Forbes
David Rolfe believes the market serves up far too many curveballs. With that the case, it’s best to limit aggressive choices.
The highly concentrated portfolio that Rolfe manages underscores his position. Twenty stocks compose the $424 million RiverPark/Wedgewood fund (RWGFX; expense ratio 1.25%). These are selections made from only high-conviction ideas: easy-to-hit pitches, that is.
“Ted Williams once said, If it’s not a strike don’t swing. It’s part of the business. There are no called strikes. You can leave the bat on your shoulders as long as you want,” says Rolfe.
Rolfe seems an undiscovered power-hitter. The fund is tiny, yet the performance suggests the possibility for bigger things. Launched 18 months ago, the fund has returned 40.6%, while the S&P 500 returned 33.4%. It broadly outperformed peers last year, gaining 5.6% as rivals lost an average 2.5%. The fund is up 19% this year—so far, another strong performance. It compares to an average 13% rise for peers.
RiverPark/Wedgewood is described as a large cap growth fund. Nonetheless, to earn these outsize returns, Rolfe combines tenets of both growth and value investing. An investor is greatly limited by sticking with only one strategy, he says. To be sure, it’s also a way to differentiate his fund from the multitude of available growth funds.
http://www.forbes.com/sites/abrambrown/2012/09/25/investors-will-starve-on-growth-stocks-alone/
Comments
http://www.riverparkfunds.com/Funds/Wedgewood/FullHoldings.aspx
I moved into this fund a few months ago to give my portfolio some growth exposure. Besides David's commentary, I looked through the "Wedgewood Insights" and liked the steadiness and consistency of their approach. So far, so good. I do think the expense ratio is a little high, but hopefully it will go down as assets increase.
David