uploads///Portfolio Breakdown of the OLGAX

What Moves Did OLGAX Make Leading Up to 1Q16?


Apr. 25 2016, Published 4:03 p.m. ET

JPMorgan Large Cap Growth Fund

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 fund’s investment process encompasses research, stock selection, and risk management, leading 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 70 holdings (stocks, bonds, and cash) as of March 2016, three more than a quarter ago. It was managing assets worth $14.7 billion as of March’s end.

Article continues below advertisement

As of its February portfolio, its equity holdings included Home Depot (HD), Comcast (CMCSA), Delta Air Lines (DAL), Broadcom (AVGO), and the Sherwin-Williams Company (SHW). These companies made up a combined 14.4% of the fund’s portfolio. The fund is quite top-heavy, with its top ten holdings forming ~40% of its assets.

Historical portfolios

For our analysis, we’ll be considering OLGAX’s holdings as of February 2016, as that is its latest available sectoral breakdown. The fund’s holdings post-February reflect valuation-driven changes to its portfolio, not its actual holdings.

The information technology, consumer discretionary, healthcare, and consumer staples sectors are the core sectors in which OLGAX invests. The first two sectors form nearly 60% of its portfolio, while the last two combined form slightly more than one-fifth of its portfolio. The fund’s management hasn’t invested in the telecommunications services or utilities sectors.

Compared to the Russell 1000 Growth Index, the fund is overweight in the information technology and materials sectors and underweight in the financials, healthcare, and industrials sectors.

Over the course of the past year, the fund’s management has increased its exposure to the information technology and consumer staples sectors. At the same time, management has sharply reduced the fund’s exposure to the energy, financials, and healthcare sectors.

Fund managers have not churned the portfolio much, which means that they’ve stayed with many of their holdings rather than indulging in frequent buying and selling.

Has this portfolio composition helped the fund’s performance in 1Q16? Let’s look at that in the next article.


More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.