FPA Capital Fund, Inc. (Closed to New Investors)

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 September 30, 2014

Comparative Performance Monthly

Fund/IndexMTDYTD1 Year3 Years**5 Years**10 Years**15 Years**20 Years** Since 7/11/84**
FPA Capital -6.61 %1.45 %6.78 %15.74 %12.63 %8.34 %10.57 %12.88 %14.65 %
Russell 2500 -5.14 %0.28 %8.97 %22.80 %15.99 %9.45 %9.42 %10.73 %11.78 %
Russell 2000 -6.05 %-4.41 %3.93 %21.26 %14.29 %8.19 %7.93 %9.03 %9.98 %

** Annualized.
Inception for FPA Management was July 11, 1984.
A redemption fee of 2.00% will be imposed on redemptions within 90 days.
Expense ratio calculated as of most recent prospectus is 0.83%.
Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. 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. Current month-end performance data may be obtained by calling toll-free, 1-800-982-4372.


As of September 30, 2014

Average Annual Returns

Fund/IndexQTRYTD1 Year3 Years**5 Years**10 Years**15 Years**20 Years** Since 7/11/84**Expense Ratio1
FPA Capital -8.78 %1.45 %6.78 %15.74 %12.63 %8.34 %10.57 %12.88 %14.65 %0.83 %
Russell 2500 -5.35 %0.28 %8.97 %22.80 %15.99 %9.45 %9.42 %10.73 %11.78 %
Russell 2000 -7.36 %-4.41 %3.93 %21.26 %14.29 %8.19 %7.93 %9.03 %9.98 %

** Annualized.
Inception for FPA Management was July 11, 1984.
A redemption fee of 2.00% will be imposed on redemptions within 90 days.
1Expense Ratio is calculated as of the date of the most recent prospectus.
Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. 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. Current month-end performance data may be obtained by calling toll-free, 1-800-982-4372.
The FPA Capital Fund is closed to new investors


Historical Annual Returns

FPA Capital Fund, Inc.*Russell 2500Russell 2000
201322.85 %36.80 %38.82 %
20129.69 %17.88 %16.35 %
20110.90 %-2.51 %-4.18 %
201024.25 %26.71 %26.85 %
200953.78 %34.39 %27.17 %
2008-34.79 %-36.79 %-33.79 %
2007-0.39 %1.38 %-1.57 %
20065.42 %16.17 %18.37 %
200516.53 %8.11 %4.55 %
200412.62 %18.29 %18.33 %
200338.54 %45.51 %47.25 %
2002-3.86 %-17.80 %-20.48 %
200138.13 %1.22 %2.49 %
2000-3.08 %4.27 %-3.02 %
199914.24 %24.14 %21.26 %
1998-0.42 %0.38 %-2.55 %
199717.70 %24.36 %22.36 %
199637.76 %19.03 %16.49 %
199538.39 %31.70 %28.45 %
199410.37 %-1.05 %-1.82 %
199316.74 %16.55 %18.88 %
199221.57 %16.09 %18.41 %
199164.51 %46.89 %46.04 %
1990-13.80 %-14.88 %-19.48 %
198924.30 %19.43 %16.26 %
198818.11 %22.73 %25.02 %
198710.75 %-4.68 %-8.80 %
198612.57 %11.98 %5.68 %
198528.95 %31.93 %31.05 %
19847.00 %6.94 %2.44 %

* Inception for FPA Management was July 11, 1984.
* Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. 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. All applicable expenses such as advisory fees have been included in calculating performance. 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. Current month-end performance data may be obtained at http://www.fpafunds.com/capital or by calling toll-free, 1-800-982-4372.
You should consider the Fund’s investment objectives, risks, and charges and expenses carefully before you invest. 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. The Prospectus may be obtained at http://www.fpafunds.com or by email at info@fpafunds.com, toll-free by calling 1-800-982-4372 or by contacting the Fund in writing.


As of September 30, 2014

After-Tax Returns

1 Year5 Years10 Years
Before Tax6.78 %12.63 %8.34 %
After Tax on Distribution*4.01 %11.37 %6.96 %
After Tax on Distribution and Sale of Fund Shares*5.19 %10.11 %6.65 %
end of data

* After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend upon an investor's tax situation and may differ from those shown. After-tax returns presented here are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or IRAs. 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. 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.


Portfolio Structure *

CASH PLUS LIQUIDITY:
27.4%
TOTAL NET ASSETS:
$1.4 Billion
TOTAL SECURITIES IN PORTFOLIO
29



Top Sectors*



Top Holdings*

Rosetta
  5.6%   Interdigital
  4.4%
Avnet
  4.8%   Arris
  4.2%
Arrow Electronics
  4.8%   Western Digital
  4.1%
Rowan Companies
  4.7%   Atwood Oceanics
  4.0%
Apollo Group   4.6%   Ensco plc   3.7%
 
Excludes U.S. Treasuries
Top 10 Holdings represent 44.8% of Total Net Assets

Portfolio Holdings

* As of June 30, 2014.  Portfolio composition will change due to ongoing management of the funds.  References to individual securities or sectors are for informational purposes only and should not be construed as recommendations by the Funds, Advisor or Distributor.
   
Past performance is not indicative of future performance. 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 Russell 2500 Index consists of the 2,500 smallest companies in the Russell 3000 total capitalization universe. The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization. This index is considered a measure of small to medium 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 Indices is computed on a total return basis which includes reinvestment of all distributions.  It is not possible to invest in an index


As of June 30, 2012
 
(NAV) 1 Year 5 Years 10 Years
Before Tax -10.87% 1.77% 8.06%
After Tax on Distribution -10.87% 0.99% 7.20%
 
After Tax on Distribution and Sale of Fund Shares  -9.24% 1.22% 6.82%
 
(With Load) 1 Year 5 Years 10 Years
Before Tax -15.55%  0.68% 7.48%
After Tax on Distribution -15.55% -0.09% 6.63%
 
After Tax on Distribution and Sale of Fund Shares -13.22% -0.29% 6.29%

*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.