How the Cards Fell for 11 Large-Cap Mutual Funds in 2015
JPMorgan Large Cap Growth Fund
The JPMorgan Large Cap Growth Fund – Class A (OLGAX) “invests primarily in equity securities of large capitalization companies with market capitalizations similar to those within the universe of the Russell 1000 Growth Index. It seeks to invest in stocks that have potential to exceed market expectations for a prolonged period of time.”
The investment process comprises of research, stock selection, and risk management, which leads to a diversified portfolio. The fund manager actively seeks to identify companies with positive price momentum and attractive fundamentals.
The fund’s assets were invested across 67 holdings (stocks, bonds, and cash) as of December 2015, and it was managing assets worth $15.9 billion as of the end of December. As of November, its equity holdings included The Home Depot (HD), Regeneron Pharmaceuticals (REGN), Celgene (CELG), Delta Air Lines (DAL), and The Sherwin-Williams Company (SHW), comprising a combined 15.3% of the fund’s portfolio. The fund is quite top-heavy, as its top ten holdings form 42% of its assets.
Historical portfolios
For this analysis, we will be considering holdings as of November 2015, as that is when the fund most recently declared its sectoral breakdown. The holdings after November reflect the valuation-driven changes to the portfolio, not the actual holding.
The information technology sector forms a third of the fund’s portfolio. It is followed by the consumer discretionary and healthcare sectors, in that order, both of which form a combined 43% of the fund’s net assets.
A look at the portfolio composition over the last 12 month shows the fund managers’ increasing belief in consumer staples. The sector, which had formed a little over 4% of the portfolio a year ago, now forms ~7%. Exposure to information technology stocks has also increased in the period. This increase has come at the cost of reduced exposure to energy, financials, and industrials stocks.
Has this portfolio composition helped the fund’s performance in 2015? Let’s look at that in the next article.
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