First Pacific Advisors (Trades, Portfolio) disclosed this week in a regulatory filing that its top five trades during the first quarter included boosts to its positions in Amazon.com Inc. (AMZN, Financial) and Netflix Inc. (NFLX, Financial) and reductions to its holdings of Activision Blizzard Inc. (ATVI, Financial), Broadcom Inc. (AVGO, Financial) and Wells Fargo & Co. (WFC, Financial).
The Los Angeles-based firm follows a value-oriented, research-intensive process in which the fund managers emphasize intellectual independence. The firm runs several concentrated funds that focus on small to mid-cap stocks.
As of March, the firm’s $7.763 billion 13F equity portfolio contains 195 stocks, with 18 new positions and a quarterly turnover of 7.5%. Investors should be aware that the 13F filings do not give a complete picture of a firm’s holdings as they only include its positions in U.S. stocks and American depository receipts, but the reports can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.
The top three sectors in terms of weight are communication services, financial services and technology, representing 30.39%, 26.93% and 20.4% of the equity portfolio.
Amazon.com
The firm purchased 59,842 shares of Amazon.com (AMZN, Financial), boosting the position by 246.36% and its equity portfolio by 2.51%.
Although shares of Amazon.com averaged $3,092.09 during the first quarter, shares traded around $2,107.44 on Thursday. The stock is significantly undervalued based on Thursday’s price-to-GF Value ratio of 0.57.
The Seattle-based e-commerce giant has a GF Score of 92 out of 100 based on a growth rank of 10 out of 10, a profitability rank of 9 out of 10, a momentum rank of 7 out of 10, a financial strength rank of 6 out of 10 and a GF Value rank of 4 out of 10.
Other gurus with holdings in Amazon.com include Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial), Ken Fisher (Trades, Portfolio)’s Fisher Investments and Baillie Gifford (Trades, Portfolio).
Netflix
The firm added 374,897 shares of Netflix (NFLX, Financial), expanding the position by 576.38% and its equity portfolio by 1.81%.
Although shares of Netflix averaged $417.64 during the first quarter, they traded around $170.80 on Thursday. The stock is significantly undervalued based on Thursday’s price-to-GF Value ratio of 0.27.
The Los Gatos, California-based streaming giant has a GF Score of 82 out of 100, driven by a rank of 10 out of 10 for profitability and growth despite financial strength ranking just 6 out of 10 and GF Value and momentum ranking just 2 out of 10.
Activision Blizzard
The firm sold 2,074,714 shares of Activision Blizzard (ATVI, Financial), slicing 58.67% of the position and 1.71% of its equity portfolio.
Shares of Activision Blizzard averaged $77.76 during the first quarter; the stock is fairly valued based on Thursday’s price-to-GF Value ratio of approximately 1.
The Santa Monica, California-based video game company has a GF Score of 92 out of 100, driven by a momentum rank of 10 out of 10, a profitability rank of 9 out of 10 and a rank of 8 out of 10 for financial strength and growth despite GF Value ranking just 6 out of 10.
Broadcom
The firm sold 141,326 shares of Broadcom (AVGO, Financial), trimming 17.91% of the position and 1.17% of its equity portfolio.
Shares of Broadcom averaged $593.78 during the first quarter; the stock is modestly overvalued based on Thursday’s price-to-GF Value ratio of 1.26.
The San Jose, California-based semiconductor company has a GF Score of 90 out of 100, driven by a rank of 10 out of 10 for profitability and growth despite momentum ranking 6 out of 10, financial strength ranking 5 out of 10 and GF Value ranking just 3 out of 10.
Wells Fargo
The firm sold 1,236,554 shares of Wells Fargo (WFC, Financial), curbing 16.97% of the position and 0.74% of its equity portfolio.
Shares of Wells Fargo averaged $53.63 during the first quarter; the stock is modestly undervalued based on Thursday’s price-to-GF Value ratio of 0.86.
The San Francisco-based bank has a GF Score of 81 out of 100 based on a momentum rank of 10 out of 10 and a rank of 7 out of 10 for growth and GF Value despite profitability ranking just 6 out of 10 and financial strength ranking just 4 out of 10.
