2 Funds With Plenty To Tweet About
Shares of Twitter Inc (NYSE: TWTR) were never able to take wing on the first trading day of the fourth quarter. The stock sputtered 6.47 percent on news that top executives, including CEO Dick Costolo and co-founders Jack Dorsey and Ev Williams, had unloaded nearly $50 million in stock throughout November.
Given that the company's market capitalization is around $24.77 billion, that selling didn't make much of a dent. In fact, Twitter actually posted a small gain for the month of November.
However, with several top executives selling simultaneously, other investors understandably worried about the message being sent.
Nearly 800 U.S. mutual funds and hedge funds own Twitter shares. As a high-profile IPO in late 2013, it was one of those “must haves” for many fund managers.
Berkshire Focus Fund
Twitter accounts for 6.88 percent of the Berkshire Focus Fund (MUTF: BFOCX). This fund selects stocks that the managers believe have high potential for long-term growth, with a focus on info tech. There are no market cap or geographic constraints.
The fund's recent performance has been lackluster, with a year-to-date total return of just 1.57 percent. Over time, growth stocks tend to underperform value, but growth stocks are typically the newer, more exciting names.
For example, other top holdings in the Berkshire Focus fund include Facebook Inc and Alibaba Group Holding Ltd.
T. Rowe Price Growth Stock Fund
In terms of the fund owning the highest number of Twitter shares, that honor goes to the T. Rowe Price Growth Stock Fund (MUTF: PRGFX), which holds 0.24 percent of the company's shares. That totals 1.23 percent of fund assets.
This fund invests in more established growth companies, with sound fundamentals. A look at some of the top holdings illustrates the difference between its investments and those of the Berkshire Focus fund:
- Amazon.com, Inc.
- American Tower Corp
- Biogen Idec Inc
- Crown Castle International Corp.
- Gilead Sciences, Inc.
The T. Rowe Price Growth Fund has returned 8.12 percent year to date.
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