In This Article:
Insights from the First Quarter of 2025
PRIMECAP Management (Trades, Portfolio) recently submitted its 13F filing for the first quarter of 2025, offering a glimpse into its strategic investment decisions. Founded in 1983 in Pasadena, CA, PRIMECAP Management (Trades, Portfolio) is an independent investment management company that focuses on U.S.-based equity portfolios for a select group of institutions and mutual funds. The firm is renowned for its long-term investment approach, emphasizing individual decision-making, fundamental research, and a focus on value. PRIMECAP's strategy often involves identifying undervalued stocks and patiently waiting for the market to recognize their true potential. This disciplined approach allows the firm to maintain its course even when short-term market conditions are challenging.
Summary of New Buy
PRIMECAP Management (Trades, Portfolio) added a total of 12 stocks to its portfolio. The most significant addition was Flutter Entertainment PLC (NYSE:FLUT), with 952,109 shares, accounting for 0.17% of the portfolio and valued at $210.94 million. The second largest addition was Nike Inc (NYSE:NKE), consisting of 1,756,430 shares, representing approximately 0.09% of the portfolio, with a total value of $111.50 million. The third largest addition was Viking Holdings Ltd (NYSE:VIK), with 763,800 shares, accounting for 0.03% of the portfolio and valued at $30.36 million.
Key Position Increases
PRIMECAP Management (Trades, Portfolio) also increased its stakes in a total of 65 stocks. The most notable increase was in Charles Schwab Corp (NYSE:SCHW), with an additional 9,749,728 shares, bringing the total to 14,002,078 shares. This adjustment represents a significant 229.28% increase in share count, impacting the portfolio by 0.63%, with a total value of $1,096,082,670. The second largest increase was in MongoDB Inc (NASDAQ:MDB), with an additional 780,200 shares, bringing the total to 870,550. This adjustment represents a significant 863.53% increase in share count, with a total value of $152,694,470.
Summary of Sold Out
PRIMECAP Management (Trades, Portfolio) completely exited six holdings in the first quarter of 2025. Notable exits include Altair Engineering Inc (ALTR), where all 238,363 shares were sold, resulting in a -0.02% impact on the portfolio. Additionally, Las Vegas Sands Corp (NYSE:LVS) was liquidated, with all 224,100 shares sold, causing a -0.01% impact on the portfolio.
Key Position Reduces
PRIMECAP Management (Trades, Portfolio) reduced its position in 233 stocks. The most significant change was in Eli Lilly and Co (NYSE:LLY), with a reduction of 1,976,884 shares, resulting in an 11.8% decrease in shares and a -1.18% impact on the portfolio. The stock traded at an average price of $832.09 during the quarter and has returned -16.22% over the past three months and -4.68% year-to-date. Another notable reduction was in Raymond James Financial Inc (NYSE:RJF), with a reduction of 1,750,467 shares, resulting in a 15.26% decrease in shares and a -0.21% impact on the portfolio. The stock traded at an average price of $155.23 during the quarter and has returned -12.86% over the past three months and -5.77% year-to-date.