Primecap Management Company (Trades, Portfolio) was founded in September 1983 in Pasadena, California. It manages Vanguard Primecap Fund, Vanguard Capital Opportunity Fund, and Vanguard Primecap Core Fund.. Primecap was founded by Chairman and Chief Investment Officer Howard B. Schow, Vice Chairman Mitchell J. Milias, and President Theo A. Kololotrones.
Primecap team evaluates securities based on their outlook over a three to five year time horizon, with the intention of holding them considerably longer if their fundamentals warrant it. They believe successful investment decisions rests in correctly appraising the relationship between the fundamental value of a company and the market price of its stock. A company may be valuable because of its free cash flow, its assets, or both; however, a company will be a superior investment only if it is purchased at the right price. Primecap only invests in their highest conviction ideas. Continue Reading »