“FPA is a leading practitioner of value investing. Providing a prudent place to invest, we focus on generating superior returns over the long-term coupled with capital preservation. We consider ourselves investors, not traders, and foster a culture that promotes high ethical standards…Our goal is to provide a consistent, risk-averse and disciplined approach to long-term investing in individual securities with the objective of achieving superior total returns for client portfolios.” – Website of First Pacific Advisors.

First Pacific Advisors Buys Alcoa Inc, Cuts Lowe's, Increases Qualcomm

The hedge fund’s 13F filing for the quarter ending September 30, 2013, reveals that it entered 9 new investments, augmented positions in 32 stocks and reduced its holdings in 65 stocks. It completely sold out its position in 6 investments, whereas 21 holdings remained unchanged.

FPA’s new investments

FPA’s five largest new investments by market value were Alcoa Inc (NYSE:AA) ($111.38M), Sears Hometown and Outlet Stores Inc (NASDAQ:SHOS) ($8.8M), Aaron’s, Inc. (NYSE:AAN) ($3.3M), Stewart Information Services Corp (NYSE:STC) ($3.29M) and Myriad Genetics, Inc. (NASDAQ:MYGN) ($3.21M).

FPA’s investments trimmed

The fund cut back on its holdings significantly in these stocks: ITT Corp (NYSE:ITT) (-36%,), Unilever N.V. (ADR) (NYSE:UN) (-54%), Cabot Oil & Gas Corporation (NYSE:COG) (-60%), Lowe’s Companies, Inc.(NYSE:LOW) (-70%) and Omnicare, Inc. (NYSE:OCR) (-82%).

FPA investments increased

FPA boosted its holdings significantly in QUALCOMM, Inc. (NASDAQ:QCOM) (786%), A M Castle and Co (NYSE:CAS) (102%), Nordson Corporation (NASDAQ:NDSN) (61%), Ares Commercial Real Estate Corp (NYSE:ACRE) (42%) and Occidental Petroleum Corporation (NYSE:OXY) (36%).

FPA holdings completely divested

FPA sold off all its shares in Alliant Techsystems Inc. (NYSE:ATK), Health Net, Inc. (NYSE:HNT), Maidenform Brands, Inc. (NYSE:MFB), Rush Enterprises, Inc. (NASDAQ:RUSHB), Volt Information Sciences, Inc. (OTCMKTS:VISI), and Xerox Corporation (NYSE:XRX).

FPA’s major holdings as at September 30

The fund’s biggest five holdings as a percentage of the portfolio were Microsoft Corporation (NASDAQ:MSFT) (5.72%), Aon PLC (5.26%), CVS Caremark Corporation (NYSE:CVS) (4.32%), Occidental Petroleum Corporation (NYSE:OXY) (3.96%) and Oracle Corporation (NYSE:ORCL) (3.93%).

The total market value of the fund as at the end of the quarter was $9.69B.