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FYI: (Click On Article Title At Top Of Google Search) Giant money manager T. Rowe Price Group Inc. reported better earnings and mutual fund performance during the third quarter. Yet clients still pulled some money from the firm’s actively managed stock funds. Regards, Ted https://www.google.com/#q=T.+Rowe+Price+Profit+Rises+18%+wsj
Interesting... the stock price of TROW is trading at its lowest price in over a year. In fact, you have to go back to its 4 year low (Sept 2012) to match today's stock price. The stock is up 36% over the last ten years which included the 2009 great-cession.
Over the past 10 years TROW has more often out performed PRWCX, but that is not the case over the past year and half. (TROW in Yellow). Is TROW a good buy or is PRWCX about to correct?
Here's the most recent three performance of the two:
bee said, "Is TROW a good buy or is PRWCX about to correct?" @bee Wouldn't touch your question with a 10 foot pole - make that 15'
Here's a link back to TRP about the $194M write-off they took back in June after botching a proxy vote on Dell. https://www3.troweprice.com/usis/corporate/en/press/t--rowe-price-to-compensate-clients-for-dell-voting-error.html This received a lot of press (mostly favorable) back in June and was broadly lauded as testament to the firm's integrity and shareholder commitment. (I don't recall any discussion here.) But I'd imagine it impacted their share price. The WSJ appears to have more on this - but I have trouble reading it without a subscription, so didn't link them.
PRWCX, BTW, isn't having a particularly good year after several great ones. Manager has become very cautious on the market and is no doubt dealing with bloat - though it's now closed to new investors. If one wanted to have some fun with play money (assuming he/she held a favorable opinion of the firm) he might invest 50/50 in both the company and PRWCX and than rebalance periodically.
The future of T. Rowe? It's tough out there. They're small-fry compared to Vanguard, Blackrock and a few other giants. There's been a shift from actively managed funds to low cost passive funds and ETFs going on for many years now and I see no signs of it abating. Over the past year, if my reading of Barrons serves me well, Price experienced net outflows - though not as severe as Oppenheimer and some other active managers. I'd expect continued shrinkage or consolidation among companies in their segment of the market. ---
PS: Asset managers are to an extent subject to the whims of the markets. In a sharply declining equity market AUMs fall - reducing profits. This interplay between investors' and advisors' outlooks for equity markets and the re-pricing of asset managers like Price is far too complex for my feeble mind to understand. But it's not inconceivable that (future) market expectations are impacting TROW's valuation. (PRWCX would be expected to hold up better during a sharp correction than TROW.)
Comments
Over the past 10 years TROW has more often out performed PRWCX, but that is not the case over the past year and half. (TROW in Yellow). Is TROW a good buy or is PRWCX about to correct?
Here's the most recent three performance of the two:
@bee Wouldn't touch your question with a 10 foot pole - make that 15'
Here's a link back to TRP about the $194M write-off they took back in June after botching a proxy vote on Dell. https://www3.troweprice.com/usis/corporate/en/press/t--rowe-price-to-compensate-clients-for-dell-voting-error.html This received a lot of press (mostly favorable) back in June and was broadly lauded as testament to the firm's integrity and shareholder commitment. (I don't recall any discussion here.) But I'd imagine it impacted their share price. The WSJ appears to have more on this - but I have trouble reading it without a subscription, so didn't link them.
PRWCX, BTW, isn't having a particularly good year after several great ones. Manager has become very cautious on the market and is no doubt dealing with bloat - though it's now closed to new investors. If one wanted to have some fun with play money (assuming he/she held a favorable opinion of the firm) he might invest 50/50 in both the company and PRWCX and than rebalance periodically.
The future of T. Rowe? It's tough out there. They're small-fry compared to Vanguard, Blackrock and a few other giants. There's been a shift from actively managed funds to low cost passive funds and ETFs going on for many years now and I see no signs of it abating. Over the past year, if my reading of Barrons serves me well, Price experienced net outflows - though not as severe as Oppenheimer and some other active managers. I'd expect continued shrinkage or consolidation among companies in their segment of the market.
---
PS: Asset managers are to an extent subject to the whims of the markets. In a sharply declining equity market AUMs fall - reducing profits. This interplay between investors' and advisors' outlooks for equity markets and the re-pricing of asset managers like Price is far too complex for my feeble mind to understand. But it's not inconceivable that (future) market expectations are impacting TROW's valuation. (PRWCX would be expected to hold up better during a sharp correction than TROW.)