FPA Capital Fund

Last Update: 07-12-2018
Related: First Pacific Advisors
Steven Romick

Number of Stocks: 21
Number of New Stocks: 0

Total Value: $242 Mil
Q/Q Turnover: 8%

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

FPA Capital Fund' s Profile & Performance

Profile

FPA Capital Fund, Inc. (FPPTX) seeks long-term growth through investing primarily in carefully selected common stocks and select fixed income securities.

-Fundamental bottom-up, deep value stock picking with economic and industry point of view
-Capitalize on best ideas with concentrated portfolios
-Focus on long term, turnover averaging less than 20% over 20 years

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

Investing Philosophy

FPA Capital Fund primarily invests in the stocks of smaller companies. It 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. The fund's 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. The fund looks for companies with a track record of high returns on equity, and a long history. It 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. The fund's portfolio generally holds 25-45 equities and its investment outlook is typically 3-5 years.

Historical Allocation of Stock, Bonds, Cash

Total Holding History

Performance of FPA Capital Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
2017-5.1121.71-26.8
201622.8611.9910.9
2015-17.161.24-18.4
3-Year Cumulative-3.4 (-1.2%/year)38 (11.3%/year)-41.4 (-12.5%/year)
2014-1.3113.47-14.8
201322.8532.3-9.4
5-Year Cumulative17.1 (3.2%/year)107.2 (15.7%/year)-90.1 (-12.5%/year)
20129.6915.99-6.3
20110.91.9-1.0
201024.2515.059.2
200953.7826.3527.4
2008-34.79-36.792.0
10-Year Cumulative61.5 (4.9%/year)125 (8.4%/year)-63.5 (-3.5%/year)
2007-0.395.14-5.5
20065.4215.85-10.4
200516.534.8311.7
200412.6210.71.9
200338.5428.1910.4
15-Year Cumulative208.3 (7.8%/year)307.7 (9.8%/year)-99.4 (-2%/year)
2002-3.86-21.5817.7
200138.13-11.7649.9
2000-3.08-9.756.7
199914.2420.4-6.2
1998-0.4228.7-29.1
20-Year Cumulative351.4 (7.8%/year)294.5 (7.1%/year)56.9 (0.7%/year)
199717.733.47-15.8
199637.7622.4915.3
199538.3938.040.3
199410.370.410.0
199316.7410.086.7
25-Year Cumulative1205 (10.8%/year)883.9 (9.6%/year)321.1 (1.2%/year)
199221.577.6213.9
199164.5130.4734.0
1990-13.8-3.1-10.7
198924.331.69-7.4
198818.1116.611.5
30-Year Cumulative3202.9 (12.4%/year)1955.8 (10.6%/year)1247.1 (1.8%/year)
198710.755.15.7
198612.5718.6-6.0
198528.9531.6-2.6
198476.10.9

Top Ranked Articles

FPA Capital Fund Picks Up 5 Stocks in 1st Quarter Fund’s largest new position is in an oil and gas services company
The FPA Capital Fund (Trades, Portfolio) released its first-quarter portfolio this week, listing five new positions. Read more...
FPA: 5 Reasons Oil Bears Are Wrong FPA Capital, which achieved 13% annualized returns since 1984, just published its 4th-quarter commentary, taking a bullish stance on oil
The FPA Capital Fund (TradesPortfolio)'s Arik Ahitov just sent out its fourth-quarter 2017 commentary. It is an extremely interesting piece because of the firm's variant view on energy. Ahitov sees oil going higher and believes energy stocks are lagging fundamental developments in reality because investors are overly bearish, if not apathetic. He is not wrong, oil has quietly doubled up from its lows. However, energy is the cheapest industry within the S&P 500. It is also one of few industries where insiders are buying at a healthy clip. All this data is tracked by GuruFocus. FPA looks at five important bear arguments on oil and discredits them all: Read more...
FPA Capital Fund Buys Graphic Packaging, Spirit Airlines Firm's largest buys of the second quarter
The money management firm, FPA Capital Fund (Trades, Portfolio) bought shares in the following stocks in the first quarter. Read more...
FPA Capital Fund Buys Federated Investors, Exits 4 Other Positions The fund divested one of its largest holdings in 3rd quarter
The FPA Capital Fund (Trades, Portfolio) established one new holding and exited four others during the third quarter. Read more...
FPA Capital Fund 2nd-Quarter 2018 Commentary Discussion of holdings and market
FPA Capital Fund (Trades, Portfolio) (the “Fund”) was up 3.41% for the second quarter of 2018. Small capitalization indices continue to outperform large cap indices (the Russell 2500 Index was up 5.71% year-to-date vs. S&P 500 Index's 3.43% increase) .1 This major shift toward small cap stocks is likely due to the belief that smaller U.S. companies will fare better than larger U.S. companies during a trade war. It remains to be seen whether this simple reasoning will prove to be correct. But even if that premise is correct, are investors getting paid enough for the small-cap risk? The Russell 2500 Index is trading at a 33x earnings multiple vs. S&P 500 Index's 21x multiple2. Value remains out of favor (the Russell 2500 Growth Index up 8.04% year-to-date vs. Russell 2500 Value Index's 3% increase). Looking at a more relevant peer group as described by Morningstar3, we were in the 39th percentile of our category year-to-date as of June 30. Read more...
» More FPA Capital Fund Articles

Commentaries and Stories

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FPA Capital Comments on Cision Ltd. Guru stock highlight
As part of our effort to improve portfolio quality without sacrificing our conservative standards on valuation, we initiated a position in Cision Ltd. (NYSE:CISN) during the first quarter. At the time of underwriting, CISN was just six months removed from its IPO, poorly covered by the street, and was trading at a significant discount to other vertical software peers. More...

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FPA Capital Comments on Tenneco Guru stock highlight
Tenneco (NYSE:TEN) is one of the cheapest auto parts supplier stocks in the market today, trading at about 4.0x next 12-month EBITDA. Peers trade at much higher multiples -- nearly 7x next 12-month EBITDA, reflecting investor fear that Tenneco's exposure to the internal combustion engine (ICE) will ultimately send its business into a long-term secular decline. More...

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FPA Capital Comments on Cimarex Energy Guru stock highlight
XEC has historically been a price taker that favors flexibility in order to sustain corporate-level returns above its cost of capital, and as such, has minimal hedging on the books to offset wide price differentials over the next year. The stock has been under pressure for this reason and because management has opted to defer returning capital to shareholders in favor of investing in higher-return growth opportunities (which they stress test for 10%+ corporate level ROICs at $40 per barrel oil). This came at a time when E&P's were (rightfully) being chastised for destroying shareholder value with overinvestment (or poorly timed investments?) and asked to prioritize dividends and share repurchases over volume growth. Although we understand this rationale quite well, we do not believe in putting every E&P in the same bucket, especially one like XEC, which we believe is a top-tier capital allocator compared to its peers. More...

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FPA Capital Fund 2nd-Quarter 2018 Commentary Discussion of holdings and market FPA Capital Fund - FPA Capital Fund 2nd-Quarter 2018 Commentary
FPA Capital Fund (Trades, Portfolio) (the “Fund”) was up 3.41% for the second quarter of 2018. Small capitalization indices continue to outperform large cap indices (the Russell 2500 Index was up 5.71% year-to-date vs. S&P 500 Index's 3.43% increase) .1 This major shift toward small cap stocks is likely due to the belief that smaller U.S. companies will fare better than larger U.S. companies during a trade war. It remains to be seen whether this simple reasoning will prove to be correct. But even if that premise is correct, are investors getting paid enough for the small-cap risk? The Russell 2500 Index is trading at a 33x earnings multiple vs. S&P 500 Index's 21x multiple2. Value remains out of favor (the Russell 2500 Growth Index up 8.04% year-to-date vs. Russell 2500 Value Index's 3% increase). Looking at a more relevant peer group as described by Morningstar3, we were in the 39th percentile of our category year-to-date as of June 30. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

FPA Capital Fund Buys Graphic Packaging, Spirit Airlines Firm's largest buys of the second quarter FPA Capital Fund - FPA Capital Fund Buys Graphic Packaging, Spirit Airlines
The money management firm, FPA Capital Fund (Trades, Portfolio) bought shares in the following stocks in the first quarter. More...

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FPA Capital Fund Axes 4 Positions in 2nd Quarter Helmerich & Payne is fund’s largest trade of the quarter FPA Capital Fund - FPA Capital Fund Axes 4 Positions In 2nd Quarter
The FPA Capital Fund (Trades, Portfolio) disclosed it exited four positions when it released its second-quarter portfolio this week. More...

FPA CAPITAL FUND, SELLS, 2Q


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FPA Capital Fund 1st-Quarter 2018 Commentary Review of holdings and markets FPA Capital Fund - FPA Capital Fund 1st-Quarter 2018 Commentary
For the fiscal year ending and quarter ending on March 31, 2018, the fund was down by -4.05% and - 2.65%, respectively. In many cases, our companies’ earnings have grown, but because their share prices have not kept up with earnings, their multiples have compressed. More...

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5 Energy Stocks Gurus Are Buying Investors have positions in these popular stocks in their portfolios Alan Fournier,FPA Capital Fund - 5 Energy Stocks Gurus Are Buying
According to the GuruFocus All-In-One Screener, the following energy stocks are popular among gurus. More...

  • Currently 4.80/5

Rating: 4.8/5 (5 votes)

FPA Capital Fund Picks Up 5 Stocks in 1st Quarter Fund’s largest new position is in an oil and gas services company FPA Capital Fund - FPA Capital Fund Picks Up 5 Stocks In 1st Quarter
The FPA Capital Fund (Trades, Portfolio) released its first-quarter portfolio this week, listing five new positions. More...

FPA CAPITAL, BUYS, 1Q


  • Currently 4.50/5

Rating: 4.5/5 (2 votes)

FPA: 5 Reasons Oil Bears Are Wrong FPA Capital, which achieved 13% annualized returns since 1984, just published its 4th-quarter commentary, taking a bullish stance on oil FPA Capital Fund - FPA: 5 Reasons Oil Bears Are Wrong
The FPA Capital Fund (TradesPortfolio)'s Arik Ahitov just sent out its fourth-quarter 2017 commentary. It is an extremely interesting piece because of the firm's variant view on energy. Ahitov sees oil going higher and believes energy stocks are lagging fundamental developments in reality because investors are overly bearish, if not apathetic. He is not wrong, oil has quietly doubled up from its lows. However, energy is the cheapest industry within the S&P 500. It is also one of few industries where insiders are buying at a healthy clip. All this data is tracked by GuruFocus. FPA looks at five important bear arguments on oil and discredits them all: More...

OIL, ENERGY, CRUDE,


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FPA Capital Curbs Arris, Western Digital Positions, Exits Foot Locker The fund's largest sales of the 4th quarter FPA Capital Fund - FPA Capital Curbs Arris, Western Digital Positions, Exits Foot Locker
In the fourth quarter, the FPA Capital Fund (Trades, Portfolio) reduced or exited its positions in the following stocks. More...

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FPA Capital Fund Establishes 4 New Positions in 4th Quarter Market-beating fund also adds to InterDigital FPA Capital Fund - FPA Capital Fund Establishes 4 New Positions In 4th Quarter
The FPA Capital Fund (Trades, Portfolio) disclosed its fourth-quarter portfolio this week, listing four new positions. More...

FPA CAPITAL, BUYS, 4Q, 2017


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6 Bargain Stocks With Growing Earnings Allegiant, Axis Capital among companies increasing their profitability Columbia Wanger,FPA Capital Fund - 6 Bargain Stocks With Growing Earnings
Companies growing their earnings per share (EPS) are often good investments as they can return a solid profit to investors. According to the discount cash flow (DCF) calculator, the following undervalued companies have grown their EPS over a five-year period. More...

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FPA Capital Fund 3rd Quarter 2017 Commentary Client letter FPA Capital Fund - FPA Capital Fund 3rd Quarter 2017 Commentary
Introduction More...

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Rating: 4.0/5 (1 vote)

FPA Capital Fund Buys Federated Investors, Exits 4 Other Positions The fund divested one of its largest holdings in 3rd quarter FPA Capital Fund,Chuck Royce,First Pacific Advisor - FPA Capital Fund Buys Federated Investors, Exits 4 Other Positions
The FPA Capital Fund (Trades, Portfolio) established one new holding and exited four others during the third quarter. More...

FPA CAPITAL, BUYS, SELLS, TRADE, 3Q, 2017


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FPA Capital Sells Western Digital, Arris, Aaron's The fund's largest 3rd-quarter sales FPA Capital Fund,First Pacific Advisors,Charles Br - FPA Capital Sells Western Digital, Arris, Aaron's
FPA Capital Fund (Trades, Portfolio) is an institutional money management firm and manages a portfolio composed of 19 stocks with a total value of $306 million. During the third quarter the fund sold shares in the following stocks: More...

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FPA Capital Comments on Amazon Guru stock highlight
For the second quarter, as mentioned earlier, large-capitalized stocks performed better than small-cap stocks. The NASDAQ was the best performer, helped by the gain achieved by the omnipresent Amazon (NASDAQ:AMZN) and other mega-cap technology stocks. While different styles generally have some dispersion in returns from quarter to quarter, this past period was very dramatic. We expect this wide dispersion in returns to narrow in the future.In last quarter’s letter, we discussed the trend of investors allocating more of their capital to passive strategies like index funds and exchange-traded funds (ETFs) and away from active managers. AMZN and other stocks in the S&P 500 are where the large flows of capital have headed. It is worth noting that the 2017 ETF inflows, depicted below, are through the middle of June, so we are on pace to double the record inflows experienced last year. Currently, passive investors own roughly 15% of AMZN’s equity through index More...

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FPA Capital Comments on Allegiant Travel Guru stock highlight
The one new stock that has not been in the portfolio in the past is Allegiant Travel (NASDAQ:ALGT). ALGT is a no-frills, discount airline operator that caters to the budget-minded leisure customer. One way ALGT saves money for its passengers is by flying into and out of smaller regional airports. For example, instead of flying into Orlando International Airport in Florida, ALGT operates out of the Orlando Sanford International Airport, which is roughly 25 miles north of the bigger international airport. Further, because of its unique focus on smaller airports and cheaper, used aircraft, 81% of ALGT’s scheduled routes have no competition. ALGT also is transitioning its fleet to Airbus A319 and A320 planes. Those planes are fuel efficient, and they use the similar engines and parts, which allows for much lower maintenance costs.ALGT has declined roughly 30% from its peak a couple of years ago, partly due to flight operation issues with its older MD-80 planes, and partly because of lower operating profits tied More...

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FPA Capital Comments on Babcock & Wilcox Enterprises Guru stock highlight
Babcock & Wilcox Enterprises (NYSE:BW) also performed well in the quarter. We discussed BW in our first quarter letter and pointed out that management made a poor strategic decision in its fast-growing renewables business, and that the stock was hit hard during that quarter for that mistake. Subsequent to publishing our first-quarter letter, BW hosted a quarterly earnings conference call and provided positive news on the company’s progress in fixing its problems. The near-term stock price performance now largely rests on the company’s ability to continue fixing the renewables problems and preventing further cost overruns in that division.During the second quarter, we added three new stocks to the portfolio and eliminated three other companies. The three new stocks are in three different industries: one is an airline, another is a financial services company, and the other is a retailer. Two of the new stocks are what we refer to as ‘old friends’ because the Fund has invested in the companies before. More...

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FPA Capital Comments on Aaron’s Inc Guru stock highlight
Let’s now review a couple of stocks that performed well in the quarter. The top positive contributor this quarter was Aaron’s Inc. (NYSE:AAN). Aaron’s has been in the portfolio for several years, and it’s a holding we have described in the past. In short, Aaron’s is categorized as a “Rent-to-Own” (RTO) business. There are two somewhat related divisions owned by AAN. The first division includes AAN’s physical stores, which offer consumer electronic products, furniture, appliances, and other household products to individuals on lease terms with the option to buy the product through over 1,800 company-operated and franchise brick & mortar retail locations.The second business, Progressive Finance Holdings, is a virtual RTO operation. Progressive is a virtual operation because all of its business is handled through third-party retailer relationships. Essentially, Progressive buys the product from the retailer and immediately leases it to a customer after Progressive has approved the customer’s More...

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