Attribution Analysis of US Mutual Funds through November 2015
JPMorgan Large Cap Growth Fund
According to the fund’s management, 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 research, stock selection, and risk management that leads to a diversified portfolio. The fund manager actively seeks to identify companies with positive price momentum and attractive fundamentals.
OLGAX’s assets were invested across 68 holdings in stocks, bonds, and cash as of November 2015. It managed $16.03 billion in assets as of the end of November. As of the October portfolio, its equity holdings included Regeneron Pharmaceuticals, Inc. (REGN), The Home Depot, Inc. (HD), Celgene Corporation (CELG), Delta Air Lines, Inc. (DAL), and The Sherwin-Williams Company (SHW), comprising a combined 16.9% of the fund’s portfolio.
Historical portfolios
For this analysis, we will consider OLGAX’s holdings as of October 2015, which is the latest available sectoral breakdown. The post-October holdings reflect the valuation-driven changes to the portfolio, not the actual holdings.
Stocks from the information technology, consumer discretionary, and healthcare sectors form nearly three-fourths of the fund’s net assets. They are the top three invested sectors, in that order. Fund management has avoided the telecom services and utilities sectors altogether.
From November 2014–November 2015, new positions have been initiated in most of the sectors, except energy, financials, and materials. While there was no change in the stock-level composition of financials, materials and energy have seen positions being liquidated during this period.
During this timeframe, OGLAX’s exposure to information technology and consumer staples stocks has increased. Meanwhile, healthcare, energy, and financials have seen their respective shares fall.
Have these portfolio moves helped the fund’s performance? Let’s look at that in the next article.
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