The JPMorgan Large Cap Growth Fund Class A (OLGAX) rose by 7.1% in October 2015 over the previous month. In the three- and six-month periods ending on October 30, the fund fell by 3.7% and rose by 2.1%, respectively. In the YTD (year-to-date) period, the fund was up by 7.2%, while in the one-year period, it rose by 8.6%. From the end of October until November 19, the fund was up by 1.3%—the second-highest rise among the nine funds in this review.
But the one- and three-month periods ending in October 2015 were not good for OLGAX. Its performance in these periods places it among the bottom of the pack. However, for the remaining periods, the fund did better and placed among the top four funds in each.
Let’s look at what contributed to this performance by the fund.
Portfolio composition and contribution to returns
OLGAX has witnessed several market cycles, having been launched in February 1994. The latest complete portfolio available for the fund is as of September 2015. Hence, for our analysis, we’ll take that portfolio as our base and consider valuation changes as they stood at the end of October 2015. All portfolio percentages mentioned from here on refer to weights according to changes in valuation between September and October.
The information technology sector was the biggest contributor to the fund’s returns for the one-year period ending in October 2015. It was led up by Facebook (FB), Class C shares of Alphabet (GOOG), and Visa (V). However, Baidu (BIDU) dragged down the positive contributions.
The consumer discretionary sector was just behind information technology in terms of the quantum of positive contributions. Amazon.com (AMZN) and Home Depot (HD) were primarily responsible for the quantum of contributions from the sector. Had it not been for the negative contributions from Michael Kors Holdings (KORS) and Twenty-First Century Fox (FOXA), the sector’s contribution could have superseded that of information technology.
The materials sector, a negative contributor to returns of other funds in this review, was actually a positive contributor for the OLGAX led by Sherwin-Williams Company (SHW).
Reasons driving performance
OLGAX did well in the one-year period ending in October 2015, ranking fourth among our nine funds. Its core sectors helped it post strong returns. However, a few stock picks from each sector dragged down the fund in good measure, and this was the primary reason holding back higher overall returns.
In the next part of this series, we’ll look at the ClearBridge Aggressive Growth Fund Class A (SHRAX).