First Pacific Advisors (Trades, Portfolio) wasn’t as busy in the third quarter as it has been in recent quarters. The Los Angeles-based money management firm typically invests in more companies – and sells its holdings in more companies – than it did in the third quarter of 2014.
Founded in 1954 as Shareholders Management Company, the company changed its name to First Pacific Advisors (Trades, Portfolio) in 1976. Two years later, Director/President George Michaelis established the firm’s emphasis on value investing.
First Pacific’s activity in the third quarter may be a reflection of that emphasis.
First Pacific added two companies to its portfolio in the third quarter – Yahoo! Inc (YHOO, Financial) and Par Petroleum Corp (PARR, Financial).
The purchase of 3,000,000 shares of Yahoo!, a California-based internet services corporation, for an average price of $35.61 per share had a 1% impact on First Pacific’s portfolio. The value of the stock has gone up 35% since it was acquired by First Pacific.
First Pacific added to its existing stakes in 17 companies in the third quarter – Bank of America Corporation (BAC, Financial), TE Connectivity Ltd (TEL, Financial), Express Scripts (ESRX, Financial), American International Group Inc (AIG, Financial), Oracle Corporation (ORCL, Financial), Citigroup Inc (C, Financial), Ensco PLC (ESV, Financial), SM Energy Co (SM, Financial), Aaron's Inc (AAN, Financial), Cimarex Energy Co (XEC, Financial), Rowan Companies PLC (RDC), Atwood Oceanics Inc (ATW), Apollo Education Group Inc (APOL), Titan International Inc (TWI), Cubic Corp (CUB), Stewart Information Services Inc (STC) and McDonald's Corp (MCD).
First Pacific bought 6,439,400 shares of Bank of America, a banking and financial services company based in North Carolina, for an average price of $15.92 per share. The transaction had a 0.92% impact on First Pacific’s portfolio.
First Pacific also acquired 1,259,800 shares of TE Connectivity, a Pennsylvania-based electronics company, for an average price of $62.30 per share. The transaction had a 0.57% impact on the firm’s portfolio.
Divestitures and reductions
The firm sold its stakes in eight companies – PRA Group Inc (PRAA), Meadowbrook Insurance Group Inc (MIG), Total System Services Inc (TSS), Newfield Exploration Co (NFX), Patterson-UTI Energy Inc (PTEN), EchoStar Corp (SATS), Ross Stores Inc (ROST) and Paragon Offshore PLC (PGN).
First Pacific also sold portions of its holdings in 11 companies – Bank of New York Mellon Corp (BK), Anthem Inc (ANTM), Intel Corp (INTC), Johnson & Johnson (JNJ), Microsoft Corp (MSFT), Check Point Software Technologies Ltd (CHKP), ARRIS Group Inc (ARRS), Qualcomm Inc (QCOM), CareFusion Corp (CFN), Taiwan Semiconductor Manufacturing Co Ltd (TSM) and EZCorp Inc (EZPW).
First Pacific sold 2,317,900 shares of Bank of New York Mellon, an international banking and financial services company based in New York, for an average price of $38.90 per share. The transaction had a -0.68% impact on First Pacific’s portfolio.
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