FPA Capital Fund, Inc. (Closed)

Objective:

FPA Capital Fund, Inc. (FPPTX) seeks long-term growth through investing primarily in carefully selected common stocks and select fixed income securities.

  • Fundamental bottom-up, deep value stock picking with economic and industry point of view
  • Capitalize on best ideas with concentrated portfolios
  • Focus on long term, turnover averaging less than 20% over 20 years

Philosophy:

The Fund's managers believe that the best way to produce substantial returns is to purchase securities on the basis of fundamental value, rather than short-term stock market expectations, and hold them until the full investment potential is achieved. This deep value price-driven equity style attempts to exploit market inefficiencies among stocks of small to mid-capitalization companies. Intense research is required to build the high level of knowledge and confidence necessary to realistically evaluate unpopular situations. Great attention is paid to the minimization of potential risk. The disciplined selection process is designed to minimize business and valuation risk by selecting companies with:

  1. market leadership and long-term histories of profitability;
  2. financially strong balance sheets;
  3. first-rate management teams that have an understandable and successful business strategy;
  4. a deep value price based on normal free cash flows, earnings and balance sheet values.

To purchase superior or potentially superior companies at low valuations requires either that the company or industry is out of favor or the value has not been recognized. Because our holdings generally originate from areas that are out of favor, our holding period of five years approximate the time it takes for them to realize their full earning and valuation potential.


As of April 30, 2012

Comparative Performance

Fund/Index Month    YTD  1 Year   3 Years** 5 Years** 10 Years** 15 Years** 20 Years** Since Inception**
FPA Capital (NAV) -0.73%   7.72%   -4.89%   22.17% 3.96% 8.36% 10.44% 13.48% 14.93%
FPA Capital (with load^) -5.94%   2.07%  -9.88%   19.99% 2.85% 7.78% 10.05% 13.18% 14.71%
Russell 2000 Index -1.54% 10.70%  -4.25%   20.34% 1.45% 6.19%   7.33%   8.88%   9.52%
Russell 2500 Index -0.73% 12.16%   -2.23%   22.13% 2.35% 7.44%   8.80%   10.32% 11.38%
^Sales charges vary depending in levels of investment. See prospectus.
** Annualized

After Tax Returns Historical Performance

Portfolio Structure *

CASH PLUS LIQUIDITY:
32.2%
TOTAL NET ASSETS:
$1.3 Billion
TOTAL SECURITIES IN PORTFOLIO
25


Top Sectors*


Top Holdings*

Arrow Electronics   6.8%   Rosetta   5.7%
Ensco plc
   6.7%   Trinity
   4.8%
Rowan Companies   6.6%   Foot Locker   2.7%
Avnet   6.5%   Signet Jewelers   2.5%
Western Digital   6.4%   Oshkosh   2.2%
 
Excludes U.S. Treasuries
Top 10 Holdings represent 50.8% of Total Net Assets

Portfolio Holdings

* As of March 31, 2012. Past performance is not indicative of future performance. The returns shown for the Fund are calculated at both net asset value (NAV) and reflecting the deduction of the maximum sales charge of 5.25% (with load). The Russell 2000 Index consists of the 2,000 smallest companies in the Russell 3000 total capitalization universe. This index is considered a measure of small capitalization stock performance. The Standard & Poor's 500 Stock Index (S&P 500) is a capitalization-weighted index which covers industrial, utility, transportation and financial service companies, and represents approximately 75% of the New York Stock Exchange (NYSE) capitalization and 30% of NYSE issues. This index is considered a measure of large capitalization stock performance. These indices do not reflect any commissions or fees which would be incurred by an investor purchasing the stocks they represent. The performance of the Fund and of the Averages is computed on a total return basis which includes reinvestment of all distributions.


As of April 30, 2012
 
(NAV) 1 Year 5 Years 10 Years
Before Tax -4.89% 3.96% 8.36%
After Tax on Distribution -4.89% 3.17% 7.50%
 
After Tax on Distribution and Sale of Fund Shares -4.15% 3.07% 7.05%
 
(With Load) 1 Year 5 Years 10 Years
Before Tax -9.88% 2.85% 7.78%
After Tax on Distribution -9.88% 2.06% 6.92%
 
After Tax on Distribution and Sale of Fund Shares -8.40% 2.11% 6.52%

*Performance has been calculated on a total return basis, which combines principal and dividend income changes for the periods shown. Principal changes are based on the difference between the beginning and closing net asset values for the period and assume reinvestment of all dividends and distributions paid. The maximum sales charge of 5.25% and all applicable expenses such as advisory fees have been included in calculating the after tax (with load) performance. Total return calculations are based on a $10,000 investment. This data represents past performance and investors should understand that investment returns and principal values fluctuate, so that when you redeem your investment it may be worth more or less than its original cost. The Prospectus details the Fund's objective and policies, sales charges, and other matters of interest to the prospective investor. Please read this Prospectus carefully before investing.