Primecap Management Co/ca/
PRIMECAP Management Company is an independent investment management firm headquartered in Pasadena, California. Founded in 1983, it is known for managing US-focused equity portfolios for both mutual funds (notably for Vanguard and its own Odyssey Funds) and a limited number of large institutional investors including pension funds and endowments. With a reputation for long-term investment performance and a research-intensive approach, PRIMECAP maintains a small team—35 employees as of 2016—focused almost exclusively on portfolio management and fundamental research. The firm avoids sales and marketing, preferring to keep a low profile in the industry.
Investment Strategy
PRIMECAP Management Company's investment strategy is rooted in fundamental research, long-term value orientation, and decentralized individual decision-making. Portfolio managers independently manage their own segments of each portfolio. The firm emphasizes selecting stocks based on superior growth prospects, often identified through meetings with company management, and holds positions for extended periods (the average holding is 20 years in their flagship Vanguard fund). PRIMECAP avoids groupthink and focuses purely on research, limiting its AUM to maintain its high-conviction investment model.
Top Holdings
Equity Positions (329)
| Ticker | Security | Weight | Market Value | Shares | Avg Cost | Price | Change (QoQ) |
|---|---|---|---|---|---|---|---|
L LLY | ELI LILLY & CO | 7.51% | $9.48B | 12,154,908 | $55.03 | $779.53 | -$2.73B |
M MSFT | MICROSOFT CORP | 3.59% | $4.53B | 9,115,265 | $28.33 | $497.41 | +$1.12B |
K KLAC | KLA CORP | 3.18% | $4.01B | 4,480,277 | $60.41 | $895.74 | +$697.8M |
M MU | MICRON TECHNOLOGY INC | 3.07% | $3.88B | 31,465,876 | $13.30 | $123.25 | +$638.8M |
B BSX | BOSTON SCIENTIFIC CORP | 2.95% | $3.72B | 34,662,722 | $17.30 | $107.41 | +$41.3M |