Insight into PRIMECAP Management (Trades, Portfolio)'s Latest 13F Filing and Its Impact on Portfolio Dynamics
Founded in 1983 and based in Pasadena, CA, PRIMECAP Management (Trades, Portfolio) operates as an independent investment management firm, focusing on U.S.-centric equity portfolios. The firm is renowned for its commitment to fundamental research, individual decision-making, a long-term investment horizon, and a value-focused approach. PRIMECAP's investment strategy is characterized by a multi-counselor model, allowing each portfolio manager autonomy over distinct segments of the portfolio. This approach enables the firm to identify undervalued stocks poised for outperformance over a three to five-year period, often starting with sectors that are currently unpopular among investors.
Summary of New Buys
During the second quarter of 2024, PRIMECAP Management (Trades, Portfolio) expanded its portfolio by adding eight new stocks. Noteworthy new acquisitions include:
- Exxon Mobil Corp (XOM, Financial), purchasing 8,514,677 shares, which now represent 0.71% of the portfolio, valued at approximately $980.21 million.
- Casey's General Stores Inc (CASY, Financial), with 63,200 shares, making up about 0.02% of the portfolio, valued at $24.11 million.
- GRAIL Inc (GRAL, Financial), acquiring 1,865,276 shares, also accounting for 0.02% of the portfolio, with a total value of $28.67 million.
Key Position Increases
PRIMECAP Management (Trades, Portfolio) also significantly increased its stakes in 96 stocks. Highlights include:
- A substantial increase in Illumina Inc (ILMN, Financial) shares, adding 1,997,010 shares for a total of 2,428,760 shares, marking a 462.54% increase and impacting the portfolio by 0.15%, valued at $253.51 million.
- PayPal Holdings Inc (PYPL, Financial) saw an addition of 3,184,160 shares, bringing the total to 4,946,460 shares, a 180.68% increase, valued at $287.04 million.
Summary of Sold Out Positions
In Q2 2024, PRIMECAP Management (Trades, Portfolio) exited 11 positions entirely, including:
- Pioneer Natural Resources Co (PXD, Financial), selling all 4,342,556 shares, impacting the portfolio by -0.85%.
- Shockwave Medical Inc (SWAV, Financial), liquidating 276,770 shares, with a -0.07% portfolio impact.
Key Position Reductions
Significant reductions were made in 188 stocks. The most notable reductions were:
- Eli Lilly and Co (LLY, Financial), with a reduction of 1,636,108 shares, decreasing the stake by 7.7% and impacting the portfolio by -0.95%. The stock traded at an average price of $799.92 during the quarter and has seen a 15.90% return over the past three months and a 53.68% year-to-date return.
- Wells Fargo & Co (WFC, Financial), reducing the position by 5,216,519 shares, a 12.3% decrease, impacting the portfolio by -0.23%. The stock's average trading price was $59.04 during the quarter, with a -13.20% return over the past three months and a 9.46% year-to-date return.
Portfolio Overview
As of the second quarter of 2024, PRIMECAP Management (Trades, Portfolio)'s portfolio comprised 332 stocks. The top holdings included 12.86% in Eli Lilly and Co (LLY), 3.56% in Micron Technology Inc (MU, Financial), 3.29% in KLA Corp (KLAC, Financial), 3.27% in Amgen Inc (AMGN, Financial), and 3.25% in Microsoft Corp (MSFT, Financial). The portfolio is well-diversified across all 11 industries, including Technology, Healthcare, Industrials, and more.
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.
