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PRIMECAP Odyssey Aggressive Growth Fund re-opening to new investors (Here's your chance to get in!)

TheShadowTheShadow
edited December 2022 in Fund Discussions
https://www.sec.gov/Archives/edgar/data/1293967/000089418922008956/primecapsupplement-opening.htm

497 1 primecapsupplement-opening.htm 497

PRIMECAP ODYSSEY FUNDS

PRIMECAP ODYSSEY AGGRESSIVE GROWTH FUND
SUPPLEMENT DATED DECEMBER 14, 2022 TO THE
SUMMARY PROSPECTUS AND PROSPECTUS DATED FEBRUARY 28, 2022



The Board of Trustees of the PRIMECAP Odyssey Funds has approved the opening of the PRIMECAP Odyssey Aggressive Growth Fund for sale to all investors, effective as of December 15, 2022. Based on a recommendation by PRIMECAP Management Company, the Board of Trustees has discretion to close the PRIMECAP Odyssey Aggressive Growth Fund at any time. All references to the PRIMECAP Odyssey Aggressive Growth Fund being closed to most new investors are hereby deleted from the Summary Prospectus and Prospectus.


* * * * *

Please retain this supplement for your reference.

Comments

  • LewisBraham
    edited December 2022
    I am a fan of this fund shop and this fund, but I have to say its large position in Tesla, which had and still has nosebleed valuations, gives me pause.
  • sma3
    beats BPTRX though! Last time I checked good ol' Ronny boy had 52% TSLA in BPTRX
  • AZRph
    Consider GQEPX. Meh for me on POGRX.
  • LewisBraham
    I think it is POAGX that is re-opening here, not POGRX. GQEPX has done well, which leads me to believe it may lag soon if we go from bearish to bull, but it is a good defensive fund.
  • Observant1
    Primecap is an admirable fund firm.
    They've generated excellent long-term returns managing several Vanguard mutual funds.
    POAGX is a tad too aggressive for me.
    I prefer VPMAX and VPCCX instead but they are closed to most new investors.
  • sfnative
    The Primecap funds have certainly endured a few years of bad luck -- POAGX in particular was perfectly positioned to crater when covid struck as it had outsized stakes in things like airlines and cruise lines. Yet the fund is idiosyncratic, that's for sure. All three of the funds have seen significant redemptions, resulting in large capital gains distributions for several years (worsening tax-adjusted performance). Anyone considering a new investment should take a look at the portfolio and be comfortable with the huge chunk of biotech and pharmaceuticals in there. It's almost a healthcare fund.
  • Observant1
    edited December 2022
    sfnative said:

    The Primecap funds have certainly endured a few years of bad luck -- POAGX in particular was perfectly positioned to crater when covid struck as it had outsized stakes in things like airlines and cruise lines. Yet the fund is idiosyncratic, that's for sure. All three of the funds have seen significant redemptions, resulting in large capital gains distributions for several years (worsening tax-adjusted performance). Anyone considering a new investment should take a look at the portfolio and be comfortable with the huge chunk of biotech and pharmaceuticals in there. It's almost a healthcare fund.


    You bring up some very good points.
    Primecap is a benchmark-agnostic firm and tends to favor certain industries.
    The following data was gleaned from M* reports published July 2022.

    POAGX: ~20% in biotech/pharma, ~13% in semis
    VPMAX: ~20% in biotech/pharma, ~13% in semis
    VPCCX: ~18% in biotech/pharma, ~11% in semis

    Primecap-managed funds may underperform common benchmarks for several consecutive calendar years.
    Investors should be prepared for this possibility.

    POAGX: lagged Russell Mid-Cap Growth from 2018 - 2021
    VPMAX: lagged Russell 1000 and S&P 500 from 2019 - 2021
    VPCCX: lagged Russell 1000 and S&P 500 from 2018 - 2021

    All three funds had top-decile 10 Yr. and 15 Yr. fund category returns through 11/30/2022.

    Primecap-managed funds can generate large capital gains distributions
    and are best held in tax-deferred or tax-exempt accounts.

  • beebee
    edited December 2022
    I have own this fund Long term... off nearly 20% YTD... 10% of my portfolio.

    So here the deal. Buy into this fund a little at a time and monitor its performance. It has under performed for the last 5 years so pay close attention. If its performance reverts to it's 10 and 15 year performance you will be in a good position long term.

    On a one year basis, I would suggest PRNHX in a better fund to take advantage of the '22 swoon.

    My question for buyers, when have we bottomed?

    The financial markets still seem attached at the hip with the Fed so until they stop raising rates we will just attempt at guessing how far prices will revert.
  • Old_JoeOld_Joe
    That sounds right to me.
  • TheShadowTheShadow
    Unfortunately, PRNHX is closed to new investors unless you are a "summit" investor.

    https://www.troweprice.com/personal-investing/tools/fund-research/PRNHX

  • beebee
    edited December 2022
    TheShadow said:

    Unfortunately, PRNHX is closed to new investors unless you are a "summit" investor.

    https://www.troweprice.com/personal-investing/tools/fund-research/PRNHX

    May it re-opens much like POAGX has.
  • Sven
    Agree. Many funds are having sizable redemption not only from a bad year, but other are finding ETFs are viable options. PRNHX is down over 30% YTD.

    In smaller cap space, I still prefer active managed funds over indexing.
  • Guy
    Oh my gosh! It has happened! I've been waiting years for this moment! Thank you so much for the heads up Shadow!
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