FYI: June 7, 2018
Regards,
Ted
Dear WEALTHTRACK Subscriber,
It’s the final week of the spring fund raising season for Public Television, so we are revisiting a recent rare and very popular interview from two-time Morningstar Manager of the Year awardee, David Giroux.
Giroux is Portfolio Manager and Chairman of the Investment Advisory Committee of T. Rowe Price Capital Appreciation Fund which is a Morningstar gold medalist and carries a five star rating. Giroux was named Morningstar’s Allocation and Alternatives Fund Manager of the Year in 2017, the second time he was so honored. The first was in 2012 for the inaugural Morningstar Allocation Fund Manager of the Year Award.
Morningstar cited Giroux’s “savvy allocation decisions and disciplined approach” which have “paved the way to the fund’s 9.2% annualized gain during his tenure, which began in 2006.” That performance was 3.6 percentage points a year better than its typical category peer. But as you will discover from this discussion, beating a benchmark or category is not what Giroux and his capital appreciation fund team are all about, although it is one of the reasons the fund had to close to new investors in 2014.
The fund has three goals: generate strong risk-adjusted returns annually;
preserve shareholder capital over the intermediate term (i.e., 3 years); and
generate equity- like returns with less risk than that of the overall market over a full market cycle (i.e., normally five years). So far, during Giroux’s tenure, those goals have been achieved.
He will explain how he plans to achieve them in the future, especially given the high valuations in the stock and bond markets.
New on the website this week, influential strategist Jason Trennert weighs in on the passive versus active investing debate. Also online, you’ll find our exclusive EXTRA feature with David Giroux about joining T. Rowe Price right out of college and never looking back.
As always, thank you for watching, enjoy the weekend, and make the week ahead a profitable and a productive one.
Best regards,
Consuelo
M* Snapshot PRWCX:
http://www.morningstar.com/funds/xnas/prwcx/quote.htmlLipper Snapshot PRWCX:
https://www.marketwatch.com/investing/fund/prwcxPRWCX Is Ranked #20 In The (50-70 E) Fund Category By U. S. News & World Report:
https://money.usnews.com/funds/mutual-funds/allocation-50-to-70-equity/t-rowe-price-capital-appreciation-fund/prwcx 
