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Vanguard Health Care Fund Gains 27%, Buys 4 New Stocks

July 31, 2013 | About:
Holly LaFon

Holly LaFon

266 followers
Edward Owens retired at the end of 2012, but his Vanguard Health Care Fund (VGHCX) lives on under the management of Jean M. Hynes CFA, a Vanguard senior vice president, partner and global industry analyst who joined the company in 2008. Owens outperformed every other U.S. mutual fund since its inception in 1984 through his retirement.

The fund is set up to include at least 80% health care stocks and up to 50% foreign stocks, though currently 21.9% of its $28.2 billion in net assets is stationed in foreign stocks. The management approach remains conservative and diversified, often establishing positions in companies that have recently faced a negative event that has caused a decline in share price or where a new product could drive up share price.

In the seven months since the management transition, the Vanguard Health Care Fund has returned 26.93%. In the second quarter of 2013 four new stocks were added: Edwards Lifesciences Corp. (EW), Hologic Inc. (HOLX), PerkinElmer Inc. (PKI) and Quintiles Transnational Holdings Inc. (Q).

Quintiles Transnational Holdings Inc. (Q)

Vanguard bought 864,130 shares of Quintiles Transnational Holdings for $44 per share on average in the second quarter. The smallest new holding, it is approximately 0.13% of the portfolio. It currently trades for $44.99 per share, up 3%.

Quintiles is the largest provider of biopharmaceutical development services and commercial outsourcing services in the world, doing business in about 100 countries. The company has a $5.82 billion market cap with a 29.9 P/E and 1.0 P/S. Founded 30 years ago, Quintiles held its IPO in May.

This is its price history since it began trading:

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PerkinElmer Inc. (PKI)

Vanguard bought 1,441,400 new shares of PerkinElmer Inc. for $33 per share on average, after which the stock gained 5% to trade at $34.29 Wednesday. The holding occupies 0.17% of the portfolio.



PerkinElmer Inc., a Massachusetts corporation, was founded in 1947. PerkinElmer Inc. has a market cap of $3.82 billion; its shares were traded at around $34.29 with a P/E ratio of 50.10 and P/S ratio of 1.90. The dividend yield of PerkinElmer Inc. stocks is 0.80%. PerkinElmer Inc. had an annual average earnings growth of 0.5% over the past 10 years.

This is the company’s historical 10-year price, revenue, earnings and P/E ratio:

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Hologic Inc. (HOLX)

Vanguarded bought 4,304,500 shares of Hologic for $21 per share on average in a 0.3% new position. Shares gained 7% since, trading at $22.29 Wednesday.



Hologic Inc. is a women’s health company incorporated in Massachusetts in October 1985 and reincorporated in Delaware in March 1990. Hologic Inc. has a market cap of $6.17 billion; its shares were traded at around $22.70 with a P/E ratio of 14.90 and P/S ratio of 2.60.

Here is the company’s price, revenue and earnings history:

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Edwards Lifesciences Corp. (EW)

The largest new position is 1,311,100 shares of Edwards Lifesciences Corp. at $71 per share on average, or 0.32% of the portfolio. The stock price is up 1% since.



Edwards Lifesciences Corporation was incorporated in Delaware on Sept. 10, 1999. Edwards Lifesciences Corporation has a market cap of $8.12 billion; its shares were traded at around $71.39 with a P/E ratio of 22.60 and P/S ratio of 4.30.

Edwards Lifesciences Corporation had an annual average earnings growth of 12.8% over the past 10 years. GuruFocus rated Edwards Lifesciences Corporation the business predictability rank of 4.5-star.

Here is Edwards Lifesciences’ historic price, revenue earnings and P/E ratio:

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See more stocks of the Vanguard Health Care Fund in its portfolio here. Also check out the Undervalued Stocks, Top Growth Companies, and High Yield stocks of Vanguard Health Care Fund.


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