MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

How much longer do I give Vanguard Capital Opportunity (VHCOX)?

mnzdedwardsmnzdedwards
edited July 2011 in Fund Discussions
Long time reader (great discussions!) who is seeking advice one of my best ever long-time holdings - VHCOX. I have held VHCOX since 1998 and have enjoyed index-beating returns (albeit with some huge drops along the way). And yet my patience is wearing thin. It's risk-adjusted performance over the past 3 years is mediocre. How much time to I give to a 13-year holding that has served me well (in the past)?

If VHCOX needs to be retired from my portfolio (with a grateful sendoff), what would be an equivalent type replacement? Perhaps VOT (Vanguard Midcap Growth) or VUG (Vanguard Growth)?

What say you?

Mike E.

Comments

  • [Deleted User][Deleted User]
    You could take a look at the other Primecap funds. POAGX is the smallest, most aggressive of them focusing on small-mid US stocks. These funds however aren't Vanguard funds so they aren't NTF there. Since my account's at VG if I had a chance to get into VHCOX I would. Personally I'd hold it or purchasing the Midcap value index fund.
  • ma710
    Show patience. Its a good fund but I think its now a large cap fund.
  • Kenster1_GlobalValue
    edited July 2011
    Rydex S&P Midcap 400 Pure Growth ETF.....3-yrs annualized: +19.03%

    First Trust Midcap Core AlphaDex ETF.....3-yrs annualized: +13.47%

  • _AP_
    There have been numerous studies that show every great manager will underperform over a 3-5 year time period at some point. If nothing inherently has changed (team/strategy), it's probably best to just stick it out. Especially since you run the risk of jumping to another manager who has done well, but is set up for their own period of underperformance, in which case you'll get hit twice. PRIMECAP is top-notch. I would think twice about selling out of that fund. Just my two cents...
  • mnzdedwardsmnzdedwards
    Well said and thought out _AP_. And I agree. What I struggle against is with what happened to the Dallas Cowboys in the late 1990's - they held on to their aging veterans too long and suffered for it. Am I holding on to an aging veteran that has served me very well since 1998? Am I setting myself up for a Bill Miller type disappointment?

    Perhaps that is why index funds are so alluring - you know what you will get (market returns - no more, no less).

    Thanks for everyone's input. I appreciate it.
Sign In or Register to comment.