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.
The FPA Capital Fund (Trades, Portfolio) uses fundamental analysis to invest in small to medium-sized companies. The funds performance for the year that ended on March 31 was a loss of 12.7% due to the “battered down” names in the contrarian managers’ portfolio.
As of June 30, the portfolio lists 25 holdings with a total fair value of $529 million. It had 6% quarter-over-quarter turnover and its largest sectors are energy, which represents 32.4% of holdings, and technology, which represents 31%.
Some stats about the fund:
Investment officers: Arik A. Ahitov and Dennis M. Bryan, CFA
FPA management: Since 1984
Assets under management: $759 million
Historical performance since 1984: 13.2% versus 11.5% for Russell 2500
Top holdings: Western Digital Corp. (WDC, Financial), InterDigital Inc. (IDCC, Financial), Patterson-UTI Energy Inc. (PTEN, Financial).
During the second quarter, the fund bought the most new shares of these current holdings: Houghton Mifflin Harcourt Co. (HMHC, Financial), Babcock & Wilcox Enterprises Inc. (BW, Financial), Western Digital Corp. (WDC, Financial), Aaron’s Inc. (AAN, Financial) and Dana Holding Corp. (DAN, Financial).
Houghton Mifflin Harcourt Co. (HMHC, Financial)
First Pacific increased its stake in Houghton Mifflin Harcourt Co. (HMHC, Financial) by 179%, from 414,640 shares in the first quarter to 1,156,997 shares in the second quarter. The stock’s average price in the second quarter was $18. After the buy, Houghton Mifflin has a 3.24% share of the portfolio.
Houghton Mifflin Harcourt Co has a market cap of $2.11 billion; its shares were traded around $17.11 with and P/S ratio of 1.55.
Babcock & Wilcox Enterprises Inc. (BW, Financial)
First Pacific increased its stake in Babcock & Wilcox Enterprises 20.51%, from 912,020 shares to 1,099,050 shares. The stock’s average price for the second quarter was $21. After the buy, the holding had a 3.05% share of the portfolio.
Babcock & Wilcox Enterprises Inc. has a market cap of $777.340 million; its shares were traded around $15.34 with a P/E ratio of 49.49 and P/S ratio of 0.46.
Western Digital Corp. (WDC, Financial)
First Pacific increased its Western Digital stake 19%, from 851,810 shares to 1,017,290 shares. The stock’s price averaged $44 during the second quarter. After the buy, it occupies 9.09% of the portfolio.
Western Digital Corp. has a market cap of $12.14 billion; its shares were traded around $52.12 with a P/E ratio of 14.72 and P/S ratio of 0.97. The trailing 12-month dividend yield of Western Digital Corp. stocks is 3.85%. The forward dividend yield of Western Digital Corp. stocks is 3.86%. Western Digital Corp. had an annual average earnings growth of 21.9% over the past 10 years. GuruFocus rated Western Digital Corp. the business predictability rank of 3-star.
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Dana Holding Corp. (DAN, Financial)
First Pacific increased its stake in Dana Holding Corp. 13.56%, from 1,861,304 shares to 2,113,654. The stock's average price for the second quarter was $12. After the buy, it occupied 4.22% of the portfolio.Ă‚
Dana Holding Corp. has a market cap of $1.68 billion; its shares were traded around $11.38 with a P/E ratio of 12.36 and P/S ratio of 0.30. The trailing 12-month dividend yield of Dana Holding Corp. stocks is 2.12%. The forward dividend yield of Dana Holding Corp. stocks is 2.12%. Dana Holding Corp. had an annual average earnings growth of 4% over the past five years.
Aaron’s Inc. (AAN, Financial)
First Pacific increased its stake in Aaron’s Inc. 12.5%, from 1,054,846 to 1,182,959 shares. The stock price averaged $25 during the second quarter. After the buy, the holding was 4.9% of the portfolio.
Aaron's Inc has a market cap of $1.72 billion; its shares were traded around $23.60 with a P/E ratio of 12.63 and P/S ratio of 0.54. The trailing 12-month dividend yield of Aaron's Inc stocks is 0.41%. The forward dividend yield of Aaron's Inc stocks is 0.42%. Aaron's Inc had an annual average earnings growth of 12.10% over the past 10 years. GuruFocus rated Aaron's Inc the business predictability rank of 4-star.
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