The FPA Capital Fund (Trades, Portfolio) typically has roughly a 50-50 mix of buying and selling activity in a quarter, but most of its activity in the second quarter involved selling only. FPA didn't sell any stakes in full, but it did sell portions of 13 existing stakes and added to just four.
FPA tends to invest in smaller companies, a strategy that produced a return of nearly 23% in 2013.
FPA Capital Fund (Trades, Portfolio) reduced its positions in 13 companies in the second quarter. The greatest impact was felt by the sale of 121,700 shares of Cimarex Energy Co (XEC), a Denver-based oil and gas exploration and production company, for an average price of $119.42 per share. The transaction had a -1.76% impact on the Fund's portfolio.
Cimarex has a market cap of $9.26 billion and an enterprise value of $10.64 billion. It has a Price/Book of 2.3 and a Price/Sales of 4.1. Diamond Hill Capital (Trades, Portfolio), Columbia Wanger (Trades, Portfolio), Charles de Vaulx (Trades, Portfolio), First Pacific Advisors (Trades, Portfolio), Chuck Royce (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), George Soros (Trades, Portfolio), Jim Simons (Trades, Portfolio), T Boone Pickens (Trades, Portfolio) and Ken Fisher (Trades, Portfolio) have shares of Cimarex in their portfolios.
FPA Capital Fund (Trades, Portfolio) also sold 774,700 shares of Rowan Companies PLC (RDC), a Houston-based provider of contract oil well drilling services and rigs, for an average price of $21.11 per share. The sale had a -1.72% impact on the Fund's portfolio.
Rowan has a market cap of $2.41 billion and an enterprise value of $5.17 billion. It has a Price/Book of 0.5 and a Price/Sales of 1.4. First Pacific Advisors (Trades, Portfolio), HOTCHKIS & WILEY, Richard Pzena (Trades, Portfolio), RS Investment Management (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), George Soros (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) have shares of Rowan in their portfolios.
FPA sold 235,40 shares of SM Energy Co (SM), an oil and gas exploration and production company based in Denver, for an average price of $52.75 per share. The deal had a -1.53% impact on the Fund's portfolio.
SM Energy has a market cap of $2.87 billion and an enterprise value of $5.48 billion. It has a P/E of 5.3, a Price/Book of 1.3 and a Price/Sales of 1.3. Columbia Wanger (Trades, Portfolio), First Pacific Advisors (Trades, Portfolio), Sarah Ketterer (Trades, Portfolio), Paul Singer (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Arnold Schneider (Trades, Portfolio), Ron Baron (Trades, Portfolio), Kyle Bass (Trades, Portfolio), Ray Dalio (Trades, Portfolio) and David Dreman (Trades, Portfolio) have shares of SM Energy in their portfolios.
FPA closed the deal on 665,500 shares of Rosetta Resources Inc (ROSE), an independent oil and gas company based in Houston, for an average price of $22.74 per share. The sale had a -1.42% impact on the Fund's portfolio.
Rosetta Resources has a market cap of $1.59 billion and an enterprise value of $3.42 billion. It has a Price/Book of 1.2 and a Price/Sales of 1.1. First Pacific Advisors (Trades, Portfolio), RS Investment Management (Trades, Portfolio), Columbia Wanger (Trades, Portfolio), Jim Simons (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Third Avenue Management (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and David Dreman (Trades, Portfolio) have shares of Rosetta Resources in their portfolios.
Houston-based Noble Energy Inc. (NBL) informed the state of Texas Monday that it will close Rosetta Resources' downtown headquarters after its acquisition, which was announced in May, is completed later this summer.
The Fund sold 387,200 shares of ARRIS Group Inc (ARRS), a Georgia-based telecommunications equipment manufacturing company that provides cable operators with high-speed data, video and telephony systems for homes and businesses, for an average price of $32.33 per share. The deal had a -1.4% impact on the Fund's portfolio.
ARRIS Group has a market cap of $4.59 billion and an enterprise value of $5.47 billion. It has a P/E of 15.3, a Price/Book of 2.7 and a Price/Sales of 0.9. First Pacific Advisors (Trades, Portfolio), HOTCHKIS & WILEY, Steven Romick (Trades, Portfolio), Jim Simons (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Manning & Napier Advisors, Inc, Ronald Muhlenkamp (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Chuck Royce (Trades, Portfolio), David Dreman (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) have shares of ARRIS Group in their portfolios.
The Fund also sold 222,800 shares of Avnet Inc (AVT), an electronics company based in Phoenix, for an average price of $44.01 per share. The sale had a -1.24% impact on the Fund's portfolio.
Avnet has a market cap of $5.49 billion and an enterprise value of $6.76 billion. It has a P/E of 9.4, a Price/Book of 1.2 and a Price/Sales of 0.2. Richard Pzena (Trades, Portfolio), HOTCHKIS & WILEY, First Pacific Advisors (Trades, Portfolio), Richard Snow (Trades, Portfolio), Columbia Wanger (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Charles Brandes (Trades, Portfolio), Scott Black (Trades, Portfolio), Chuck Royce (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), David Dreman (Trades, Portfolio) and Arnold Schneider (Trades, Portfolio) have shares of Avnet in their portfolios.
The Fund's other reductions were in InterDigital Inc (IDCC), Arrow Electronics Inc (ARW), Helmerich & Payne Inc (HP), Oshkosh Corp (OSK), Foot Locker Inc (FL), Western Digital Corp (WDC) and Federated Investors, Inc. (FII).
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