Friday, February 14, 2014

Capital World Entities Reduce Stake To 2009 Levels (~5.8%), After Two Years As A Steady 6.4% Merck Holder

Okay. See and click -- at right.

Not terrible, in the grand scheme of things, but it may indicate that Merck was approaching "fully-valued" status (in the portfolio managers' view) toward year end 2013, and so the Capital World entities took a little off the table, and booked some gains -- for the beneficial owners -- as a Christmas present. Note that at near year end 2013, Merck was trading just shy of $50 per share -- and so, when compared to year end 2012 (i.e., higher share counts; but lower average NYSE prices) -- the net dollars invested in Merck works out in both years to be right around $8.5 billion.

So -- as I say -- not terrible news.

We will see whether the actual share-count reduction is only temporary -- or more permanent -- by this time next year. So stay tuned. The graphic really tells the whole story -- so I'll fall silent now. Next up? Wellington Management. Two minutes to make a graphic.

For those interested in the process of the sausage making -- here is Capital World's SEC Schedule 13G filing, in full -- as deposited this morning at the online EDGAR filing window.

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