Microsoft Corporation (MSFT) Is Top Holding For Steven Romick’s FPA

The latest 13F filing by Steven Romick’s First Pacific Advisors (FPA) shows an aggregate portfolio worth $10.62B as of December 31, 2013. This is up 9.6% from the end-September value of $9.69B.

Located in Los Angeles, California, FPA describes itself 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,” says the FPA website.

Microsoft tops FPA’s portfolio holdings

As of the end December, FPA’s biggest holding as a percentage of portfolio value was Microsoft Corporation (NASDAQ:MSFT) at 5.94%. The second largest holding was Oracle Corporation (NYSE:ORCL) at 5.27%, one to which FPA added to during the quarter. CVS Caremark Corporation (NYSE:CVS) was next, forming 5.02% of the portfolio. Aon PLC was the fourth largest position with 5.01% while Thermo Fisher Scientific Inc.(NYSE:TMO) came in fifth at 4.1%.

New investments

FPA made a new fresh investment in Joy Global Inc. (NYSE:JOY) of 1,393,200 shares forming 0.77% of its portfolio. The company is a worldwide leader in mining equipment and services for surface and underground mining.

FPA also entered a position of 1,336,500 ADRs in Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) (TPE:2330), a manufacturer of integrated circuit related products. This investment aggregated 0.22%.

The fund took on a new exposure of 848,100 shares in Titan International Inc (NYSE:TWI), which manufactures wheels and tires (0.14% of portfolio).

Positions increased

FPA added to its existing positions in Alcoa Inc (NYSE:AA), Atwood Oceanics, Inc. (NYSE:ATW) and Oracle Corporation (NYSE:ORCL), the last-named also being the second largest holding in its portfolio.

Positions reduced

The fund cut back on its exposure to Hewlett-Packard Company (NYSE:HPQ), Omnicare, Inc. (NYSE:OCR) and Rowan Companies PLC (NYSE:RDC).

Positions sold out

During the quarter FPA divested completely from ITT Corp (NYSE:ITT), Lowe’s Companies, Inc. (NYSE:LOW) and Monster Worldwide, Inc. (NYSE:MWW).

About the Author

Saul Griffith
Saul Griffith is an investor in stocks, commodities and forex, writing under a pen name. Saul has top accounting qualifications and extensive experience in industry and the financial markets. He also has an abiding interest in breaking news that could be a harbinger of new trends and give insight into an instrument’s potential for providing value, growth or yield.