Mutual Fund Double Play: A Win on Celgene and No Losses on Apple

(Bloomberg) -- On a day when Celgene Corp. is soaring and Apple Inc. plunging, one mutual fund got both calls right.

The Edgewood Growth Fund at the end of October held 7.7 million shares of Celgene, which agreed Thursday to be acquired by Bristol-Myers Squibb Co. Shares of Celgene, a biotech firm, were up 26 percent at 10:34 a.m., making the fund a paper profit of about $140 million -- if it still holds the same number of shares.

The $11.9 billion fund, with a concentrated portfolio of 22 stocks, also avoided the pain from Apple’s fall. That makes it an outlier among large-cap growth funds -- Apple represents about 6 percent of the Russell 1000 Growth Index. The iPhone maker dropped 9.4 percent after saying disappointing sales in China would cause it to miss its fourth-quarter forecast for sales.

The mutual fund, run by a team of seven managers since 2006, has a strong track record. It returned 13 percent on average annually over the past five years compared with 8.7 percent for the S&P 500 Index, according to data compiled by Bloomberg. That was good enough to beat 98 percent of rivals.

New York-based Edgewood Management oversees $30.4 billion for individuals and institutions, according to its website. A spokesman for the firm, which was founded in 1974, declined to comment on performance.

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