FPA Capital Fund

FPA Capital Fund

Last Update: 07-11-2016
Related: First Pacific Advisors
Steven Romick

Number of Stocks: 25
Number of New Stocks: 0

Total Value: $529 Mil
Q/Q Turnover: 6%

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 Sells Apollo Education, Helmerich & Payne Largest sales by the fund in second quarter
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: 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...
Companies' Prices Near 5-Year Lows Veeco Instruments, Alon USA Energy, Bristow Group and Unisys approach milestones
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). 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 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. Read more...
» More FPA Capital Fund Articles

Commentaries and Stories

  • 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...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

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 More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

FPA Capital Fund Comments on Patterson-UTI Energy Guru stock highlight
PTEN (NASDAQ:PTEN) is the second largest land-based drilling rig operator after Helmerich & Payne; the company also owns a fleet of pressuring pump equipment to help shale oil & gas companies fracture rocks that contain hydrocarbons. During the current market down turn, the top 10 pressure pumping companies, including PTEN, have increased their aggregate market share from 60% to 75%. PTEN has a strong balance sheet at 1x debt/EBITDA, and it has no public debt outstanding. Despite oil prices being down 70% from mid-2014, PTEN’s consensus free cash flow expectation for 2016 is $0.75 per share. PTEN is trading at less than book value and 3.5x normalized EBITDA, which we believe are attractive valuation characteristics. We added to the position in the most recent quarter. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

FPA Capital Fund Comments on Noble Energy Guru stock highlight
Let’s start with energy, as we know it is top of mind for many of our shareholders. A crucial factor we want to express is that the energy companies in the portfolio do not have any near-term refinancing risk, unlike many other energy companies that have large sums of debt coming due this year or next. A very recent example of how a strong balance sheet can benefit shareholders is Noble Energy (NYSE:NBL). NBL refinanced some of its intermediate debt maturities with shorter-term debt at substantially lower interest rates in early January 2016. Today, most energy companies seeking to refinance their debt would experience much higher interest payments, if they could even access the credit market. NBL was not only able to access the credit market but also lower its annual interest expense by $50 million for the same amount of debt outstanding.When we assess the energy stock’s impact on the FPA Capital Fund More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

FPA Capital Fund 4th Quarter 2015 Commentary Commentary on the markets and important holdings from First Pacific Advisors FPA Capital Fund - FPA Capital Fund 4th Quarter 2015 Commentary
Dear Fellow Shareholders, More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

FPA Capital Fund Buys Apollo Education The stake increased by 52% in the 4th quarter FPA Capital Fund,First Pacific Advisors,Larry Robb - FPA Capital Fund Buys Apollo Education
FPA Capital Fund (Trades, Portfolio) has a concentrated portfolio and invests primarily in undervalued small- to mid-cap companies. It manages a portfolio composed of 24 stocks with a total value of $611 million. Following are the stakes the firm increased during the fourth quarter. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

FPA Capital Fund Buys Sanderson Farms, Sells Barnes & Noble The Fund's top buys and top sales during the 4th quarter FPA Capital Fund,Manning & Napier Advisors Inc.,Ro - FPA Capital Fund Buys Sanderson Farms, Sells Barnes & Noble
FPA Capital Fund (Trades, Portfolio) acquired new stocks and exited some during the fourth quarter. FPA Capital has a concentrated portfolio and invests primarily in undervalued small to mid-cap companies. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Companies With High Dividend Yields in FPA Capital Fund's Portfolio Helmerich & Payne, Western Digital and Noble Energy are stalwarts on list FPA Capital Fund,First Pacific Advisors,Pioneer In - Companies With High Dividend Yields In FPA Capital Fund's Portfolio
FPA Capital Fund (Trades, Portfolio) has a concentrated portfolio composed of 25 stocks and invests primarily in undervalued small to mid-cap companies. Following are the stocks that have high dividend yields in that portfolio. More...

Add Notes, Comments

If you want to ask a question or report a bug, please create a support ticket.

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK