Netflix Surge Gives Growth Fund of America $500 Million Windfall
(Bloomberg) -- The $177 billion Growth Fund of America owns more shares of Netflix Inc. than any other mutual fund. That enviable position paid about half-a-billion dollars today.
Netflix, the world’s largest online TV network, jump more than 11 percent Tuesday morning after reporting that it signed up 8.33 million customers in the fourth quarter, surpassing analysts’ estimates for 6.34 million.
The Growth Fund, the largest U.S. active stock fund, held 22.5 million Netflix shares as of Dec. 31. That translates into a one-day gain of about $500 million. For the year, the fund’s windfall from Netflix is well over $1 billion -- and it’s only January 23.
The fund, run by Los Angeles-based Capital Group Cos., rose 7.3 percent in 2018 before today. Abbas Qasim, a spokesman for Capital Group, declined to comment.
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