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PRIMECAP Trims Top Biotechs and More

August 30, 2013 | About:
Sally Jones

Sally Jones

49 followers
Founded in 1983, PRIMECAP Management’s portfolio currently lists 251 stocks, nine of them new, with a total value of $69.9 billion and a quarter-over-quarter turnover of 3%. The portfolio is currently weighted with top three sectors: healthcare at 32.2%, technology at 31.2% and industrials at 13.2%. PRIMECAP Management is a mutual fund firm and the third highest in total value, right below Warren Buffett’s Berkshire Hathaway at $89.03 billion and Dodge & Cox at $84.20 billion. PRIMECAP’s 10-year average return is 9.9%.

In the second quarter, PRIMECAP was actively trading and trimming some of its top holdings, including Amgen Inc. (AMGN) and Biogen Idec Inc. (BIIB), two biotechnology medicine and pharmaceutical companies. PRIMECAP currently holds 7.72% of AMGN shares outstanding and 4.99% of BIIB.

Here are four of PRIMECAP’s high-impact reductions, made as of June 30, 2013:

Amgen Inc. (AMGN): Reduced

Impacts Portfolio: -0.38%

Current Shares: 37,348,991

Up 30% over 12 months, Amgen Inc., a biotechnology company, has a market cap of $81.91 billion; its shares were traded at around $108.60 with a P/E ratio of 18.60.

Guru Action: As of June 30, 2013, PRIMECAP Management reduced its position by 6.36%, selling 2,536,436 shares at an average price of $103.77 for a gain of 4.8%.

The firm has averaged a gain of 105% on 23,832,152 shares bought at an average price of $53.01 per share. On shares sold, the firm averaged a gain of 30% on 13,432,452 shares sold at an average price of $83.36 per share.

Track historical pricing, revenue and net income:

1377888955076.png

The five-year trading history shows a remarkable green streak of gains:

1377887407416.png

Biogen Idec Inc. (BIIB): Reduced

Impacts Portfolio: -0.28%

Current Shares: 18,246,809

Up 45% over 12 months, Biogen Idec Inc., a biotechnology company, has a market cap of $50.47 billion; its shares were traded at around $212.57 with a P/E ratio of 31.70.

Guru Action: As of June 30, 2013, PRIMECAP Management reduced its position by 5%, selling 960,744 shares at an average price of $213.68 for a loss of 0.6%.

The firm has averaged a gain of 298% on 3,980,999 shares bought at an average price of $53.38 per share. On shares sold, the firm averaged a gain of 79% on 9,954,727 shares sold at an average price of $118.63 per share.

Another remarkable history of gains:

1377887650858.png

Directv (DTV): Reduced

Impacts Portfolio: -0.37%

Current Shares: 14,966,390

Up 12% over 12 months, Directv has a market cap of $31.99 billion; its shares were traded at around $58.19 with a P/E ratio of 12.10.

Guru Action: As of June 30, 2013, PRIMECAP Management reduced its position by 22.98%, selling 4,465,900 shares at an average price of $59.90 for a loss of 2.7%.

The firm has averaged a gain of 117% on 1,417,120 shares bought at an average price of $26.80 per share. On shares sold, the firm averaged a gain of 31% on 36,335,440 shares sold at an average price of $44.53 per share.

Track historical pricing, revenue and net income:

1377889074994.png

Oracle Corporation (ORCL): Reduced

Impacts Portfolio: -0.23%

Current Shares: 24,270,386

Up 1% over 12 months, Oracle Corporation has a market cap of $148 billion; its shares were traded at around $31.95 with a P/E ratio of 13.90.

Guru Action: As of June 30, 2013, PRIMECAP Management reduced its position by 16.2%, selling 4,692,000 shares at an average price of $33.18 for a loss of 3.7%.

The firm has averaged a gain of 57% on 4,082,094 shares bought at an average price of $20.32 per share. On shares sold, the firm averaged a gain of 9% on 39,728,500 shares sold at an average price of $29.42 per share.

Track historical pricing, revenue and net income:

1377889364005.png

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PRIMECAP Management is a mutual fund firm managing Vanguard’s PRIMECAP Fund, Vanguard Capital Opportunity Fund, and Vanguard PRIMECAP Core Fund, as well as three PRIMECAP Odyssey Funds.

The company was founded by chairman and CIO Howard B. Schow, vice chairman Mitchell Milias, and president Theo Kolokotrones.

Here is the complete portfolio of PRIMECAP Management.



Be sure to read:

1. PRIMECAP Management's Undervalued Stocks

2. PRIMECAP Management's Top Growth Companies

3. PRIMECAP Management's High Yield stocks

4. Stocks that PRIMECAP Management keeps buying

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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 2.8/5 (4 votes)

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