U.S. Markets closed

First Pacific Sells Halliburton, AIG, Citigroup

- By Tiziano Frateschi

First Pacific Advisors (Trades, Portfolio) is a Los Angeles-based institutional money management firm that employs a disciplined approach to value investing, prudently seeking superior long-term returns while maintaining a focus on capital preservation. During the fourth quarter, the firm sold shares in the following stocks:


The firm reduced its stake in Arconic Inc. (ARNC) by 66.62%, with an impact of -3.46% on the portfolio.

The company manufactures value-added aluminum and specialty metals products for a wide variety of industrial end markets, including aerospace and defense, building and construction and automotive.

GuruFocus gives the stock a profitability and growth rating of 3 out of 10. The return on equity (ROE) of -86.77% and return on assets (ROA) of -21.71% are underperforming 98% of the companies in the Global Diversified Industrials industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio of 0.23 is below the industry median of 1.05.

The largest shareholder of the company among the gurus is Paul Singer (Trades, Portfolio) with 8.52% of outstanding shares, followed by First Pacific Advisors with 4.66%.

First Pacific sold out of Halliburton Co. (HAL). The trade had an impact of -1.4% on the portfolio.

The company provides services and products to the energy industry related to the exploration, development and production of oil and natural gas.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10. The ROE of -50.29% and ROA of -18.91% are underperforming 84% of the companies In the Global Oil and Gas Equipment and Services industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio of 0.32 is below the industry median of 0.51.

Spiros Segalas (Trades, Portfolio) is the largest shareholder of the company among the gurus with 0.79% of outstanding shares, followed by Tweedy Browne (Trades, Portfolio) with 0.41%, Bill Nygren (Trades, Portfolio) with 0.333%, Tweedy Browne (Trades, Portfolio) Global Value Fund with 0.21%, Sarah Ketterer (Trades, Portfolio) with 0.19% and Jim Simons (Trades, Portfolio) with 0.19%.

The firm reduced its holding of Bank of America Corp. (BAC) by 17.31%. The trade had an impact of -0.74% on the portfolio.

It is a bank holding and a financial holding company. Through its subsidiaries, it provides banking and non-banking financial services and products throughout the United States and select international markets.

GuruFocus gives the stock a profitability and growth rating of 3 out of 10. The ROE of 5.62% and ROA of 0.76% are underperforming 72% of the companies in the Global Banks - Global industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.66 is below the industry median of 1.97.

The largest shareholder of the company among the gurus is Dodge & Cox with 1.88% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.72%, Ken Fisher (Trades, Portfolio) with 0.36%, Hotchkis & Wiley with 0.35%, First Pacific Advisors with 0.27%, Richard Pzena (Trades, Portfolio) with 0.23% and Steve Mandel (Trades, Portfolio) with 0.22%.

The investment firm reduced its position in Citigroup Inc. (NYSE:C) by 19.05%, with an impact of -1.04% on the portfolio.

Citigroup is a financial services holding company. It provides financial products and services, including consumer banking, credit cards, corporate and investment banking, securities brokerage and wealth management.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10. The ROE of 5.99% and ROA of 0.83% are underperforming 68% of the companies in the Global Banks - Global industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.68 is below the industry median of 1.97.

Barrow, Hanley, Mewhinney & Strauss is the largest shareholder of the company among the gurus with 0.71% of outstanding shares, followed by Hotchkis & Wiley with 0.59%, First Pacific Advisors with 0.41%, Nygren with 0.35%, Diamond Hill Capital (Trades, Portfolio) with 0.33% and Pzena with 0.31%.

FPA reduced its stake in Cisco Systems Inc. (CSCO) by 8.83%. The transaction had an impact of -0.39% on the portfolio.

Cisco designs, manufactures and sells Internet Protocol (IP) based networking products and services related to the communications and information technology (IT) industry.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 15.65% and ROA of 8.12% are outperforming 83% of the companies in the Global Communication Equipment industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 2.06 is above the industry median of 2.62.

The largest shareholder of the company among the gurus is Dodge & Cox with 1.29% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.54%, Donald Yacktman (Trades, Portfolio) with 0.5%, Jeremy Grantham (Trades, Portfolio) with 0.35% and Fisher with 0.31%.

The firm pared its General Electric Co. (GE) position by 13.92%, impacting the portfolio by -0.33%.

General Electric is a diversified company with products and services that range from aircraft engines, power generation, oil and gas production equipment, household appliances, medical imaging, business and consumer financing and industrial products.

GuruFocus gives the stock a profitability and growth rating of 5 out of 10. While the ROE of 9.40% is outperforming the sector, the ROA of 2.08% is underperforming 59% of the companies in the Global Diversified Industrials industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.68 is below the industry median of 1.05.

The largest shareholder of the company among the gurus is Fisher with 0.36% of outstanding shares, followed by Nygren with 0.16%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.16%, Warren Buffett (Trades, Portfolio) with 0.12%, First Pacific Advisors with 0.09%, Steven Romick (Trades, Portfolio) with 0.07%, Mairs and Power (Trades, Portfolio) with 0.05% and Pioneer Investments (Trades, Portfolio) with 0.03%.

First Pacific cut its holding of American International Group Inc. (AIG) by 5.45%. The transaction had an impact of -0.31% on the portfolio.

The company, through its subsidiaries, provides insurance and related services in the U.S. and abroad.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10. The ROE of -0.98% and ROA of -0.17% are underperforming 87% of the companies in the Global Insurance - Diversified industry. Financial strength has a rating of 4 out of 10 with a cash-debt ratio of 0.06.

The largest shareholder of the company among the gurus is Carl Icahn (Trades, Portfolio) with 4.67% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 0.85%, Romick with 0.83%, Nygren with 0.71%, Pzena with 0.61% and John Paulson (Trades, Portfolio) with 0.49%.

FPA reduced its stake in Helmerich & Payne Inc. (HP) by 44.91%, impacting the portfolio by -0.18%.

The company is engaged in the contract drilling of oil and gas wells for others in the ownership, development and operation of commercial real estate. Its business comprises three reportable segments: U.S. Land, Offshore and International Land.

GuruFocus gives the stock a profitability and growth rating of 5 out of 10. The ROE of -2.35% and ROA of -1.56% are outperforming 63% of the companies in the Global Oil & Gas Drilling industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 1.77 is above the industry median of 0.36.

The largest shareholder of the company among the gurus is Chuck Royce (Trades, Portfolio) with 0.52% of outstanding shares, followed by Simons with 0.38%, Fisher with 0.36%, Prem Watsa (Trades, Portfolio) with 0.32%, FPA Capital Fund (Trades, Portfolio) with 0.19% and Michael Price (Trades, Portfolio) with 0.08%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

Start a free 7-day trial of Premium Membership to GuruFocus.

This article first appeared on GuruFocus.