[Steven Romick](/guru/steven+romick/summary) ( [Trades](/StockBuy.php?GuruName=Steven+Romick) , [Portfolio](/holdings.php?GuruName=Steven+Romick) ), manager of the FPA Crescent Fund, disclosed this week that his fund’s top trades during the third quarter included the exchanging of its Alibaba Group Holding Ltd. ( [BABA](/stock/BABA/summary) , [Financial](/financials/BABA) ) and Baidu Inc. ( [BIDU](/stock/BIDU/summary) , [Financial](/financials/BIDU) ) holdings to Hong Kong-based shares ( [HKSE:09988](/stock/HKSE:09988/summary) , [Financial](/financials/HKSE:09988) )( [HKSE:09888](/stock/HKSE:09888/summary) , [Financial](/financials/HKSE:09888) ), a short position in the SPDR S&P 500 ETF Trust ( [SPY](/stock/SPY/summary) , [Financial](/financials/SPY) ), a position boost in Prosus NV ( [XAMS:PRX](/stock/XAMS:PRX/summary) , [Financial](/financials/XAMS:PRX) ) and reductions to its holdings in Naspers Ltd. ( [JSE:NPN](/stock/JSE:NPN/summary) , [Financial](/financials/JSE:NPN) ) and Meggitt PLC ( [LSE:MGGT](/stock/LSE:MGGT/summary) , [Financial](/financials/LSE:MGGT) ). The fund, part of Los Angeles-based [First Pacific Advisors](/guru/first+pacific+advisors/summary) ( [Trades](/StockBuy.php?GuruName=First+Pacific+Advisors) , [Portfolio](/holdings.php?GuruName=First+Pacific+Advisors) ), seeks long-term capital appreciation through both long and short equity positions. FPA Crescent finds value in all parts of a company’s capital structure, including common and preferred stocks, convertible bonds and corporate bonds. The fund looks for companies that trade at discounts to private market value and reflect low cyclically-adjusted price-earnings ratios. Alibaba FPA Crescent sold 673,113 U.S.-based shares of Alibaba ( [BABA](/stock/BABA/summary) , [Financial](/financials/BABA) ), chopping 1.86% of its equity portfolio. Shares averaged $182.30 during the third quarter. With the proceeds, the firm purchased 5,586,312 Hong Kong-based shares of Alibaba ( [HKSE:09988](/stock/HKSE:09988/summary) , [Financial](/financials/HKSE:09988) ), giving the position 1.40% equity portfolio weight. Shares averaged 177.96 Hong Kong dollars ($22.89) during the third quarter; the stock is significantly undervalued based on Wednesday’s [price-to-GF Value ratio](/term/gf_value/HKSE:09988/GF-Value/Alibaba-Group-Holding) of 0.48. GuruFocus ranks the e-commerce giant’s [profitability](/term/rank_profitability/HKSE:09988/Profitability-Rank/Alibaba%20Group%20Holding) 8 out of 10 on several [positive investing signs](/stock/BABA/warning-signs) , which include a three-star [business predictability rank](/term/predictability_rank/HKSE:09988/Predictability-Rank/Alibaba%20Group%20Holding) and [profit margins](/term/operatingmargin/HKSE:09988/Operating-Margin-/Alibaba-Group-Holding) and [returns](/term/ROE/HKSE:09988/ROE-Percentage/Alibaba%20Group%20Holding) that outperform more than 80% of [global competitors](/stock/BABA/analysis?tab=current-analysis) . Gurus with holdings in Alibaba include [Charlie Munger](/guru/charlie+munger/summary) ( [Trades](/StockBuy.php?GuruName=Charlie+Munger) , [Portfolio](/holdings.php?GuruName=Charlie+Munger) )’s Daily Journal Corp. ( [DJCO](/stock/DJCO/summary) , [Financial](/financials/DJCO) ), [Baillie Gifford](/guru/baillie+gifford/summary) ( [Trades](/StockBuy.php?GuruName=Baillie+Gifford) , [Portfolio](/holdings.php?GuruName=Baillie+Gifford) ) and [Ken Fisher](/guru/ken+fisher/summary) ( [Trades](/StockBuy.php?GuruName=Ken+Fisher) , [Portfolio](/holdings.php?GuruName=Ken+Fisher) ). Baidu FPA Crescent sold 445,804 U.S.-based shares of Baidu ( [BIDU](/stock/BIDU/summary) , [Financial](/financials/BIDU) ), slicing 1.11% of its equity portfolio. Shares averaged $164.72 during the third quarter. With the proceeds, the fund purchased 3,868,925 Hong Kong-based shares of Baidu ( [HKSE:09888](/stock/HKSE:09888/summary) , [Financial](/financials/HKSE:09888) ), giving the position 1.01% equity portfolio space. Shares averaged HK$160.35 ($20.63) during the third quarter; the stock is fairly valued based on Wednesday’s [price-to-GF Value ratio](/term/gf_value/HKSE:09888/GF-Value/Baidu) of 1.04. GuruFocus ranks the Chinese online search giant’s [profitability](/term/rank_profitability/HKSE:09888/Profitability-Rank/Baidu) 8 out of 10 on the back of [profit margins](/term/operatingmargin/HKSE:09888/Operating-Margin-/Baidu) and [returns](/term/ROE/HKSE:09888/ROE-Percentage/Baidu) outperforming more than 80% of [global competitors](/stock/HKSE:09888/analysis?tab=current-analysis) . SPDR S&P 500 ETF Trust The fund shorted 505,929 shares of SPDR S&P 500 ETF Trust ( [SPY](/stock/SPY/summary) , [Financial](/financials/SPY) ), impacting the portfolio by -2.94%. Shares averaged $439.92 during the third quarter. The SPDR S&P 500 ETF Trust seeks to track the performance of the [Standard & Poor’s 500 index](/economic_indicators/63) . On Wednesday, the index closed at 4,536.31, up 16.68 points from Tuesday’s close of 4,519.63. On Wednesday, the S&P 500 has a [Shiller price-earnings ratio](/shiller-PE.php) of 38.7, approximately 50.5% higher than the 20-year average ratio of 25.70. Prosus The fund purchased 1,453,994 shares of Prosus ( [XAMS:PRX](/stock/XAMS:PRX/summary) , [Financial](/financials/XAMS:PRX) ), boosting the position by 149.82% and its equity portfolio by 1.58%. Shares averaged 74.45 euros ($86.75) during the third quarter. GuruFocus ranks the Netherlands-based consumer internet group’s [financial strength](/term/rank_balancesheet/XAMS:PRX/Financial-Strength/Prosus-NV) 5 out of 10 on the back of a double-digit [Altman Z-score](/term/zscore/XAMS:PRX/Altman-Z-Score/Prosus-NV) despite [debt ratios](/term/deb2equity/XAMS:PRX/Debt-to-Equity/Prosus%20NV) underperforming more than 60% of global [competitors](/stock/XAMS:PRX/analysis?tab=current-analysis) . Naspers The fund sold 615,085 shares of Naspers ( [JSE:NPN](/stock/JSE:NPN/summary) , [Financial](/financials/JSE:NPN) ), slashing 64% of the position and 1.57% of its equity portfolio. Shares averaged 2,634.29 South African rand ($182.90) during the third quarter; the stock is significantly undervalued based on Wednesday’s [price-to-GF Value ratio](/term/gf_value/JSE:NPN/GF-Value/Naspers) of 0.52. GuruFocus ranks the South African internet and technology company’s [financial strength](/term/rank_balancesheet/JSE:NPN/Financial-Strength/Naspers) 4 out of 10 on the back of [debt ratios](/term/deb2equity/JSE:NPN/Debt-to-Equity/Naspers) underperforming more than 66% of [global competitors](/stock/JSE:NPN/analysis?tab=current-analysis) despite having a strong [Altman Z-score](/term/zscore/JSE:NPN/Altman-Z-Score/Naspers) of 4.75. Meggitt The fund sold 13,499,298 shares of Meggitt ( [LSE:MGGT](/stock/LSE:MGGT/summary) , [Financial](/financials/LSE:MGGT) ), slicing 82.87% of the position and 1.05% of the equity portfolio. Shares averaged 6.64 pounds ($9.18) during the third quarter; the stock is significantly overvalued based on Wednesday’s [price-to-GF Value ratio](/term/gf_value/LSE:MGGT/GF-Value/Meggitt-PLC) of 1.76. GuruFocus ranks the U.K.-based aerospace and defense company’s [financial strength](/term/rank_balancesheet/LSE:MGGT/Financial-Strength/Meggitt-PLC) 4 out of 10 on several [warning signs](/stock/LSE:MGGT/warning-signs) , which include a low [Piotroski F-score](/term/fscore/LSE:MGGT/Piotroski-F-Score/Meggitt) of 3, a modestly weak [Altman Z-score](/term/zscore/LSE:MGGT/Altman-Z-Score/Meggitt) of 2.25 and [interest coverage](/term/interest_coverage/LSE:MGGT/Interest-Coverage/Meggitt) and [debt ratios](/term/deb2equity/LSE:MGGT/Debt-to-Equity/Meggitt) that are underperforming more than 75% of [global competitors](/stock/LSE:MGGT/analysis?tab=current-analysis) .