Insightful Analysis of PRIMECAP's Latest 13F Filing
Founded in 1983, PRIMECAP Management (Trades, Portfolio) is a distinguished investment management firm based in Pasadena, CA. The company is renowned for its disciplined investment strategy which emphasizes long-term equity results through fundamental research, individual decision-making, and a focus on undervalued stocks. PRIMECAP's approach is particularly unique due to its multi-counselor investment model, allowing individual portfolio managers autonomous control over specific segments of the portfolio. This strategy enables the firm to identify and capitalize on market opportunities before they become mainstream, maintaining investments even in the face of short-term market volatility.
New Additions to the Portfolio
During the first quarter of 2024, PRIMECAP Management (Trades, Portfolio) expanded its portfolio by adding six new stocks. Noteworthy among these was ConocoPhillips (COP, Financial), with a substantial acquisition of 2,746,355 shares valued at approximately $349.56 million, making up 0.26% of the portfolio. Other significant new holdings include DocuSign Inc (DOCU, Financial) with 369,750 shares worth around $22.02 million, and Immunocore Holdings PLC (IMCR, Financial), where PRIMECAP invested in 49,500 shares valued at approximately $3.22 million.
Significant Increases in Existing Positions
PRIMECAP Management (Trades, Portfolio) also notably increased its stakes in several existing investments. The most dramatic increase was in NEXTracker Inc (NXT, Financial), where the firm added 7,214,743 shares, bringing its total to 8,217,513 shares. This adjustment marks a 719.48% increase in share count, impacting 0.3% of the current portfolio, with a total value of $462.4 million. Another major increase was in Alibaba Group Holding Ltd (BABA, Financial), with an additional 2,571,830 shares, bringing the total to 20,796,812 shares, valued at approximately $1.5 billion.
Complete Exits from Certain Holdings
In a strategic move, PRIMECAP Management (Trades, Portfolio) completely sold out of five positions in the first quarter of 2024. The most significant of these was Splunk Inc (SPLK, Financial), where the firm sold all 10,820,268 shares, impacting the portfolio by -1.31%. Another notable exit was from Hilton Worldwide Holdings Inc (HLT, Financial), with all 563,565 shares liquidated, causing a -0.08% impact on the portfolio.
Reductions in Key Holdings
Conversely, PRIMECAP reduced its positions in several stocks. The most substantial reduction was in Eli Lilly and Co (LLY, Financial), with a decrease of 946,344 shares, resulting in a -4.26% reduction in share count and a -0.44% impact on the portfolio. Abbott Laboratories (ABT, Financial) also saw a significant cut, with 1,915,810 shares sold off, marking a -67.03% reduction in shares and a -0.17% portfolio impact.
Portfolio Overview and Sector Allocation
As of the first quarter of 2024, PRIMECAP Management (Trades, Portfolio)'s portfolio comprised 335 stocks. The top holdings included significant stakes in Eli Lilly and Co (LLY, Financial), Micron Technology Inc (MU, Financial), Microsoft Corp (MSFT, Financial), Amgen Inc (AMGN, Financial), and KLA Corp (KLAC, Financial). The firm's investments are well-diversified across various sectors, with significant allocations in Healthcare, Technology, Industrials, and Consumer Cyclical, among others.
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.
