Insight into the Fund's Latest Investment Decisions and Portfolio Adjustments
Vanguard Health Care Fund (Trades, Portfolio), steered by the seasoned Wellington Management Company LLP since 1984, is a beacon for investors targeting long-term capital appreciation within the health care sector. Under the leadership of Jean M. Hynes, CFA, the fund meticulously selects stocks with robust balance sheets and promising growth prospects, often capitalizing on post-negative event market dips to secure valuable positions.
Summary of New Buys
Vanguard Health Care Fund (Trades, Portfolio) expanded its portfolio with 2 new stocks in the third quarter of 2023, notably:
- Novo Nordisk A/S (NVO, Financial), purchasing 1,481,580 shares, which now comprise 0.31% of the portfolio, valued at $134.9 million.
- RayzeBio Inc (RYZB, Financial), acquiring 1,198,440 shares, making up about 0.06% of the portfolio, with a total investment of $26.6 million.
Key Position Increases
The fund also bolstered its stakes in 23 stocks, with significant increases in:
- Otsuka Holdings Co Ltd (TSE:4578, Financial), adding 6,114,100 shares for a total of 7,660,100 shares, marking a 395.48% surge in share count and a 0.49% portfolio impact, valued at ¥271,972,730.
- Apellis Pharmaceuticals Inc (APLS, Financial), with an additional 3,847,474 shares, doubling the holding to 7,681,892 shares, valued at $292.2 million.
Summary of Sold Out Positions
The fund exited 9 holdings entirely in the third quarter of 2023, including:
- Ono Pharmaceutical Co Ltd (TSE:4528, Financial), selling all 15,559,690 shares, impacting the portfolio by -0.59%.
- Seagen Inc (SGEN, Financial), liquidating 1,456,537 shares, also resulting in a -0.59% portfolio impact.
Key Position Reductions
Portfolio adjustments included reducing positions in 14 stocks, with notable reductions in:
- Stryker Corp (SYK, Financial) by 399,116 shares, a -10.41% decrease, affecting the portfolio by -0.26%. The stock's average trading price was $286.76 during the quarter, with a 3.59% return over the past 3 months and a 21.39% year-to-date gain.
- Regeneron Pharmaceuticals Inc (REGN, Financial) by 167,147 shares, a -13.71% reduction, impacting the portfolio by -0.26%. The stock traded at an average of $785.91 and returned -2.60% over the past 3 months and 12.07% year-to-date.
Portfolio Overview
As of the third quarter of 2023, Vanguard Health Care Fund (Trades, Portfolio)'s portfolio comprised 100 stocks. The top holdings were 7.73% in Eli Lilly and Co (LLY, Financial), 7.08% in UnitedHealth Group Inc (UNH, Financial), 6.05% in AstraZeneca PLC (LSE:AZN, Financial), 5.17% in Novartis AG (XSWX:NOVN, Financial), and 4.78% in Merck & Co Inc (MRK, Financial).
The fund's investments are primarily concentrated in the Healthcare, Industrials, and Financial Services sectors, reflecting a strategic focus on these key areas of growth and innovation.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
