PRU

SEC Filing Summary: Prudential Financial Inc. (13F-HR)

Business Context and Reporting Period

Reporting Manager: Prudential Financial, Inc.
Filing Type: Form 13F-HR (Holdings Report)
Reporting Period: Quarter ended March 31, 2007
Submission Date: May 10, 2007
Scope: This report details the equity securities held by Prudential Financial and three other included managers (Prudential Investment Management, Inc., Quantitative Management Associates, and Prudential Bache Securities, LLC) over which the reporting manager exercises investment discretion.

Key Financial Metrics

Total Portfolio Value: $46,554,260,000
Total Number of Holdings: 2,580 entries
Number of Included Managers: 3
Asset Class: Primarily U.S. and non-U.S. equity securities (Common Stock, ADRs, and preferred shares).
Derivatives: The filing includes limited positions in Call and Put options (e.g., Archer Daniels Midland, CBS Corp, General Electric, McDonald's Corp).

Material Changes and Portfolio Composition

Top Holdings by Value (Selected):

• General Electric Co: ~$28.2 billion (998,891 shares)
• Microsoft Corp: ~$28.4 billion (790,482 shares)
• Exxon Mobil Corp: ~$19.1 billion (1,438,926 shares)
• Johnson & Johnson: ~$9.7 billion (586,902 shares)
• Wells Fargo & Co: ~$11.6 billion (401,048 shares)
• Wal-Mart Stores Inc: ~$7.2 billion (338,089 shares)
• Time Warner Inc: ~$8.8 billion (173,140 shares)
• United Technologies Corp: ~$2.9 billion (190,586 shares)

Notable Activity: The portfolio reflects a diversified mix across sectors including Technology, Energy, Financials, Healthcare, and Consumer Staples. Significant positions are held in large-cap blue-chip equities. The filing lists specific voting authority (Sole, Shared, or None) for each position, indicating active engagement in corporate governance for many holdings.

Guidance, Outlook, and Risks

Management Commentary: Form 13F filings are statutory disclosures of holdings and do not contain management commentary, earnings guidance, or forward-looking outlooks regarding the reporting manager's own financial performance.
Risks and Contingencies: The filing does not disclose specific risk factors or contingencies. However, the sheer size of the portfolio ($46.5 billion) and the concentration in large-cap equities imply exposure to broad market volatility, sector-specific downturns, and interest rate sensitivity.

Key Facts for Investor Verification

• Portfolio Concentration: Verify the top 10 holdings to understand the concentration risk; the top few positions (GE, Microsoft, Exxon) represent a significant portion of the total $46.5 billion value.
• Manager Attribution: Confirm which specific subsidiary (Prudential Investment Management, Quantitative Management Associates, or Prudential Bache Securities) manages specific high-conviction positions, as discretion is split among the included managers.
• Derivative Exposure: Review the specific Call and Put option positions (e.g., McDonald's, General Electric) to understand any hedging strategies or directional bets not evident in the common stock holdings.
• Voting Authority: Note the distinction between "Sole" and "Shared" voting authority, which may indicate co-investment arrangements or fund-of-fund structures for certain securities.