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FPA Capital Update - High-Impact Reductions in Third Quarter

By: GuruFocus
Posted: 10/16/2013 7:05:00 PM
Referenced Stocks: ARW;AVT;OSK;WDC

The third quarter portfolio of FPA Capital lists 27 stocks with one of them new. The fund's total value is $799 million, with a quarter-over-quarter turnover is 2%. The portfolio is currently weighted with top three sectors: energy at 39.7%, consumer defensive at 8.8% and technology at 8.2%. FPA Capital has averaged a return of 18.5% over 12 months.

In the third quarter of 2013, FPA Capital reduced 11 positions and sold out one. Here's a review of their four highest-impact reductions, as of the quarter ending Sept. 30, 2013:

Arrow Electronics Inc. ( ARW ): Reduced

Impacts Portfolio: -3%

Up 40% over 12 months, Arrow Electronics Inc. has a market cap of $4.87 billion; its shares were traded at around $48.65 with a P/E of 11.80.

Guru Action: As of Sept. 30, 2013, FPA Capital reduced its position by 28.53%, unloading 605,100 shares at an average price of $45.83, gaining 6.4%.

Across a five-year history, the firm has averaged a 165% gain on 845,200 shares bought at an average price of $18.38 per share. Selling 1,214,700 shares at an average price of $37.39 per share, he has gained 30%.

Track historical pricing, revenue and net income:





Avnet Inc. ( AVT ): Reduced

Impacts Portfolio: -2.35%

Up 50% over 12 months, Avnet Inc., an electronics distribution company, has a market cap of $5.77 billion; its shares were traded at around $42.04 with a P/E of 13.20. The dividend is 0.40%.

Guru Action: As of Sept. 30, 2013, FPA Capital reduced its position by 24%, selling 559,600 shares at an average price of $38.62, gaining 8.9% on the holding.

Across a five-year history, the firm has averaged a 24% gain on 46,400 shares bought at an average price of $33.98 per share. Selling 1,426,600 shares at an average price of $32.75 per share, FPA Capital has gained 28%.

Track historical pricing, revenue and net income:





Oshkosh Corporation ( OSK ): Reduced

Impacts Portfolio: -1.72%

Up 70% over 12 months, Oshkosh Corporation, a truck manufacturer, has a market cap of $4.43 billion; its shares were traded at around $50.92 with a P/E of 12.80.

Guru Action: As of Sept. 30, 2013, FPA Capital reduced its position by 33.67%, unloading 364,200 shares at an average price of $44.50, gaining 14.4%.

Holding for 5 gaining quarters, FPA Capital made double-digit or triple-digit gains in every quarter. Gains peaked at 153.3% in the fourth quarter of 2011 when they bought 21,874 shares at an average price of $20.10 per share.

Track historical pricing, revenue and net income:



Western Digital Corporation ( WDC ): Reduced

Impacts Portfolio: -1.69%

Up 91% over 12 months, Western Digital Corporation, a data storage company, has a market cap of $16.35 billion; its shares were traded at around $69.32 with a P/E of 17.80. The dividend is 1.50%.

Guru Action: As of Sept. 30, 2013, FPA Capital reduced his position by 21.62%, unloading 218,300 shares at an average price of $65.31, for a gain of 6.1%.

Over a five-year history, FPA Capital has averaged a 168% gain on 2,031,000 shares bought at an average price of $25.82 per share. Selling 1,531,500 shares at an average price of $50.14 per share, FPA Capital has gained 38%.

Track historical pricing, revenue and net income:



FPA Capital's trading summary:



Check out all of FPA Capital's trades and history.

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