Perhaps a "better" question is why would an investor (long or short) in TROW be concerned about a single investment postion that represents .037% of AUM???
TROW owns 13.75% of outstanding shares of JDSU spread among 11 of its funds with T Rowe Mid Cap Growth Fund (RPMGX) by far the largest holder. RPMGX holds 15.75 million shares or 7.30% of JSDU, after having bought 750K during the first Q of this year. Second largest TROW fund owning JSDU owns .78% of its outstanding shares. That's why I'll focus only on RPMGX.
Like you, obviously RPMGX doesn't only one one position and just like you, not all investments will be profitable (the final chapter re TROW's investment has not been written yet). If you realized the following, you probably would not have posted your post (of course, I'm giving you the benefit of the doubt about other motivating factors): RPMGX's JDSU position represents .9% of its assets. I would not consider this an outsized investment! Personally I have many positions that represent more than 1% of my portfolio--heck, TROW represents 4% or so, after adding 50% more shares 4Q 08 @ 30.05 to what remained of my original position that was initated 7/20/95 at 4.40 (sorry for the digression). Since RPMGX is made up of many individual equities, I HOPE you can appreciate that the fund's total return is more relevant than one of its holdings. Let's review RPMGX's total return numbers; I used Bloomberg's function for this.
It should be noted that from what I could discern, TROW starting buying JSDU sometime in Sept 2007 (and didn't buy all shares in the 16 buck ranage).
Total return from 9/14/07 - 6/10/09: RPMGX -16.05% VIMSX -22.00% Vanguard Mid Cap INDEX FUND JDSU -37.21% SPX -16.44%
While JSDU hasn't fared too well for RPMGX,EVIDENTLY other positions have more than made up for it on a RELATIVE basis.
I do hold this fund and was quite shocked to see such a large holding of JDSU since most funds are falling all over themselves to get out. Institutions sold over 21 mil. shares and insiders bought 5 mil in the last 6 mos. I hope TROW has bought to avg down so they can get out. Although difficult to get out of 29 mil shares. Anyone looking at holdings to buy into a fund wouldn't be impressed by this if they knew anything about the market.