Yahoo Finance Harbor Capital Appreciation Fund's Strategic Moves in Q2 2024: Spotlight on UnitedHealth Group Inc
Insightful Portfolio Adjustments Reflect a Focused Investment Strategy
Harbor Capital Appreciation Fund (Trades, Portfolio), managed by Jennison Associates LLC, continues to demonstrate a keen eye for growth and value in the second quarter of 2024. Under the guidance of the late Spiros Segalas until January 2023, the fund has been known for its strategic investments in companies with strong potential for sustainable competitive advantages. The fund's investment philosophy emphasizes long-term growth, focusing on disruptive technologies, new product cycles, and expanding markets. It prioritizes companies with robust financial health and appropriate valuations, ensuring a balanced approach to capital appreciation.
New Additions to the Portfolio
During this quarter, Harbor Capital Appreciation Fund (Trades, Portfolio) expanded its portfolio by adding five new stocks. Noteworthy among them are:
The Walt Disney Co (NYSE:DIS), with 2,421,421 shares, making up 1% of the portfolio and valued at $269 million.
Eaton Corp PLC (NYSE:ETN), comprising 710,836 shares, which represent about 0.84% of the portfolio, with a total value of $226 million.
Datadog Inc (NASDAQ:DDOG), with 1,094,683 shares, accounting for 0.51% of the portfolio and valued at $137 million.
Significant Increases in Existing Positions
The fund also increased its stakes in 15 stocks, with significant boosts in:
Broadcom Inc (NASDAQ:AVGO), adding 213,375 shares to bring the total to 887,531 shares. This adjustment increased the share count by 31.65%, impacting the portfolio by 1.03%, and bringing the total value to $1.15 billion.
Airbnb Inc (NASDAQ:ABNB), with an additional 1,141,071 shares, bringing the total to 2,394,598 shares. This represents a 91.03% increase in share count, valued at $380 million.
Complete Exits from Certain Holdings
The fund decided to exit completely from four holdings in this quarter, including:
UnitedHealth Group Inc (NYSE:UNH), where all 844,497 shares were sold, impacting the portfolio by -1.61%.
ARM Holdings PLC (NASDAQ:ARM), with all 1,661,153 shares liquidated, causing a -0.44% impact on the portfolio.
Reductions in Key Positions
Adjustments were also made to reduce positions in 32 stocks. The most significant reductions were seen in:
Alphabet Inc (NASDAQ:GOOG), with a reduction of 1,346,658 shares, resulting in a -30.2% decrease and a -0.71% portfolio impact. The stock traded at an average price of $148.97 during the quarter.
Alphabet Inc (NASDAQ:GOOGL), reduced by 1,349,377 shares, marking a -30.1% decrease and a -0.7% impact on the portfolio. The stock's average trading price was $147.68 during the quarter.
Portfolio Overview and Sector Allocation
As of the second quarter of 2024, Harbor Capital Appreciation Fund (Trades, Portfolio)'s portfolio included 52 stocks. The top holdings were 9% in NVIDIA Corp (NASDAQ:NVDA), 8.56% in Amazon.com Inc (NASDAQ:AMZN), and 8.14% in Microsoft Corp (NASDAQ:MSFT). Other significant holdings included Meta Platforms Inc (NASDAQ:META) and Eli Lilly and Co (NYSE:LLY). The fund's investments are primarily concentrated in eight industries: Technology, Consumer Cyclical, Communication Services, Healthcare, Financial Services, Consumer Defensive, Industrials, and Real Estate.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
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