FYI: (The Linkster has always favored funds with a single manager, you know 'to many cooks", but in this case you've must give the devil its do.) If you manage $28 billion in client money, you may find it hard to beat benchmark indexes because of the sheer scale of investments you must buy.
That’s why some fund-management firms have started “index-plus” funds, which essentially replicate the benchmarks for most of their holdings. The secret sauce is stock selection around the edges in an attempt to outperform the benchmark but, more importantly, never underperform.
T. Rowe Price Group’s TROW, -2.04% version of such a fund is the $720 million T. Rowe Price Capital Opportunity Fund PRCOX, +0.89% overseen by Ann Holcomb and three other portfolio managers. In an interview July 24, she explained that a total of $28 billion is managed, mostly for institutional clients, using the fund’s “index-plus” strategy.
Regards,
Ted
https://www.marketwatch.com/story/these-four-fund-managers-and-30-analysts-figured-out-how-to-consistently-beat-the-sp-500-2018-07-26/printM* Snapshot PRCOX:
https://www.morningstar.com/funds/xnas/prcox/quote.htmlPRCOX Is Ranked #18 In The (LCB) Fund Category By U.S. News & World Report:
https://money.usnews.com/funds/mutual-funds/large-blend/t-rowe-price-capital-opportunity-fund/prcox
Comments
But it's trailing returns are much better...beating the S&P 500 TR for all time frames:
... and then there's PRWCX which edges PRCOX out a tad over the longer term and lost less during the '08 GFC. Still both are solid funds! (I own PRWCX)
I did compare PRCOX to a LCB fund I own (PARWX) which navigated '08 GFC much like PRWCX...down -29%, but then rocketed 62% on '09. PARWX tends to be an all equity fund with 31 holdings at present, half of these identified as Large and Mid Cap Value.
US News isn't kind to the fund ranking it 65th (PRCOX is 18th)
Admitly, PRCOX has out performed PARWX over the last year, but PARWX 3,5, & 10 year are as solid as it gets.