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Twitter, Alphabet, Yahoo Among First Pacific's Recent Investments

- By Tiziano Frateschi

Robert L. Rodriguez, CFA, is the CEO of First Pacific Advisors (Trades, Portfolio). He manages a portfolio composed of 107 stocks with a total value of $12.515 billion. In the third and fourth quarters of 2016 the guru bought shares in the following stocks:


CVS Health Corp. (CVS)

During the third quarter of 2016, the guru increased the position by 15.19% and in the fourth quarter increased it by 23.01%. The guru holds 0.02% of the stock's outstanding shares.

CVS Health is an integrated pharmacy health care provider. The company has three segments: Pharmacy Services, Retail Pharmacy and Corporate. During the fourth quarter net revenues grew 11.7% from the same quarter of a year before and adjusted earnings per share increased 11.8%. The company reported an increase of $208 million or 13.8% for net income.

Barrow, Hanley, Mewhinney & Strauss is the leading shareholder among the gurus with 1.78% of outstanding shares followed by Pioneer Investments (Trades, Portfolio) with 0.75%, PRIMECAP Management (Trades, Portfolio) with 0.33%, NWQ Managers (Trades, Portfolio) with 0.13%, Jeremy Grantham (Trades, Portfolio) with 0.11%, Mario Gabelli (Trades, Portfolio) with 0.1% and Joel Greenblatt (Trades, Portfolio) with 0.1%.

Houghton Mifflin Harcourt Co. (HMHC)

During third quarter of 2016, the investor increased the stake by 12.00%. In the fourth quarter, the guru again added to the position by 9.79%. The guru holds 2.41% of the stock's outstanding shares.

Houghton Mifflin Harcourt provides content, services and technology to both educational institutions and consumers, reaching over 50 million students in more than 150 countries. It also publishes trade and reference materials. During the fourth quarter adjusted EBITDA was a loss of $19 million, a decrease of $35 million from $16 million in the same quarter of a year before and selling and administrative costs decreased $15 million from $176 million in the same quarter of 2015.

The largest shareholder among the gurus is Manning & Napier Advisors Inc. with 3.29% of outstanding shares followed by FPA Capital Fund (Trades, Portfolio) with 0.94%, Chuck Royce (Trades, Portfolio) with 0.92%, Jim Simons (Trades, Portfolio) with 0.49% and Paul Tudor Jones (Trades, Portfolio) with 0.05%.

Babcock & Wilcox Enterprises Inc. (BW)

During the third quarter of 2016, the investor increased the holding by 47.10% and again by 27.60% in the fourth quarter. The guru holds 8.12% of the stock's outstanding shares.

Babcock & Wilcox Enterprises is engaged in the manufacturing of fossil and renewable power generation equipment. The company offers a broad suite of boiler products and environmental systems and services for power and industrial uses. During the third quarter revenues decreased $9.0 million, or 2.1%, compared to the third quarter of a year before and GAAP earnings per share (EPS) was 18 cents compared to earnings per share of 11 cents for the same quarter of 2015.

Mariko Gordon (Trades, Portfolio) is another notable shareholder among the gurus with 6.37% of outstanding shares followed by FPA Capital Fund with 2.26%, Simons with 0.66%, Charles Brandes (Trades, Portfolio) with 0.47% and Jones with 0.02%.

Avnet Inc. (AVT)

During the third quarter, the investor increased the position by 8.20% and in the fourth quarter added another 23.07%. The guru holds 1.37% of the stock's outstanding shares.

Avnet together with its subsidiaries is a value-added distributor of electronic components, enterprise computer and storage products, IT solutions and services and embedded systems. Recently it announced that has completed the sale of its Technology Solutions business to Tech Data Corp. (TECD). During the second quarter it reported that gross profit and adjusted operating margins increased 158 and 18 basis points year over year.

The largest shareholder among the gurus is Richard Pzena (Trades, Portfolio) with 3.96% of outstanding shares followed by HOTCHKIS & WILEY with 1.09%, Richard Snow (Trades, Portfolio) with 0.94%, Tweedy Browne (Trades, Portfolio) with 0.67%, FPA Capital Fund with 0.53%, Grantham with 0.43% and Brandes with 0.36%.

Legg Mason Inc. (LM)

During the third quarter, the investor increased the holding by 0.23% and in the fourth quarter by 0.46%. The guru holds 4.14% of the stock's outstanding shares.

Legg Mason is an asset management company. The company through its subsidiaries provides related financial services to individuals, institutions, corporations and municipalities. Third-quarter net income was $51.4 million, or 50 cents per diluted share compared to net income of $66.4 million, or 63 cents per diluted share, in the second quarter, and a net loss of $138.6 million, or $1.31 per diluted share, in the third quarter of a year before. Operating revenues of $715.2 million were down 4% from $748.4 million in the prior quarter, and up 8% compared to $659.6 million in the same quarter of 2016.

Gabelli is another notable shareholder among the gurus with 3.55% of outstanding shares followed by Pzena with 0.66%, Robert Olstein (Trades, Portfolio) with 0.58%, Ken Fisher (Trades, Portfolio) with 0.25% and Third Avenue Management (Trades, Portfolio) with 0.11%.

Ally Financial Inc. (ALLY)

During the third quarter of 2016 the guru increased the holding by 0.23%. In the fourth quarter, he added to his position by 0.46%. The guru holds 2.33% of the stock's outstanding shares.

Ally Financial offers financial products and services to automotive dealers and their customers. The company is engaged in Dealer Financial Services and Mortgage, Corporate and Other business. During the fourth quarter net income was $248 million compared to $263 million in the prior year quarter and noninterest expense was $53 million higher than the same quarter of a year before.

The largest shareholder among the gurus is Bill Nygren (Trades, Portfolio) with 3.37% of outstanding shares followed by Howard Marks (Trades, Portfolio) with 2.2%, Richard Perry (Trades, Portfolio) with 0.89%, Grantham with 0.57%, Snow with 0.47%, Simons with 0.35% and HOTCHKIS & WILEY with 0.21%.

Alphabet Inc. Class A (GOOGL)

During the third quarter of 2016 the investor increased the position by 0.87% and in the fourth quarter increased it by 0.39%. The guru holds 0.04% of the stock's outstanding shares.

Alphabet through its subsidiary Google Inc. is engaged in improving the ways people connect with information and products including Search, Android, YouTube, Apps, Maps and Ads. It also produces internet-connected home devices and provides internet services. Fourth quarter revenue grew 22% year on year and 24% on a constant currency basis, and GAAP operating margin increased 25%. The company reported an increase of 33% for non-GAAP operating margin.

PRIMECAP Management is the largest shareholder among the gurus with 0.35% of outstanding shares followed by Spiros Segalas (Trades, Portfolio) with 0.31%, Andreas Halvorsen (Trades, Portfolio) with 0.26%, Frank Sands (Trades, Portfolio) with 0.24%, Fisher with 0.15%, Chris Davis (Trades, Portfolio) with 0.12%, Larry Robbins (Trades, Portfolio) with 0.11% and Pioneer Investments (Trades, Portfolio) with 0.08%.

Yahoo! Inc. (YHOO)

During the third quarter of 2016, the guru increased the position by 17.30% and in the fourth quarter increased it by 34.40%. The guru holds 0.76% of the stock's outstanding shares.

Yahoo is a technology company. It offers search, content and communication on mobile phone, tablet or desktop. During the fourth quarter it reported GAAP revenue of $1.469 billion compared to $1.273 billion in the same quarter of the prior year, and net earnings were $162 million compared to $4.435 billion in the fourth quarter of 2015.

Another notable shareholder among the gurus is PRIMECAP Management with 0.76% of outstanding shares followed by Steven Cohen (Trades, Portfolio) with 0.55%, David Einhorn (Trades, Portfolio) with 0.45%, Steven Romick (Trades, Portfolio) with 0.36%, Jana Partners (Trades, Portfolio) with 0.21%, Simons with 0.18% and David Tepper (Trades, Portfolio) with 0.11%.

Baidu Inc. ADR (BIDU)

During the third quarter of 2016 the investor increased his holding by 126.87% and in the fourth quarter increased it by 82.24%. The guru holds 0.5% of the stock's outstanding shares.

Baidu is a Chinese language Internet search provider. The company offers a Chinese-language search platform on its website Baidu.com.

Sands is the largest shareholder among the gurus with 1.89% of outstanding shares followed by Dodge & Cox with 1.64%, Sarah Ketterer (Trades, Portfolio) with 0.86%, Ruane Cunniff (Trades, Portfolio) with 0.76%, David Herro (Trades, Portfolio) with 0.75% and First Pacific Advisors with 0.5%.

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

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This article first appeared on GuruFocus.