giroux brief pod

a2z

not much new here, but i find it very re-assuring when he takes a confident stand such as anti-tsla, which trp most certainly holds in some funds.
this is not your typical trader\manager that capitulates on logic simply because some price goes up and stays elevated longer than expected.
momentum likely plays a minor role for giroux only during large block trading, where these houses have dedicated specialists.

am glad to pay slightly higher fees for such a mindset, especially GARP which i find tricky on individual names. i see giroux more now as a conservative but opportunistic asset allocater rather than stock picker. i have traded prwcx for prcfx in all ret holdings, and elsewhere w/min tax gains.

https://www.bloomberg.com/news/audio/2025-08-06/inside-active-t-rowe-s-giroux-on-avoiding-fatally-flawed-firms

Crash

I'll give it a listen this morning. Giroux is the Master. I have kept PRWCX at a hair over 40% of total, and added PRCFX at about 14% of total. Yes, surely there is overlap, but I wanted to take advantage of his knowledge and acumen while owning more bonds to reduce risk, overall.... 54% of my total with one guy? De-risk-ing? Some might tell me: "not hardly!" .....I know. I know.

Giroux's funds are 2 of 5 mutual funds we own. Two are junk bond funds. Wife is in BALFX, another balanced fund--- doing nicely for her. Today and yesterday, I'm particularly glad I threw money into those particular 3 single stocks that we own. Together, they are 18.03% of total.

YTD PRWCX +8.46%
PRCFX +7.2
nice. Amid all the craziness and Orange turmoil.

EDIT TO ADD:
His counter-intuitive, counter-cyclical strategy makes great sense. Very Buffett-ish.

larryB

Without intending to cast the great Giroux in any kind of negative light I have been following TCAF since its inception and it is too aggressive for this old guy. Using data from M* this morning TCAF has a higher PE than VOO,,,, a much higher allocation to TECH and much higher concentration of money invested in its top ten holdings. Seems to be a very aggressive holding given everything going on in the markets, the economy and dare I say,,, the state of affairs . And it’s not beating VOO YTD and trails the under the radar CGDV by a not insignificant 6.23%.

dily

CGDV may not be discussed as much as Giroux’s funds, but I would hardly call it under the radar. It has more than $20B in AUM already. I hold quite a bit of both PRWCX and CGDV. Do not have any interest in TCAF for same reasons LarryB so eloquently stated.

Sven

a2z said:

i now see giroux more now as a conservative but opportunistic asset allocater rather than stock picker.

I agree. Very opportunistic is a good description of his approach. As an example, he started buying utility stocks as a “pick and shovel” approach so to enable AI uses (data centers) while these stocks are cheap.

Like to learn more about the bond team and their strategies.

hank

Just looking at a few other funds in PRWCX’s league - perhaps not as good:

From M* 15 year average annual return:
PRWCX 11.96%
GLFOX 10.98%
DODBX 10.24%

10 years
PRWCX 10.86%
GLFOX 9.30%
DODBX 8.76%

5 years
PRWCX 10.94%
DODBX 10.71%
CPLSX 10.42%
GLFOX 10.24%

I’ve owned all 4 over the years. CPLSX, the only one I currently hold, is 9 years old. Surprising, has held its own among this distinguished crowd over that time. It’s a long/short fund with a substantially higher cost. Perhaps a safer bet for us ”late middle-aged” folks. Inception April 2016 / 8% average annual return since.

DavidF

Giroux feels strongly that vast majority (not all) of Trump tariffs will be declared unconstitutional by courts. How will markets react to that if/when it happens?

a2z

giroux is probably correct on rulings but incorrect on net effect. trump has many paths to tariffs. as long as the gop support grift without repercussions, one should assume delays and rulings will ensure stays for the remaining 4 years.
there is also no sign that the current congress, nor a future gerrymandered one, will uphold their mandate for legislated tariff responsibility.

https://news.bloomberglaw.com/in-house-counsel/here-are-trumps-options-if-tariffs-ruled-unlawful-quicktake

hank

DavidF said:

Giroux feels strongly that vast majority (not all) of Trump tariffs will be declared unconstitutional by courts. How will markets react to that if/when it happens?

Well … normally, the “smart money” would have priced that in by now. But I’m not sure there’s any smart money left.

I tried to pull up something re Giroux’s political leaning / party affiliation last evening. Drew a blank. “Smart managers” probably try to hide their leaning, since taking a side is a good way to alienate a substantial proportion of clients regardless of the side you favor. I know Giroux attended a conservative college in Michigan. I can say that a couple decades ago TRP had some loose ties to Democrats. Not sure now how that was expressed. And I think they drew some flack for their preference. I do remember that perhaps the best fixed income person they ever had, Mary Miller, left the firm to take a position in the Obama administration. Also, Gary Gensler’s brother was a money manager with TRP for many years. Not sure if he still is.

Thanks @DavidF for sharing DG’s thoughts on the tariffs.

Crash

Tariffs, yes. But as noted above, there will be legal delays, denials, deflections... All adding up to a lengthy slog through the courts, and then higher courts, before anything even approaches being rescinded. What we have already, without it being declared is a hybrid flavor of martial law. Under the fake emergency powers, Orange can do anything, as long as the majority on the Hill remain spectators.

Whenever a court decision on reversing tariffs is published, there will be a blip on the radar screen, then back to business as usual. My fearless prognostication.

larryB

@Hank. Being from Michigan like you,,,, I would agree that Giroux’s Alma Mater, Hillsdale College,, is conservative. In fact it is to the right of conservative, although that is certainly subjective. But I don’t know if one can infer anything from the school choice that was made at 17.