Pfizer Inc. (PFE), Merck & Co., Inc. (MRK): Mid-Sized Hedgie Focusing On Big Pharma

Microsoft Corporation (NASDAQ:MSFT) is the last of the five largest holdings of RWC’s equity portfolio. Like the previous four mentioned, the fund has enlarged its equity in Microsoft to 528,047 shares, from 478,801 shares. The value of the stake also advanced to almost $15 million, from $12.8 million reported in the previous 13F. Recently, Microsoft Corporation (NASDAQ:MSFT) announced a debt offering of 550 million euro and $1.95 billion of senior unsecured notes. According to a statement issued by Microsoft Corporation (NASDAQ:MSFT), its revenue totalled $20.49 billion for the first three months of the year, up from $17.4 billion a year ago. The operating income of the company increased to $7.61 billion, from $6.4 billion in the first quarter of last year. Diluted EPS surged by 20% to $0.72 per share, and there’s obvious value here trading at a forward P/E below 11.0x.

Conclusion

This “fab five” indicates that RWC Asset Management put a lot of thought investing in large-cap companies, which are more likely to bring stable results over the intermediate-term, and big pharma has a key role. Year-to-date, the healthcare sector has already returned a whopping 18.4%, five full percentage points than any other sector of the economy. It’s easy to see why this hedgie is bullish on this space, and to learn more about why it’s crucial to track hedge funds, continue reading here.

Disclosure: none