Vanguard Health Care Fund Amplifies Stake in Novo Nordisk A/S
Insightful Portfolio Adjustments in Q2 2024 Spotlight Prominent Healthcare Investments
Vanguard Health Care Fund (Trades, Portfolio), managed by Wellington Management Company since 1984, recently disclosed its N-PORT filing for the second quarter of 2024. Under the stewardship of Jean M. Hynes, the fund continues its legacy of seeking long-term capital appreciation through diversified investments in the healthcare sector. The fund's strategy emphasizes fundamental research, targeting companies with robust balance sheets and strong management teams poised for revenue and earnings growth, particularly after market dips.
Summary of New Buys
Vanguard Health Care Fund (Trades, Portfolio) expanded its portfolio by adding seven new stocks. Noteworthy new positions include:
Astellas Pharma Inc (TSE:4503) with 19,888,786 shares, making up 0.42% of the portfolio, valued at approximately 196.22 billion.
Guardant Health Inc (NASDAQ:GH) with 2,690,435 shares, representing 0.17% of the portfolio, valued at $77,699,760.
PACS Group Inc (NYSE:PACS) with 2,322,171 shares, accounting for 0.15% of the portfolio, valued at $68,504,050.
Key Position Increases
The fund significantly increased its holdings in several key stocks, including:
Novo Nordisk A/S (NYSE:NVO), with an additional 4,889,750 shares, bringing the total to 11,095,414 shares. This adjustment marks a 78.79% increase in share count and a 1.5% impact on the current portfolio, totaling $1,587,584,590.
Intuitive Surgical Inc (NASDAQ:ISRG), with an additional 1,074,293 shares, bringing the total to 1,675,518 shares. This represents a 178.68% increase in share count, valued at $745,354,180.
Summary of Sold Out Positions
The fund exited its positions in several companies, including:
Alcon Inc (NYSE:ALC), selling all 4,020,441 shares, impacting the portfolio by -0.71%.
Shockwave Medical Inc (SWAV), liquidating all 793,508 shares, resulting in a -0.55% portfolio impact.
Key Position Reductions
Reductions were made in several significant holdings:
Merck & Co Inc (NYSE:MRK) was reduced by 2,720,250 shares, a -13.28% decrease, impacting the portfolio by -0.77%. The stock traded at an average price of $128.81 during the quarter.
Novartis AG (XSWX:NOVN) was reduced by 3,278,941 shares, a -17.11% decrease, impacting the portfolio by -0.68%. The stock traded at an average price of CHF90.92 during the quarter.
Portfolio Overview
As of the second quarter of 2024, Vanguard Health Care Fund (Trades, Portfolio)'s portfolio included 95 stocks. The top holdings were 9.9% in Eli Lilly and Co (NYSE:LLY), 7% in UnitedHealth Group Inc (NYSE:UNH), 5.8% in AstraZeneca PLC (LSE:AZN), 4.73% in Merck & Co Inc (NYSE:MRK), and 3.64% in Novartis AG (XSWX:NOVN). The holdings are predominantly concentrated in three industries: Healthcare, Consumer Defensive, and Financial Services.
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