Insight into the Fund's Latest Portfolio Adjustments and Key Stock Performances

Vanguard Health Care Fund (Trades, Portfolio), managed by Wellington Management Company since 1984, continues to target long-term capital appreciation through investments in the healthcare sector. Under the leadership of Jean M. Hynes, the fund emphasizes a contrarian investment approach, focusing on companies with robust financials and strong management teams poised for growth. This strategy includes investing across diverse healthcare subsectors and reacting to market shifts to capitalize on potential opportunities.

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Summary of New Buys

Vanguard Health Care Fund (Trades, Portfolio) expanded its portfolio by adding four new stocks in the third quarter of 2024. Noteworthy new positions include:

• Charles River Laboratories International Inc (NYSE:CRL) with 1,871,658 shares, making up 0.77% of the portfolio, valued at $368.66 million.
• DexCom Inc (NASDAQ:DXCM), comprising 3,951,079 shares or approximately 0.56% of the portfolio, with a total value of $264.88 million.
• Glaukos Corp (NYSE:GKOS) with 849,153 shares, accounting for 0.23% of the portfolio, valued at $110.63 million.

Key Position Increases

The fund also significantly increased its stakes in several existing holdings:

• Novo Nordisk AS (NYSE:NVO) saw an addition of 4,919,648 shares, bringing the total to 16,015,062 shares. This adjustment increased the share count by 44.34% and impacted the portfolio by 1.23%, with a total value of $1.90 billion.
• Edwards Lifesciences Corp (NYSE:EW) with an additional 5,969,482 shares, bringing the total to 15,371,824 shares. This represents a 63.49% increase in share count, valued at $1.01 billion.

Summary of Sold Out Positions

The fund exited nine positions entirely during this quarter, including:

• IQVIA Holdings Inc (NYSE:IQV), where all 1,600,147 shares were sold, impacting the portfolio by -0.73%.
• Labcorp Holdings Inc (NYSE:LH), with all 1,381,908 shares liquidated, causing a -0.6% impact on the portfolio.

Key Position Reductions

Significant reductions were made in 19 stocks, with the most notable being:

• Zoetis Inc (NYSE:ZTS), where 3,559,860 shares were sold off, resulting in an 86.07% decrease in shares and a -1.33% impact on the portfolio. The stock traded at an average price of $184.26 during the quarter and has seen a -6.13% return over the past three months and -9.73% year-to-date.
• Regeneron Pharmaceuticals Inc (NASDAQ:REGN) reduced by 425,744 shares, marking a 63.01% reduction and a -0.96% impact on the portfolio. The stock's average trading price was $1,112.86 during the quarter, with a -30.47% return over the past three months and -8.30% year-to-date.

Portfolio Overview

As of the third quarter of 2024, Vanguard Health Care Fund (Trades, Portfolio)'s portfolio included 90 stocks. The top holdings were 8.76% in Eli Lilly and Co (NYSE:LLY), 7.79% in UnitedHealth Group Inc (NYSE:UNH), 5.77% in AstraZeneca PLC (LSE:AZN), 4.59% in Merck & Co Inc (NYSE:MRK), and 3.99% in Novo Nordisk AS (NYSE:NVO). The holdings are primarily concentrated in the Healthcare and Financial Services sectors.

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.

This article first appeared on GuruFocus.