I hope Robert Rodriguez of First Pacific Advisors (FPA) is not letting his hard earned sabbatical year spoiled by millions of gallons of oil spilled into the Gulf of Mexico by BP. Not that the veteran investment manager likes that part of the world particularly (I simply do not know, he might, who wouldn’t?), it is that the mutual funds (FPA Capital, FPA Crescent, etc.) he left behind happen to be filled with Oil and Gas companies. Counting only the domestic stock portfolio portion of the firm’s funds, the firm allocates a total 31% of the assets in Oil & Gas names, according to GuruFocus data:
The Flagship fund -- FPA Capital Fund, a fund managed by Robert Rodriguez himself before he took the back seat, is even more concentrated, with54.46% of its asset in Oil & Gas, according to Morningstar statistics. Since April, 2010 when the oil spill occurred, the fund has lost more than 13%.
Short term loss is unfortunate. But the fund boasts an outstanding long term performance: through 8/11/2010, in the past 1, 3, 5, 10, and 15 years, the fund returned 12.95, -3.22, 0.89, 8.66, and 10.45%, in the same respective periods, S&P 500 returned 11.83, -7.09, -0.45, -1.15, and 6.49%. FPA Capital wins each and every period. YTD the fund is down 3.14%, underperforming S&P 500 a little bit. Rodriguez can continue to enjoy his sabbatical year, especially since the BP has essentially plugged the leaking well in the Gulf.
Another reason Rodriguez can sleep well is that the amount of cash that fund holds. Morningstar shows the fund has 33.75% cash as of June 30, 2010. Another fund, FPA Crescent fund managed by Steven Romick has 38.42% in cash.
Clearly, FPA Capital in positioned for better opportunities in another day.
Here is a top holdings of FPA Capital as a firm, including all the mutual funds:
No. 1: ENSCO International Inc. (ESV, Financial), Weightings: 7.85% - 7,980,100 Shares
Ensco International plc, formerly ENSCO International Incorporated, is a provider of offshore contract drilling services to the international oil and gas industry. Ensco International Inc. has a market cap of $6.2 billion; its shares were traded at around $43.49 with a P/E ratio of 10.3 and P/S ratio of 3.2. The dividend yield of Ensco International Inc. stocks is 0.9%. Ensco International Inc. had an annual average earning growth of 23.9% over the past 10 years. GuruFocus rated Ensco International Inc. the business predictability rank of 3.5-star.
No. 2: Rowan Companies Inc. (RDC, Financial), Weightings: 4.04% - 7,352,500 Shares
Rowan Companies, Inc. is a major provider of international and domestic offshore contract drilling services. Rowan Companies Inc. has a market cap of $2.92 billion; its shares were traded at around $25.53 with a P/E ratio of 9.5 and P/S ratio of 1.7. Rowan Companies Inc. had an annual average earning growth of 24.8% over the past 10 years.
No. 3: Avnet Inc. (AVT, Financial), Weightings: 3.44% - 5,700,800 Shares
Avnet Inc. is one of the world's largest industrial distributors of electronic components and computer products. Avnet Inc. has a market cap of $3.71 billion; its shares were traded at around $24.41 with a P/E ratio of 11.2 and P/S ratio of 0.3.
No. 4: Covidien PLC (COV, Financial), Weightings: 3.23% - 3,209,200 Shares
Covidien PLC, formerly Covidien Ltd, is engaged in the development, manufacture and sale of healthcare products for use in clinical and home settings. Covidien Ltd. has a market cap of $18.95 billion; its shares were traded at around $37.81 with a P/E ratio of 11.4 and P/S ratio of 1.8. The dividend yield of Covidien Ltd. stocks is 1.9%.
No. 5: Signet Group plc (SIG, Financial), Weightings: 2.95% - 4,280,050 Shares
Signet Group PLC operates specialist retail jewellery stores. Signet Group Plc has a market cap of $2.4 billion; its shares were traded at around $28.06 with a P/E ratio of 17.1 and P/S ratio of 0.8.
Conclusion
FPA owns allocate good portion of its asset in oil & gas service companies. Despite a generally bearish view towards the stock market, the firm bought some more of the oil and gas service companies.
Find the complete stock portfolio of FPA: http://www.gurufocus.com/holdings.php?GuruName=First+Pacific+Advisors.
GuruFocus provides real time information and insights of Investment Gurus such as Warren Buffett and First Pacific Advisors for Premium Members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
| Industry | 2010-03-31 | 2010-06-30 |
|---|---|---|
| Technology | 3.6% | 4.1% |
| Financials | 4.5% | 4% |
| Telecommunications | 1.9% | 1.9% |
| Consumer Services | 15.4% | 14.3% |
| Health Care | 13.1% | 15.1% |
| Consumer Goods | 3.1% | 4.9% |
| Industrials | 19% | 17.4% |
| Basic Materials | 1.1% | 0.8% |
| Oil & Gas | 31.6% | 31% |
The Flagship fund -- FPA Capital Fund, a fund managed by Robert Rodriguez himself before he took the back seat, is even more concentrated, with54.46% of its asset in Oil & Gas, according to Morningstar statistics. Since April, 2010 when the oil spill occurred, the fund has lost more than 13%.
Short term loss is unfortunate. But the fund boasts an outstanding long term performance: through 8/11/2010, in the past 1, 3, 5, 10, and 15 years, the fund returned 12.95, -3.22, 0.89, 8.66, and 10.45%, in the same respective periods, S&P 500 returned 11.83, -7.09, -0.45, -1.15, and 6.49%. FPA Capital wins each and every period. YTD the fund is down 3.14%, underperforming S&P 500 a little bit. Rodriguez can continue to enjoy his sabbatical year, especially since the BP has essentially plugged the leaking well in the Gulf.
Another reason Rodriguez can sleep well is that the amount of cash that fund holds. Morningstar shows the fund has 33.75% cash as of June 30, 2010. Another fund, FPA Crescent fund managed by Steven Romick has 38.42% in cash.
Clearly, FPA Capital in positioned for better opportunities in another day.
Here is a top holdings of FPA Capital as a firm, including all the mutual funds:
No. 1: ENSCO International Inc. (ESV, Financial), Weightings: 7.85% - 7,980,100 Shares
Ensco International plc, formerly ENSCO International Incorporated, is a provider of offshore contract drilling services to the international oil and gas industry. Ensco International Inc. has a market cap of $6.2 billion; its shares were traded at around $43.49 with a P/E ratio of 10.3 and P/S ratio of 3.2. The dividend yield of Ensco International Inc. stocks is 0.9%. Ensco International Inc. had an annual average earning growth of 23.9% over the past 10 years. GuruFocus rated Ensco International Inc. the business predictability rank of 3.5-star.
No. 2: Rowan Companies Inc. (RDC, Financial), Weightings: 4.04% - 7,352,500 Shares
Rowan Companies, Inc. is a major provider of international and domestic offshore contract drilling services. Rowan Companies Inc. has a market cap of $2.92 billion; its shares were traded at around $25.53 with a P/E ratio of 9.5 and P/S ratio of 1.7. Rowan Companies Inc. had an annual average earning growth of 24.8% over the past 10 years.
No. 3: Avnet Inc. (AVT, Financial), Weightings: 3.44% - 5,700,800 Shares
Avnet Inc. is one of the world's largest industrial distributors of electronic components and computer products. Avnet Inc. has a market cap of $3.71 billion; its shares were traded at around $24.41 with a P/E ratio of 11.2 and P/S ratio of 0.3.
No. 4: Covidien PLC (COV, Financial), Weightings: 3.23% - 3,209,200 Shares
Covidien PLC, formerly Covidien Ltd, is engaged in the development, manufacture and sale of healthcare products for use in clinical and home settings. Covidien Ltd. has a market cap of $18.95 billion; its shares were traded at around $37.81 with a P/E ratio of 11.4 and P/S ratio of 1.8. The dividend yield of Covidien Ltd. stocks is 1.9%.
No. 5: Signet Group plc (SIG, Financial), Weightings: 2.95% - 4,280,050 Shares
Signet Group PLC operates specialist retail jewellery stores. Signet Group Plc has a market cap of $2.4 billion; its shares were traded at around $28.06 with a P/E ratio of 17.1 and P/S ratio of 0.8.
Conclusion
FPA owns allocate good portion of its asset in oil & gas service companies. Despite a generally bearish view towards the stock market, the firm bought some more of the oil and gas service companies.
Find the complete stock portfolio of FPA: http://www.gurufocus.com/holdings.php?GuruName=First+Pacific+Advisors.
GuruFocus provides real time information and insights of Investment Gurus such as Warren Buffett and First Pacific Advisors for Premium Members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
