Wellington Management: Analyzing Its Top Holdings

Wellington Management filed its 13F on Wednesday. Based on the filing, the market value of total publicly traded securities was around $443.45 billion. At the end of the third quarter of 2018, the figure was $474.88 billion. In the second quarter, Wellington Management’s total value of publicly traded securities was around $451.69 billion.

Wellington Management: Analyzing Its Top Holdings

Top buys

At the end of the third quarter, Medtronic (MDT), Eli Lilly (LLY), Alphabet (GOOGL), United Technologies (UTX), and CVS (CVS) were Wellington Management’s top five buys. Sequentially, the investment firm increased its holdings in these stocks by approximately 27, 22, 20, 17, and 17 basis points, respectively. The hedge fund also bought a fresh stake in Cable One, Fiserv (FISV), and Peloton Interactive (PTON). 

So far in 2019, Medtronic has risen 19.8%. The Health Care Select Sector SPDR ETF (XLV) has risen 10.3% during the same period. Medtronic is XLV’s fifth-largest holding. Notably, XLV tracks the US healthcare industry.

Although Medtronic is headquartered in Ireland, the US is an important market for the company. Read What Is Medtronic Guiding for Its Business Segments in 2020? to learn more.

Wellington’s top holdings

At the end of the third quarter, Microsoft (MSFT), Medtronic, Verizon Communications (VZ), Bank of America (BAC), and JPMorgan Chase (JPM) were Wellington Management’s top holdings. The stocks accounted for around 2.3%, 1.8%, 1.6%, 1.5%, and 1.5% of the hedge fund’s total portfolio of publicly traded securities. Microsoft has been the firm’s top holding since the second quarter of 2018.

Since the first quarter of 2018, the fund has been reducing its exposure to Microsoft. On a sequential basis in the third quarter, Wellington Management sold 3.7 million Microsoft stocks. In the same quarter, BlackRock Fund Advisors and The California Public Employees bought 3 million and 4 million Microsoft shares, respectively. The Vanguard Group is Microsoft’s largest institutional investor with around 602.1 million stocks.

Around 93% of the analysts tracking Microsoft recommend a “buy” or “strong-buy,” according to Reuters data as of today. The remaining analysts have a “hold” recommendation on the stock. None of the analysts have a “sell” recommendation on the stock.

Like Wellington Management, Bank of America was among Berkshire Hathaway’s top holdings. To learn more, read How Bank of America Became Buffett’s Berkshire Jewel.

Top sells

In the third quarter, Wellington Management’s top five sells were Allergan (AGN), Amazon (AMZN), UnitedHealth (UNH), American Tower (AMT), and Netflix (NFLX). The firm reduced its holdings in these securities by approximately 78, 24, 18, 17, and 17 basis points, respectively. In contrast, investors like Mark Cuban are bullish on Amazon stock. Berkshire Hathaway included Amazon in the first quarter. Notably, Amazon has risen 16.7% year-to-date. 

On the other hand, Netflix has risen just 5.8% during this period. Barclays expressed concerns about the company’s valuation. To learn more, read Netflix Fell 30%: Barclays Said It’s Still Very Expensive.