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Tiziano Frateschi
Tiziano Frateschi
Articles (1857)  | Author's Website |

FPA Capital Fund Trims SM Energy Position, Exits Tenneco

Fund's largest sales of the 3rd quarter

The FPA Capital Fund (Trades, Portfolio) sold shares of the following stocks during the third quarter.

The fund reduced its SM Energy Co. (NYSE:SM) holding by 44.83%. The trade had an impact of -3.82% on the portfolio.

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The company, which operates in the acquisition, development and production of crude oil and natural gas liquids, has a market cap of $3.4 billion and an enterprise value of $5.7 billion.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. While the return on equity of 8.59% is underperforming the sector, the return on assets of 3.43% is outperforming 52% of companies in the Global Oil and Gas E&P industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.21 is below the industry median of 0.51.

The company's largest shareholder among the gurus is Sarah Ketterer (Trades, Portfolio) with 5.58% of outstanding shares, followed by First Pacific Advisors (Trades, Portfolio) with 1.81% and Arnold Schneider (Trades, Portfolio) with 0.47%.

FPA exited its position in Tenneco Inc. (NYSE:TEN). The trade had an impact of -3.46% on the portfolio.

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The company, which manufactures auto parts, has a market cap of $3 billion and an enterprise value of $4.35 billion.

GuruFocus gives the company a profitability and growth rating of 6 out of 10. The return on equity of 37.65% and return on assets of 5.22% are outperforming 59% of companies in the Global Auto Parts industry. Its financial strength is rated of 5 out of 10. The cash-debt ratio of 0.16 is below the industry median of 0.53.

The largest guru shareholder of the company is Mario Gabelli (Trades, Portfolio) with 0.91% of outstanding shares, followed by Diamond Hill Capital (Trades, Portfolio) with 0.65% and First Pacific Advisors with 0.62%.

The fund curbed its Spirit Airlines Inc. (NYSE:SAVE) position by 68.58%. The trade had an impact of -3.05% on the portfolio.

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The airline has a market cap of $3.3 billion.

GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 16.66% and return on assets of 6.58% are outperforming 70% of companies in the Global Airlines industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.49 is below the industry median of 0.54.

First Pacific Advisors is the largest guru shareholder of the company with 1.13% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 0.95%, PRIMECAP Management (Trades, Portfolio) with 0.92% and Robert Olstein (Trades, Portfolio) with 0.95%.

The fund sold out of Veeco Instruments Inc. (NASDAQ:VECO). The trade impacted the portfolio by -2.81%.

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The semiconductor manufacturer has a market cap of $445.95 million and an enterprise value of $465.9 million.

GuruFocus gives the company a profitability and growth rating of 3 out of 10. The return on equity of -35.32% and return on assets of -21.24% are outperforming 94% of companies in the Global Semiconductor Equipment and Materials industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.93 is below the industry median of 1.69.

The largest guru shareholder of the company is Ken Fisher (Trades, Portfolio) with 2.91% of outstanding shares, followed by the First Pacific Advisors with 2.35%, Royce with 1.26% and Schneider with 1.17%.

The Rowan Companies PLC (NYSE:RDC) holding was reduced by 42.26%, impacting the portfolio by -2.65%.

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The offshore drilling contractor has a market cap of $2.39 billion and an enterprise value of $3.77 billion.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. The return on equity of -1.85% and return on assets of -1.17% are outperforming 69% of companies in the Global Oil and Gas Drilling industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.45 is above the industry median of 0.40.

Steven Cohen (Trades, Portfolio) is another notable guru shareholder with 0.52% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.47%, Lee Ainslie (Trades, Portfolio) with 0.35% and Joel Greenblatt (Trades, Portfolio) with 0.2%.

The fund trimmed 50.57% off its Aaron's Inc. (NYSE:AAN) position. The trade impacted the portfolio by -2.33%.

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The furniture and consumer electronics retailer has a market cap of $3.44 billion and an enterprise value of $3.62 billion.

GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 17.59% and return on assets of 11.15% are outperforming 83% of companies in the Global Rental and Leasing Services industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 0.35 is below the industry median of 0.66.

The largest guru shareholder of the company is Diamond Hill Capital with 2.15% of outstanding shares, followed by the Gabelli with 0.81%.

The Avnet Inc. (NASDAQ:AVT) position was reduced by 24.02%, impacting the portfolio by -1.74%.

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The company, which distributes electronic components, software and data center infrastructure hardware, has a market cap of $4.66 billion and an enterprise value of $5.59 billion.

GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of -3.09% and return on assets of -1.61% are outperforming 78% of companies in the Global Electronics Distribution industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.38 is below the industry median of 1.32.

Richard Pzena (Trades, Portfolio) is the company's largest shareholder among the gurus with 7.92% of outstanding shares, followed by Hotchkis & Wiley with 1.43%, Diamond Hill Capital with 0.96% and Tweedy Browne (Trades, Portfolio) with 0.52%.

Disclosure: I do not own any stocks mentioned in this article.

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About the author:

Tiziano Frateschi
You can read about me on www.theextraincome.info, which gives suggestions on position trading.

Visit Tiziano Frateschi's Website


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