocks: 23
Number of New Stocks: 0

Total Value: $543 Mil
Q/Q Turnover: 3%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

FPA Capital Fund' s Profile & Performance

Profile

FPA Capital Fund has a concentrated portfolio and invest primarily in undervalued small to mid cap companies.

Robert Rodriquez has managed the FPA Capital Fund (FPPTX) and the FPA New Income Fund since the funds' inceptions in 1984. During his tenure, he has achieved an annualized return of 16.91% as of 9/30/2007. In the same period S&P 500 has returned 13.17% annually. Mr. Rodriguez is one of the few who warned investors about the financial crisis a few years earlier.

Web Page:http://www.fpafunds.com/

Investing Philosophy

FPA Capital Fund primarily invests in the stocks of smaller companies. He selects stocks based on specific fundamental criteria: strong balance sheets, free cash flow, an understandable and successful business strategy under capable management, and unique business characteristics. His purchases are concentrated in companies with relatively low Price/Normalized Earnings, low Price/Pretax Cash flow, low Price/Book Value, low Price/Replacement Value and low Market Cap/Total Revenues. Robert looks for companies with a track record of high returns on equity, and a long history. He sells stocks when the basis for investment has been revised, the stock is selling at a significant premium P/E to the market, profitability recovery has been attained, a management disappointment without expectation of recovery has occurred, or a superior alternative value has presented itself. His portfolio generally holds 25-45 equities. His investment outlook is typically 3-5 years, and he is not afraid to sit on the sidelines while waiting for the right opportunity.

Historical Allocation of Stock, Bonds, Cash

Total Holding History

Performance of FPA Capital Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
2015-17.161.19-18.3
2014-1.3113.69-15.0
201322.8532.39-9.5
3-Year Cumulative0.4 (0.1%/year)52.3 (15.1%/year)-51.9 (-15%/year)
20129.6916-6.3
20110.92.11-1.2
5-Year Cumulative11.2 (2.1%/year)80.4 (12.5%/year)-69.2 (-10.4%/year)
201024.2515.069.2
200953.7826.4627.3
2008-34.79-372.2
2007-0.395.49-5.9
20065.4215.79-10.4
10-Year Cumulative45.4 (3.8%/year)102 (7.3%/year)-56.6 (-3.5%/year)
200516.534.9111.6
200412.6210.881.7
200338.5428.689.9
2002-3.86-22.118.2
200138.13-11.8950.0
15-Year Cumulative251.2 (8.7%/year)107.5 (5%/year)143.7 (3.7%/year)
2000-3.08-9.16.0
199914.2421.04-6.8
1998-0.4228.58-29.0
199717.733.36-15.7
199637.7622.9614.8
20-Year Cumulative527.8 (9.6%/year)381.4 (8.2%/year)146.4 (1.4%/year)
199538.3937.580.8
199410.371.329.0
199316.7410.086.7
199221.577.6213.9
199164.5130.4734.0
25-Year Cumulative2138.7 (13.2%/year)937.3 (9.8%/year)1201.4 (3.4%/year)
1990-13.8-3.1-10.7
198924.331.69-7.4
198818.1116.611.5
198710.755.15.7
198612.5718.6-6.0
30-Year Cumulative3432.1 (12.6%/year)1824 (10.4%/year)1608.1 (2.2%/year)
198528.9531.6-2.6
198476.10.9

Top Ranked Articles

FPA Capital Fund Comments on For-Profit Education Stocks Guru stock highlight
Question 2: Is for-profit education destined for a slow death? Read more...
FPA Capital Fund Comments on Western Digital Corp Guru stock highlight
Now, let’s turn our attention to WDC. WDC (NASDAQ:WDC) is a stock the Fund has owned for a decade and one from which we have extracted substantial realized gains over the years. In October, WDC announced they would acquire Sandisk (NASDAQ:SNDK) for $19 billion, and many shareholders were surprised by WDC’s decision.

SNDK (NASDAQ:SNDK) is a major player in the NAND flash market and holds some of the most important NAND patents, for which it receives royalties, but some investors believe SNDK is lagging Samsung’s new NAND flash chip architecture (called 3D). NAND flash semiconductor chips are the chips used in Apple iPhones, Android phones, iPads, digital cameras, and a host of other technology equipment to store information and images.

Our perspective is that WDC will be able save a substantial Read more...
FPA Capital Comments on Western Digital Guru stock highlight
Western Digital (NASDAQ:WDC) designs, develops, manufactures, and sells hard disk drives (HDDs), and increasingly, solid-state drives (SSDs). The company’s hard disk drives are used in desktop and notebook computers, enterprise applications, and consumer electronic applications. Among the most profitable product areas for WDC is in the enterprise drive segment. Overall, WDC’s market share in the HDD industry is roughly 44%. During the last several years, the HDD industry has consolidated substantially, and the top three companies now control nearly 100% of the market. Furthermore, WDC’s vertically integrated business model makes it the lowest-cost producer of disk drives. It is also important to note that WDC management has done a superb job of returning the firm’s strong and consistent free cash flow to shareholders via buybacks and dividends. WDC also recently made a series of bold moves that could become game-changers for the industry. Read more...
FPA Capital Fund Buys More Shares of 5 Current Holdings Fund still likes companies it owns
The FPA Capital Fund (Trades, Portfolio) on Tuesday disclosed its investment activity for the second quarter which showed managers bought additional shares of seven holdings and bought no new holdings. Read more...
FPA Capital Reduces InterDigital Stake as Company's Market Price Blossoms InterDigital reached its 10-year high in price during the 3rd quarter
FPA Capital Fund (Trades, Portfolio), an investment firm that seeks long-term growth through the careful selection of common stocks and select fixed income securities, slashed its stake in InterDigital Inc. (NASDAQ:IDCC) during the third quarter, removing 359,582 shares of the company from its portfolio. The trade had a -3.79% impact on FPA Capital Fund (Trades, Portfolio)’s portfolio. The fund now owns 353,448 shares of InterDigital. Read more...
» More FPA Capital Fund Articles

Commentaries and Stories

  • Currently 4.00/5

Rating: 4.0/5 (1 vote)

FPA Capital Reduces InterDigital Stake as Company's Market Price Blossoms InterDigital reached its 10-year high in price during the 3rd quarter FPA Capital Fund - FPA Capital Reduces InterDigital Stake As Company's Market Price Blossoms
FPA Capital Fund (Trades, Portfolio), an investment firm that seeks long-term growth through the careful selection of common stocks and select fixed income securities, slashed its stake in InterDigital Inc. (NASDAQ:IDCC) during the third quarter, removing 359,582 shares of the company from its portfolio. The trade had a -3.79% impact on FPA Capital Fund (Trades, Portfolio)’s portfolio. The fund now owns 353,448 shares of InterDigital. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

FPA Capital Fund Comments on Interdigital Guru stock highlight
As value managers, we seek to increase the size of our positions when the market disagrees with our long-term view, and do the opposite when the market ceases to provide us with an adequate margin of safety. We don’t always get it right, but InterDigital, Inc. (NASDAQ:IDCC) epitomizes such behavior. When the market failed to recognize IDCC’s normalized earnings power, we reviewed our thesis, worked through our upside/downside case, and then took action by substantially increasing our position. Finally, this year, the seeds blossomed and we have substantially reduced our position. More...

  • Currently 5.00/5

Rating: 5.0/5 (3 votes)

FPA Capital Fund 3rd Quarter Commentary Review of holdings and economy FPA Capital Fund - FPA Capital Fund 3rd Quarter Commentary
Dear fellow shareholders, More...

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Rating: 0.0/5 (0 votes)

FPA Capital Fund Adds to 5 Holdings in 3rd Quarter Fund adds to 5 positions with no new buys FPA Capital Fund,Mariko Gordon,First Pacific Advis - FPA Capital Fund Adds To 5 Holdings In 3rd Quarter
The FPA Capital Fund (Trades, Portfolio) increased its positions in five holdings in the third quarter. The top three expansions were in Babcock and Wilcox Enterprises Inc. (NYSE:BW), Avnet Inc. (NYSE:AVT) and Rowan Companies PLC (NYSE:RDC). More...

FPA, FUND, ADDS, BUYS, THIRD QUARTER


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Rating: 0.0/5 (0 votes)

FPA Capital Buys Bank of America, Citigroup Firm's largest trades of the 2nd quarter are mostly buys FPA Capital Fund - FPA Capital Buys Bank Of America, Citigroup
Robert L. Rodriguez is the Chief Executive Officer of FPA Capital. The following are the firm’s largest trades of the second quarter: More...

FPA CAPITAL, BUYS, INVEST


  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

FPA Capital's Top Performing Second Quarter Sales 7 companies producing high returns FPA Capital Fund - FPA Capital's Top Performing Second Quarter Sales
FPA Capital Fund (Trades, Portfolio) has a concentrated portfolio and invests primarily in undervalued small to mid cap companies. During the second quarter of 2016, the firm traded some stocks. The following are the ones with the highest performance since that trade. More...

FPA CAPITAL, SALES, PERFORMANCE


  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

FPA Capital Fund 2nd Quarter 2016 Commentary Managers discuss the economy and holdings FPA Capital Fund - FPA Capital Fund 2nd Quarter 2016 Commentary
Introduction More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

FPA Capital Fund Continues to Buy Western Digital, Veeco The guru's largest buys during the last 2 quarters FPA Capital Fund,Ken Fisher,First Pacific Advisors - FPA Capital Fund Continues To Buy Western Digital, Veeco
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: More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

FPA Capital Fund Sells Apollo Education, Helmerich & Payne Largest sales by the fund in second quarter FPA Capital Fund - FPA Capital Fund Sells Apollo Education, Helmerich & Payne
FPA Capital Fund (Trades, Portfolio) has a concentrated portfolio and invests primarily in undervalued small-to-mid cap companies. During the first quarter, the firm sold shares in the following stocks: More...

FPA CAPITAL


  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

FPA Capital Fund Buys More Shares of 5 Current Holdings Fund still likes companies it owns FPA Capital Fund - FPA Capital Fund Buys More Shares Of 5 Current Holdings
The FPA Capital Fund (Trades, Portfolio) on Tuesday disclosed its investment activity for the second quarter which showed managers bought additional shares of seven holdings and bought no new holdings. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Companies' Prices Near 5-Year Lows Veeco Instruments, Alon USA Energy, Bristow Group and Unisys approach milestones FPA Capital Fund,Ken Fisher,Robert Karr,Joel Green - Companies' Prices Near 5-Year Lows
According to GuruFocus' list of five-year lows, these stocks have reached their five-year lows: Veeco Instruments Inc. (NASDAQ:VECO), Alon USA Energy Inc. (NYSE:ALJ), Bristow Group Inc. (NYSE:BRS) and Unisys Corp. (NYSE:UIS). More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

FPA Capital Comments on DeVry Guru stock highlight
In October 2014, an inter-agency task force was formed to share information about investigations into for-profit education. It included the Federal Trade Commission, Department of Justice, Veterans Administration, Consumer Financial Protection Bureau, Securities and Exchange Commission and numerous state Attorneys General. We have followed the regulatory developments closely, and over the previous six months, it appears that the fervor for prosecuting for-profit schools has increased meaningfully. Our analysis had previously assumed that the regulatory headwinds would diminish over time, primarily because three years of high-level regulatory scrutiny had not produced a substantial case against the industry’s “good actors.” However, the recent FTC lawsuit brought against DeVry (NYSE:DV), the pending FTC investigation of University of Phoenix, and the increased scrutiny by various AGs and military institutions have given us pause. We believe both schools continue to serve an important function in society, and that the regulatory scrutiny will indeed ultimately die down. But we now believe the costs of negative publicity, a tarnished brand, and regulatory More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

FPA Capital Comments on InterDigital Guru stock highlight
There has been—and will continue to be—tremendous growth in wireless communication. But it’s hard to predict the future market share of any individual company. Nokia and Ericsson were the major mobile phone players 15 to 20 years ago. Today, their phones are industry footnotes, and Apple and Samsung dominate. InterDigital (NASDAQ:IDCC) is a company that will allow us to participate in this growth without betting on which smart phone, tablet, or e-reader companies will hold the largest market share in the future. InterDigital’s role is to sell critical technology across the wireless industry. To make sure its technology maintains a vital place inside networks and devices, the company employs 175 engineers who work on new inventions and patents every day. To date, they have obtained or applied for about 20,000 patents, a testament to InterDigital’s innovative strength. The company also works with Standard Development Organizations to incorporate its technology into the standards that ensure that a Samsung Galaxy on Verizon’s network can communicate with an iPhone with service from China Telecom. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

FPA Capital Comments on Arris Guru stock highlight
Arris (NASDAQ:ARRS) provides cable operators with communication systems that make it possible for users to consume bandwidth. When customers demand faster internet speeds and more bandwidth to watch movies or upload pictures, the internet providers have to upgrade their infrastructure. This is where ARRS comes in, because it provides the hardware and software needed for expanding network capacity. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

FPA Capital Comments on Western Digital Guru stock highlight
Western Digital (NASDAQ:WDC) designs, develops, manufactures, and sells hard disk drives (HDDs), and increasingly, solid-state drives (SSDs). The company’s hard disk drives are used in desktop and notebook computers, enterprise applications, and consumer electronic applications. Among the most profitable product areas for WDC is in the enterprise drive segment. Overall, WDC’s market share in the HDD industry is roughly 44%. During the last several years, the HDD industry has consolidated substantially, and the top three companies now control nearly 100% of the market. Furthermore, WDC’s vertically integrated business model makes it the lowest-cost producer of disk drives. It is also important to note that WDC management has done a superb job of returning the firm’s strong and consistent free cash flow to shareholders via buybacks and dividends. WDC also recently made a series of bold moves that could become game-changers for the industry. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

FPA Capital Fund First Quarter 2016 Commentary Discussion of economy and holdings FPA Capital Fund - FPA Capital Fund First Quarter 2016 Commentary
Dear fellow shareholders, More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

FPA Capital's Largest 1st-Quarter Buys Increased stake in Western Digital has 2.3% impact on portfolio FPA Capital Fund,T Rowe Price Equity Income Fund,C - FPA Capital's Largest 1st-Quarter Buys
Robert Rodriquez has managed the FPA Capital Fund (Trades, Portfolio) and the FPA New Income Fund since the funds' inceptions in 1984. He manages a portfolio composed of 22 stocks; during the first quarter he bought shares in the following stocks: More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

FPA Reduces Position in Helmerich & Payne Nearly two-thirds of guru's 1st-quarter transactions were reductions FPA Capital Fund - FPA Reduces Position In Helmerich & Payne
FPA Capital Fund added to a few stakes and sold a few others in the first quarter, but roughly two-thirds of its transactions were reductions. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

FPA Capital Adds to Western Digital Stake Multiple good signs, strong financial statements may have been why fund added 261,330 shares to its portfolio FPA Capital Fund - FPA Capital Adds To Western Digital Stake
FPA Capital Fund added 261,330 shares to its stake in Western Digital Corp. (NASDAQ:WDC) on March 31. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

FPA Capital Fund Comments on Apollo Education Group Guru stock highlight
APOL (NASDAQ:APOL) is trading at less than book value, less than 10% of sales (net of cash), and less than 1x enterprise value-to-EBITDA. APOL is a very cheap stock, in our opinion, and we added to the position in the quarter.Let’s discuss APOL in greater detail. APOL declined 28% in the December quarter due to reporting lower than expected new student enrollment and a non-fundamental issue. The most important items, profits and free cash flow, met expectations. Incredible as it is irresponsible, the stock partly sold off because the Chairman of the Board received a margin call on stock he had pledged as collateral for a real estate loan he assumed many years ago. Per our discussion with APOL management, the loan was for a little over $25 million and it had a condition that provided that the loan would come due immediately if APOL declined below $10 a share. This occurred on October 22, when APOL announced its earnings, lower new student enrollments, and a $110 million acquisition in Germany. Shareholders initially More...

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