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Replies to post #2056 on Spectrum Pharmaceutecals Inc (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.
PRIMECAP Management knows what we know.
Per their SCHEDULE 13G issued today they now own 5.63% of Spectrum. From their web site
Quote:
Objective - Long-term capital appreciation
The Fund invests mainly in stocks of U.S. companies, emphasizing those companies with prospects for rapid earnings growth. These stocks typically provide little current income. The Fund's portfolio consists predominantly of small- and mid-cap stocks.
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I'm debating if I consider them astute investors. I guess they are because they figured out what we already know. I'm glad us investors are in good company.
If you invested $10,000 with them on 11/1/04, on 12/31/17 it would have increased to $59,005. If you invested the same in the S&P 500, it would have increased to ~ half of that or $31,156. Not a shabby investment outcome I would think.
