FPA Capital Fund

FPA Capital Fund

Last Update: 01-11-2016
Related: First Pacific Advisors
Steven Romick

Number of Stocks: 24
Number of New Stocks: 2

Total Value: $611 Mil
Q/Q Turnover: 5%

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 (%)
2014-1.3113.69-15.0
201322.8532.39-9.5
20129.6916-6.3
3-Year Cumulative33 (10%/year)74.6 (20.4%/year)-41.6 (-10.4%/year)
20110.92.11-1.2
201024.2515.069.2
5-Year Cumulative66.7 (10.8%/year)105.1 (15.5%/year)-38.4 (-4.7%/year)
200953.7826.4627.3
2008-34.79-372.2
2007-0.395.49-5.9
20065.4215.79-10.4
200516.534.9111.6
10-Year Cumulative104.6 (7.4%/year)109.4 (7.7%/year)-4.8 (-0.3%/year)
200412.6210.881.7
200338.5428.689.9
2002-3.86-22.118.2
200138.13-11.8950.0
2000-3.08-9.16.0
15-Year Cumulative310.8 (9.9%/year)86.4 (4.2%/year)224.4 (5.7%/year)
199914.2421.04-6.8
1998-0.4228.58-29.0
199717.733.36-15.7
199637.7622.9614.8
199538.3937.580.8
20-Year Cumulative948.7 (12.5%/year)554.6 (9.8%/year)394.1 (2.7%/year)
199410.371.329.0
199316.7410.086.7
199221.577.6213.9
199164.5130.4734.0
1990-13.8-3.1-10.7
25-Year Cumulative2229.5 (13.4%/year)893.3 (9.6%/year)1336.2 (3.8%/year)
198924.331.69-7.4
198818.1116.611.5
198710.755.15.7
198612.5718.6-6.0
198528.9531.6-2.6
30-Year Cumulative5398.1 (14.3%/year)2402.2 (11.3%/year)2995.9 (3%/year)
198476.10.9

Top Ranked Articles

FPA Capital Fund Buys Apollo Education The stake increased by 52% in the 4th quarter
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. Read more...
FPA Capital Fund Buys Sanderson Farms, Sells Barnes & Noble The Fund's top buys and top sales during the 4th quarter
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. Read more...
Reductions Lead FPA Capital Fund's 4th-Quarter Transactions Fund slashes stakes in Avnet, Arrow Electronics and Foot Locker
While it bought some stakes and added to others, more than one-third of FPA Capital Fund (Trades, Portfolio)’s transactions in the fourth quarter, which ended Dec. 31, 2015, were reductions of existing stakes. Two of them had impacts of 1% or greater on the Fund’s portfolio. Read more...
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 Noble Energy Guru stock highlight
The two other E&P investments we have are Noble Energy (NYSE:NBL) and SM Energy (SM). We chose to keep the NBL stock we received when NBL recently acquired Rosetta Resources. NBL has a diverse portfolio of low cost assets, balanced across commodities and regions. NBL management can grow production in 2016 with a greatly reduced capital budget should they choose to do so. They also have an opportunity to develop a massive gas resource off the coast of Israel where most of the production volumes would be at fixed prices under multi-year contracts, essentially creating a long duration and highly profitable stream of cash flow that would deserve a premium valuation multiple. Let us take a brief moment here to state that we voted against this deal as we had confidence that Rosetta Resource’s assets were of good quality and that the management team was selling them at very depressed levels. We pride ourselves on protecting our shareholders against permanent capital impairment but this was a takeunder17 so we were not successful. We congratulate the NBL management for a shrewd deal (one of the reasons we decided to keep the stock). Our third E&P company, SM, needs to do something to Read more...
» More FPA Capital Fund Articles

Commentaries and Stories

  • 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...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Reductions Lead FPA Capital Fund's 4th-Quarter Transactions Fund slashes stakes in Avnet, Arrow Electronics and Foot Locker FPA Capital Fund - Reductions Lead FPA Capital Fund's 4th-Quarter Transactions
While it bought some stakes and added to others, more than one-third of FPA Capital Fund (Trades, Portfolio)’s transactions in the fourth quarter, which ended Dec. 31, 2015, were reductions of existing stakes. Two of them had impacts of 1% or greater on the Fund’s portfolio. More...

  • Currently 4.50/5

Rating: 4.5/5 (2 votes)

FPA Capital Fund Comments on For-Profit Education Stocks Guru stock highlight
Question 2: Is for-profit education destined for a slow death? More...

  • Currently 2.00/5

Rating: 2.0/5 (1 vote)

FPA Capital Fund Comments on Atwood Guru stock highlight
During the third quarter, we sold our investment in Atwood (NYSE:ATW) and reinvested the proceeds in PTEN. There are many things to like about Atwood, including their young fleet of high-spec rigs, their significant revenue backlog, their industry leading margins and revenue efficiency, their track record of safe operations, and their seasoned board of directors. The problem with Atwood is they have debt maturing in the next three years. While we imagine the cycle may have turned by then, we always look for a margin of safety and have chosen to reinvest this capital into other energy names with more favorable balance sheets is beyond reproach. Unlike land drilling, if a rig runs out of work it costs a lot of money to store (particularly floating rigs). We do not know if the cycle will last beyond the time when the bulk of Atwood’s revenue backlog runs out. The recent credit facility amendment greatly reduced Atwood’s flexibility and puts shareholders in a position where if they guess wrong about when the cycle turns they may lose their entire investment. We were not willing to underwrite that. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

FPA Capital Fund Comments on Rowan Guru stock highlight
Rowan (NYSE:RDC) is an offshore driller. Offshore drilling is a dirty term among investors these days, but the industry has to exist. As great as shale is it can’t supply every barrel. RDC has a significant revenue backlog and a fleet of young high-spec rigs. They also have a self-help opportunity set to improve margins and drive efficiencies that they are already making tangible progress on. They do not have any financial commitments to pay for additional newbuild rigs, unlike many peers. And they have significant liquidity. Consider that their market cap is $2 billion. Against that, they have $200 million in cash and $800 million in cumulative free cash flow over the course of 2016/17 in our Low Case. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

FPA Capital Fund Comments on Noble Energy Guru stock highlight
The two other E&P investments we have are Noble Energy (NYSE:NBL) and SM Energy (SM). We chose to keep the NBL stock we received when NBL recently acquired Rosetta Resources. NBL has a diverse portfolio of low cost assets, balanced across commodities and regions. NBL management can grow production in 2016 with a greatly reduced capital budget should they choose to do so. They also have an opportunity to develop a massive gas resource off the coast of Israel where most of the production volumes would be at fixed prices under multi-year contracts, essentially creating a long duration and highly profitable stream of cash flow that would deserve a premium valuation multiple. Let us take a brief moment here to state that we voted against this deal as we had confidence that Rosetta Resource’s assets were of good quality and that the management team was selling them at very depressed levels. We pride ourselves on protecting our shareholders against permanent capital impairment but this was a takeunder17 so we were not successful. We congratulate the NBL management for a shrewd deal (one of the reasons we decided to keep the stock). Our third E&P company, SM, needs to do something to More...

  • Currently 3.00/5

Rating: 3.0/5 (1 vote)

5-Year Lows: 3D Systems Corp., Atwood Oceanics, Seacor Holdings, Rent-A-Center Inc. Companies that have reached their 5-year low prices FPA Capital Fund,Tom Gayner - 5-Year Lows: 3D Systems Corp., Atwood Oceanics, Seacor Holdings, Rent-A-Center Inc.
According to GuruFocus list of five-year lows, these guru stocks have reached their historical low prices: 3D Systems Corp., Atwood Oceanics Inc., Seacor Holdings Inc. and Rent-A-Center Inc. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

FPA Capital's Third Quarter 2015 Letter to Investors Disappointing quarterly results prompt soul-searching questions FPA Capital Fund - FPA Capital's Third Quarter 2015 Letter To Investors
2015 Q3 FPA Cap Commentary More...

FPA Capital Fund,quarterly shareholder letter


  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Green Square Capital's Top Buys in Q2 2015
At the end of the second quarter of 2015, the hedge fund Green Square Capital LLC reported a total value of its portfolio of $449,845,000 with a increase of 1.19% since the previous quarter. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

FPA Capital Fund Second Quarter 2015 Commentary
Introduction More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

5-year lows: Rowan Companies, Linn Energy LLC, Greif Inc, and Hatteras Financial Corp
According to GuruFocus list of 5-year lows, these Guru stocks have reached their 5-year lows: Rowan Companies, Linn Energy LLC, Greif Inc, and Hatteras Financial Corp. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

5-Year Lows: Atwood Oceanics Inc, HMS Holdings Corp, Advanced Micro Devices Inc, and Government Properties Income Trust
According to GuruFocus list of 5-year lows, these Guru stocks have reached their 5-year lows: Atwood Oceanics Inc, HMS Holdings Corp, Advanced Micro Devices Inc, and Government Properties Income Trust More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

FPA Capital Fund new buys in Q2 2015
FPA Capital Fund (Trades, Portfolio) has a concentrated portfolio composed of 24 stocks with a total value of $696 million and invest primarily in undervalued small to mid cap companies. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

FPA Capital Fund Sells Portions of 13 Stakes in Second Quarter FPA Capital Fund - FPA Capital Fund Sells Portions Of 13 Stakes In Second Quarter
The FPA Capital Fund (Trades, Portfolio) typically has roughly a 50-50 mix of buying and selling activity in a quarter, but most of its activity in the second quarter involved selling only. FPA didn’t sell any stakes in full, but it did sell portions of 13 existing stakes and added to just four. More...

FPA Capital Fund


  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

FPA Capital Fund Comments on Apollo Education Group Inc
Apollo (APOL) and DeVry (DV) were both poor performers in the quarter. There is no other way to say it, the second quarter numbers for Apollo were very disappointing – particularly the enrollment numbers. APOL has spent a lot of money on a new Learning Management System (LMS) for all University of Phoenix (UoP) students. This was a massive endeavor on the company’s part and will lead to a large differentiation experience for their students versus the competition. Unfortunately, like many new large software rollouts, the LMS rollout had a couple of bugs that needed to be fixed. For example, if your internet browser was updated to a new version, some of the automation links within LMS were not properly coded and the user experience diminished to the point where some students dropped out of the university. APOL believes the majority of the problems have been addressed and fixed, but management took its eye off the ball with respect to converting prospective students to new enrollees during the past quarter. Management indicated that More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

FPA Capital Fund Comments on Helmerich & Payne Inc and Ensco PLC
During the first quarter of 2015, we swapped our position in Ensco (“ESV”) for Helmerich and Payne (HP) (“H&P”) because we believe they offered similar upside but H&P has less downside risk. H&P is the country’s biggest and most profitable onshore drilling contractor. At the time of our decision, H&P’s dividend yield was smaller (4.55% vs 10.37%) but it was still substantial and more secure than ESV’s dividend. Since our swap, Ensco cut its dividend exactly 80% (as of the end of the first quarter H&P yielded 4.04% vs 2.85% for ESV). We agree with ESV’s decision to cut its dividend. The market was not valuing the company based on this large dividend and there might be better ways to use those funds today such as buying back shares or purchasing distressed assets on the cheap. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

FPA Capital Fund First Quarter 2015 Commentary
You should consider the Fund’s investment objectives, risks, and charges and expenses carefully before you invest. The Prospectus details the Fund's objective and policies, charges, and other matters of interest to the prospective investor. Please read this Prospectus carefully before investing. The Prospectus may be obtained by visiting the website at www.fpafunds.com, by email at [email protected], toll-free by calling 1-800-982-4372 or by contacting the Fund in writing. More...

Add Notes, Comments

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

User Comments

Melissawilliam09
ReplyMelissawilliam09 - 8 months ago
I can see your full investment in this brilliant post. Watching and off course learning from it.

SamishLeather Dwayne Johnson Leather Jacket

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)

GuruFocus Premium Plus Membership

FEEDBACK