Primecap Management focuses on investing in high quality companies that offer better earnings growth prospects than are anticipated by the market. They remain very overweight in the health care and information technology sectors and very underweight in the financials and consumer staples sectors.
Primecap Management has been underweight in financials since 2004. They wrote in shareholder letter: “In our view, financial institutions remain highly leveraged companies with opaque balance sheets that are based, in no small way, on assumptions about future losses. The funds benefited from a minimal weighting in the financials sector, the worst sector in the market for the six-month period (-29.13%). However, the financials sector has led the recent rally in the stock market, and the funds’ underweight position has hurt performance since early March.”
Primecap Management is doing much more buying than selling in the third quarter.
PRIMECAP Management buys Electronic Arts Inc., John Wiley & Sons Inc., Rovi Corp., Kellogg Company, Seahawk Drilling Inc., Immunogen Inc., Internet Brands, Inc, Netscout Systems Inc., sells Data Domain, Inc., Interval Leisure Group, Inc., JPMorgan Chase & Co., Nordstrom Inc., Medarex Inc., Macrovision Solutions Corporation during the 3-months ended 09/30/2009, according to the most recent filings of his investment company, PRIMECAP Management. PRIMECAP Management owns 237 stocks with a total value of $56.5 billion. These are the details of the buys and sells.
This is the sector weightings of his portfolio:
These are the top 5 holdings of PRIMECAP Management
Primecap Management has been underweight in financials since 2004. They wrote in shareholder letter: “In our view, financial institutions remain highly leveraged companies with opaque balance sheets that are based, in no small way, on assumptions about future losses. The funds benefited from a minimal weighting in the financials sector, the worst sector in the market for the six-month period (-29.13%). However, the financials sector has led the recent rally in the stock market, and the funds’ underweight position has hurt performance since early March.”
Primecap Management is doing much more buying than selling in the third quarter.
PRIMECAP Management buys Electronic Arts Inc., John Wiley & Sons Inc., Rovi Corp., Kellogg Company, Seahawk Drilling Inc., Immunogen Inc., Internet Brands, Inc, Netscout Systems Inc., sells Data Domain, Inc., Interval Leisure Group, Inc., JPMorgan Chase & Co., Nordstrom Inc., Medarex Inc., Macrovision Solutions Corporation during the 3-months ended 09/30/2009, according to the most recent filings of his investment company, PRIMECAP Management. PRIMECAP Management owns 237 stocks with a total value of $56.5 billion. These are the details of the buys and sells.
- New Purchases: ERTS, HAWK, IMGN, INET, JW-A, K, NTCT, ROVI,
- Added Positions: ABMD, AKAM, ALGT, AMGN, ARAY, BA, CFX, COG, CPHD, CRL, DNDN, ERIC, EXH, FLEX, FPL, GUID, ILMN, IN, LLY, LMNX, MMC, NKTR, NSC, NUAN, OSUR, PBR-A, PCYC, ROK, VRGY,
- Reduced Positions: BK, NTGR, ONNN,
- Sold Out: IILG, JPM, JWN, MVSN,
This is the sector weightings of his portfolio:
| Technology | 30% |
| Health Care | 23.8% |
| Consumer Services | 13.1% |
| Industrials | 12.2% |
| Oil & Gas | 6.8% |
| Basic Materials | 4.3% |
| Financials | 3.8% |
| Consumer Goods | 3.8% |
| Telecommunications | 0.2% |
| Utilities | 0.2% |
These are the top 5 holdings of PRIMECAP Management
- Amgen Inc. (AMGN) - 39,278,616 shares, 4.19% of the total portfolio
- Eli Lilly And Company (LLY) - 62,428,802 shares, 3.65% of the total portfolio
- Novartis AG (NVS) - 37,443,854 shares, 3.34% of the total portfolio
- FedEx Corp. (FDX) - 23,062,721 shares, 3.07% of the total portfolio
- Google Inc. (GOOG) - 3,179,626 shares, 2.79% of the total portfolio
