Spectrum Pharmaceutecals Inc (SPPI)

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Barrons article excerpts on Primecap Management (and SPPI)

8:28 AM ET 2/12/18 | Dow Jones
By Ed Lin

Renowned stockpicker Primecap Management made some interesting trades at the end of January, days before the market went topsy-turvy like the carousel in Strangers on a Train after the brake was applied.

The fund manager sold positions in Eli Lilly (ticker: LLY), Rambus (RMBS) and tronc (TRNC) while lifting stakes in Spectrum Pharmaceuticals (SPPI) and United Continental Holdings (UAL).

…..Spectrum shares more than quadrupled in 2017, rising 328% on upbeat study data for a lung-cancer treatment. The biotech has managed to hold on to some gains made so far in 2018 that the market turmoil hasn't ripped away; shares are up 6.4%. Primecap bought about 1.7 million more shares, raising its investment to 5.7 million Spectrum shares, a 5.6% stake, at Jan. 31, up from four million shares, or 4% stake.

…..We tried a few years ago to interview the publicity-averse Primecap for a feature. They declined. "From the start, [Primecap] eschewed the press, believing the best ideas belonged to their clients," we noted.

"Managing equity investment portfolios is Primecap Management Company's only business," the company states on its site. "The firm is dedicated to a single goal: to provide superior long-term equity returns to its clients." It should be interesting to see how Spectrum and United perform months and maybe years from this turbulent time.