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Primecap Sells NVIDIA, Microsoft, Union Pacific

- By Tiziano Frateschi

PRIMECAP Management (Trades, Portfolio) was founded in September 1983 in Pasadena, California. It manages a portfolio composed of 277 stocks with a total value of $101.625 billion. During the fourth quarter the guru traded shares in the following stocks:


The guru reduced its stake of Amgen Inc. (AMGN) by 5.88% with an impact of -0.26% on the portfolio.

It is a biotechnology company that discovers, develops, manufactures and delivers human therapeutics. It operates in one business segment - human therapeutics.

GuruFocus gives the stock a profitability and growth rating of 10 out of 10. The return on equity (ROE) of 26.17% and return on assets (ROA) of 10.22% are outperforming 91% of the companies in the Global Biotechnology industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 1.10 is below the industry median of 64.60.

The largest shareholder among the gurus is PRIMECAP Management with 3.39% of outstanding shares followed by Vanguard Health Care Fund (Trades, Portfolio) with 0.25%, Jim Simons (Trades, Portfolio) with 0.24%, David Carlson (Trades, Portfolio) with 0.06%, Joel Greenblatt (Trades, Portfolio) with 0.04% and Third Avenue Management (Trades, Portfolio) with 0.03%.

The guru raised its shares of AstraZeneca PLC ADR (AZN) by 50.06% with an impact of 0.23% on the portfolio.

It is a biopharmaceutical company engaged in the discovery and development of new products, which are then manufactured, marketed and sold.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of 24.95% and ROA of 5.90% are outperforming 58% of the companies in the Global Drug Manufacturers - Major industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.35 is below the industry median of 2.89.

Dodge & Cox is the largest shareholder among the gurus with 1.96% of outstanding shares followed by PRIMECAP Management with 1.03%, Andreas Halvorsen (Trades, Portfolio) with 0.11%, Ken Fisher (Trades, Portfolio) with 0.08%, Simons with 0.06%, Pioneer Investments (Trades, Portfolio) with 0.05% and NWQ Managers (Trades, Portfolio) with 0.04%.

The guru reduced its holding of Charles Schwab Corp. (SCHW) by 14.09%. The trade had an impact of -0.23% on the portfolio.

It is a savings and loan holding company, which through its subsidiaries is engaged in securities brokerage, banking and related financial services. It operates in two segments namely Investor Services and Advisor Services.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. While the ROE of 11.67% is outperforming the sector, the ROA of 0.94% is underperforming 54% of the companies in the Global Capital Markets industry. Financial strength has a rating of 6 out of 10 with a cash-debt ratio of 3.77.

The largest shareholder among the gurus is Dodge & Cox with 7.24% of outstanding shares followed by PRIMECAP Management with 3.39%, Frank Sands (Trades, Portfolio) with 2.27%, Ruane Cunniff (Trades, Portfolio) with 0.63%, Glenn Greenberg (Trades, Portfolio) with 0.61%, Halvorsen with 0.6%, Lou Simpson (Trades, Portfolio) with 0.51% and Ron Baron (Trades, Portfolio) with 0.5%.

The guru reduced its position of NVIDIA Corp. (NVDA) by 11.04% with an impact of -0.19% on the portfolio.

It is a visual computing company, connecting people through the powerful medium of computer graphics. Its reporting segments include GPU and Tegra Processor.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 33.94% and ROA of 19.87% are outperforming 97% of the companies in the Global Semiconductors industry. Financial strength has a rating of 7 out of 10. The cash-debt ratio of 2.44 is above the industry median of 1.68.

PRIMECAP Management is the largest shareholder among the gurus with 3.81% of outstanding shares followed by Spiros Segalas (Trades, Portfolio) with 0.99%, Simons with 0.53%, Steven Cohen (Trades, Portfolio) with 0.19%, Ken Heebner (Trades, Portfolio) with 0.12% and Greenblatt with 0.07%.

The guru reduced its shares of Microsoft Corp. (MSFT) by 5.21% with an impact of -0.17% on the portfolio.

The company is engaged in designing, manufacturing, selling devices and online advertising. Its products include operating systems for computing devices, servers, phones and other devices.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 23.11% and ROA of 8.44% are outperforming 76% of the companies in the Global Software - Infrastructure industry. Financial strength has a rating of 6 out of 10 with cash-debt ratio of 1.45 that is below the industry median of 10.14.

The largest shareholder among the gurus is PRIMECAP Management with 0.69% of outstanding shares followed by Jeff Ubben (Trades, Portfolio) with 0.5%, First Eagle Investment (Trades, Portfolio) with 0.31%, Halvorsen with 0.28%, Barrow, Hanley, Mewhinney & Strauss with 0.24% and Pioneer Investments with 0.21%.

The firm reduced its stake of Medtronic PLC (MDT) by 11.84% with an impact of -0.15% on the portfolio.

The company is engaged in providing medical technology alleviating pain, restoring health and extending lives. It currently functions in three operating segments that manufacture and sell device-based medical therapies.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 7.83% and ROA of 3.99% are outperforming 65% of the companies in the Global Medical Devices industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.36 is below the industry median of 2.45.

The largest shareholder among the gurus is Barrow, Hanley, Mewhinney & Strauss with 1.5% of outstanding shares followed by Vanguard Health Care Fund with 1.41%, PRIMECAP Management with 0.93%, Dodge & Cox with 0.78%, Manning & Napier Advisors Inc. with 0.49%, Pioneer Investments with 0.38% and Jeremy Grantham (Trades, Portfolio) with 0.31%.

The guru sold shares of Union Pacific Corp. (UNP) reducing the stake by 29.06% with an impact of -0.13% on the portfolio.

It is a rail transporting company. Its operating company is Union Pacific Railroad. It links 23 states in the western two-thirds of the country by rail, providing a critical link in the global supply chain.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 20.79% and ROA of 7.61% are outperforming 85% of the companies in the Global Railroads industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.09 that is below the industry median of 0.33.

The largest shareholder among the gurus is Dodge & Cox with 1.72% of outstanding shares followed by First Eagle Investment with 0.71%, PRIMECAP Management with 0.41%, Halvorsen with 0.26%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.17%, Pioneer Investments with 0.11%, NWQ Managers with 0.08% and Tweedy Browne (Trades, Portfolio) with 0.04%.

The company added to its stake of Whirlpool Corp. (WHR) by 720.51%. The trade had an impact of 0.11% on the portfolio.

Whirlpool is a manufacturer and marketer of home appliances. It produces and sells washers, dryers, refrigerators, air conditioners, dishwashers, freezers, microwave ovens, ranges, air purifiers and other typical household appliances.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 18.39% and ROA of 4.53% are outperforming 57% of the companies in the Global Home Furnishings & Fixtures industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.24 is below the industry median of 1.31.

The largest shareholder among the gurus is Barrow, Hanley, Mewhinney & Strauss with 2.92% of outstanding shares followed by Diamond Hill Capital (Trades, Portfolio) with 2.46%, PRIMECAP Management with 0.87%, David Tepper (Trades, Portfolio) with 0.76%, Pioneer Investments with 0.29% and Paul Tudor Jones (Trades, Portfolio) with 0.24%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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This article first appeared on GuruFocus.