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.
During the second quarter of 2015 the fund increased its stake in 4 companies.
It increased its stake in Apollo Education Group Inc (APOL) by 79.87% with an impact of 2.47% on its portfolio. The fund started to buy APOL in 2013 Q1 and since then, it kept increasing its position and is now holding 3,004,200 shares at an average price of $19.43/share (an average loss of 15%).
APOL offers educational programs and services, online and on-campus, at the undergraduate, master's and doctoral levels. Its learning platforms include the following The University of Phoenix, Inc., Apollo Global, Inc. which also includes BPP Holdings Limited, Universidad Latinoamericana, Universidad de Artes, Ciencias y Comunicación, and Indian Education Services Private Ltd., Western International University, Inc., Institute for Professional Development, The College for Financial Planning Institutes Corporation, Carnegie Learning, Inc., and Apollo Lightspeed. Its institutions offer Accredited Degree Programs, Professional Examinations Training and Professional Development, and Employers.
It is now trading with a P/E (ttm) ratio of 19.83 and during the last 12 months the price of the stock has dropped by 53% (and by 69% over the last 5 years).
Despite this long lasting downward trend, the company has positive returns (ROE of 6.62%, ROA of 3.05%) even so they are having the all-time worst performance of the recent company’s history. These company’s ratios are even underperforming the Global Education & Training Services industry, since it is ranked lower than 55% of its competitors.
After this buy, FPA Capital Fund (Trades, Portfolio) became the third main holder of the company, with 2.79% of shares outstanding. The main one is Larry Robbins (Trades, Portfolio) (5.01%) and First Pacific Advisors (Trades, Portfolio) (3.23%)
It increased its stake in Dana Holding Corp (DAN) by 41.10% with an impact of 0.96% on its portfolio. The fund started to buy DAN in the first quarter of 2015 and now it holds 1,111,900 shares at an average price of $21.61/share (an average loss of 7%)
DAN provides high technology driveline axles, driveshafts and transmissions, sealing and thermal-management products. Its customer base includes vehicle manufacturers in the light vehicle, medium/heavy vehicle and off-highway markets. It manages its operations through four operating segments; Light Vehicle segment, Power Technologies segment, The Commercial Vehicle segment and Off-Highway segment. Light Vehicle and Power Technologies segments support light vehicle original equipment manufacturers "OEMs" with products for light trucks, SUVs, CUVs, vans and passenger cars.
It is now trading with a very low P/E (ttm) ratio of 9.96 and during the last 12 months the price of the stock has dropped by 12% (but has risen by 85% over the last 5 years).
The company has positive returns (ROE of 29.18%, ROA of 6.95%) and these are the best returns the company ever had in its history. These ratios are even outperforming the Global Auto Parts industry, since they are ranked higher than 70% of its competitors.
The Guru holding the largest stake of outstanding shares of the company is RS Investment Management (Trades, Portfolio) (3.36%), followed by Mario Gabelli (Trades, Portfolio) (3.17%) and Richard Pzena (Trades, Portfolio) (2.16%). FPA Capital Fund (Trades, Portfolio) holds 0.68% of outstanding shares of the company and this investment represent the 3.29% of total assets of the investor’s portfolio.
It increased its stake in Veeco Instruments Inc (VECO) by 47.88% with an impact of 0.48% on its portfolio. The fund started to buy VECO in the third quarter of 2011 and now it holds 357,427 shares at an average price of $31.11/share (an average gain of 2%)
VECO through its subsidiaries creates Process Equipment solutions that enable technologies for a cleaner and more productive world. The company designs, manufactures and markets equipment primarily sold to make light emitting diodes and hard-disk drives, as well as for emerging applications such as concentrator photovoltaics, power semiconductors, wireless components, micro-electromechanical systems, and other next-generation devices. Its two business segments are LED & Solar and Data Storage.
It is now trading with a forward P/E ratio of 18.42 and during the last 12 months the price of the stock has dropped by 18% (and by 26% over the last 5 years).
The company has negative returns (ROE of -13.60%, ROA of -11.10%). These ratios are underperforming the Global Semiconductor Equipment & Materials industry, since they are ranked lower than 80% of its competitors.
The Guru holding the largest stake of outstanding shares of the company is Ken Fisher (Trades, Portfolio) (5.17%), followed by Chuck Royce (Trades, Portfolio) (4.47%) and First Pacific Advisors (Trades, Portfolio) (1.11%). FPA Capital Fund (Trades, Portfolio) holds 0.89% of outstanding shares of the company and this investment represent the 1.48% of total assets of the investor’s portfolio.
It increased its stake in DeVry Education Group Inc. (DV) by 9.28% with an impact of 0.46% on its portfolio. The fund started to buy DV in the first quarter of 2012 and now it holds 1,253,918 shares at an average price of $29.40/share (an average gain of 8%)
DV is a provider of educational services & the parent organization of Advanced Academics, American University of the Caribbean School of Medicine, Becker Professional Education, Carrington College and Carrington College California, Chamberlain College of Nursing, DeVry Brasil, DeVry University, Ross University School of Medicine and Ross University School of Veterinary Medicine.
It is now trading with a P/E(ttm) ratio of 13.93 and during the last 12 months the price of the stock has dropped by 27% (40% over the last 5 years).
The company has positive returns (ROE of 9.59%, ROA of 7.16%). These ratios are outperforming the Global Education & Training Services industry, since they are ranked higher than 60% of its competitors.
The Guru holding the largest stake of outstanding shares of the company is Charles de Vaulx (Trades, Portfolio) (8.20%), followed by First Pacific Advisors (Trades, Portfolio) (3.39%) and FPA Capital Fund (Trades, Portfolio) (which holds 1.97% of outstanding shares and the investment is 5.4% of its total assets).
