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I revisited the conference call and looked through it's holdings; I found a lot to like. The assets increased dramatically since the call David moderated. Anyone still own it? and your thoughts are appreciated. Thanks.
I bought it ~2.5y ago because I pay very close attention to anything that catches DS's eye, like so many here. In a practice I am increasingly trying to avoid in retirement (and succeeding with since), I bailed out of it after a couple years because it was doing fine but not anything consistently better (reward or risk) than my 2-3-4 big holdings, PRBLX, FLPSX, YAFFX (yes, I know the categories are not the same). I'm trying to reduce and simplify. Subsequent performance has attested to the wisdom of my decision (the dumbest conclusion an investor can draw most of the time), and I did add some moneys into RGHVX since I wanted to continue with the nominal shop.
Thanks Charles and David for your comments. I have owned several individual holdings of RWGFX for many years and very happy with it. Recently trying to shift more investment allocation to mutual fund or separate account to reduce the stress and time required for monitoring individual stocks. RWGFX seems a good choice.
I've held this fund for a year or two now. No complaints. Read the managers' commentaries on the Wedgewood Partners website -- I think that is the best way to see if their philosophy is a fit for you.
I owned RWGFX in my Roth IRA. Switched the entire position last year to River Park Large Growth (RPXFX), managed by Mitch Rubin. I prefer a fund with a small asset base (58 mil), especially given the sudden in-flows into RWGFX. RWGFX is very concentrated.
I prefer a fund with a small asset base (58 mil), especially given the sudden in-flows into RWGFX. RWGFX is very concentrated.
I don't think asset base is as much of an issue for large cap funds. According to Morningstar, RWGFX has $1.5 billion under management, concentrated in around 20 stocks, meaning they put an average of $75 million in each holding.
That might sound like a lot, but consider that the average market cap of their holdings is over $58 billion. That means that if they put $75 million in each of their 20 holdings, each one would represents only an average of 0.1% of that company's outstanding stock. That doesn't seem too much that it significantly move the needle, given the huge size and trading volume of these companies.
By contrast, FAIRX has over $8 billion under management, spread over only 9 holdings. Now that might be a little scary.
I owned RWGFX in my Roth IRA. Switched the entire position last year to River Park Large Growth (RPXFX), managed by Mitch Rubin.
RPXFX has done pretty well, with roughly the same performance as RWGFX although the portfolio is quite different. But what about RiverPark's Small Cap Fund, which was also managed by Mitch Rubin? Its performance was terrible and the fund ended up closing.
Ideally I would want a fund that is not too large, but also not too small to be unsustainable. RPXFX performance is similar to RWGFX, but has fallen way behind in attracting assets for some reason. I don't think its in danger of closing, but I'm sure the managers would prefer to be in at least the $100m+ range. And as I mentioned in my other post, a large cap fund can easily have billions in assets without noticeably affecting its strategy.
Comments
RiverPark/Wedgewood
Here's link to David's profile:
RiverPark/Wedgewood (RWGFX) – September 2011
That might sound like a lot, but consider that the average market cap of their holdings is over $58 billion. That means that if they put $75 million in each of their 20 holdings, each one would represents only an average of 0.1% of that company's outstanding stock. That doesn't seem too much that it significantly move the needle, given the huge size and trading volume of these companies.
By contrast, FAIRX has over $8 billion under management, spread over only 9 holdings. Now that might be a little scary.
Ideally I would want a fund that is not too large, but also not too small to be unsustainable. RPXFX performance is similar to RWGFX, but has fallen way behind in attracting assets for some reason. I don't think its in danger of closing, but I'm sure the managers would prefer to be in at least the $100m+ range. And as I mentioned in my other post, a large cap fund can easily have billions in assets without noticeably affecting its strategy.