Howdy, Stranger!

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

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

M*: Q&A With David Giroux, Manager, T. Rowe Price Capital Appreciation Fund: Text & Video: (PRWCX)

FYI: ( Unfortunately, PRWCX is closed to new investors.)

Hi, I'm Jason Kephart, senior analyst on Morningstar's Multi-Asset and Alternatives Research Team, and I'm joined today by David Giroux, portfolio manager of T. Rowe Price Capital Appreciation, a fund that's been on a Joe DiMaggio-like streak over the last decade. It hasn't finished worse than 29th in the category over any single year over the last 10 years.

M* Snapshot: PRWCX:

Lipper Snapshot PRWCX:

PRWCX Is Ranked #6 In The(50/70 E) Fund Category By U.S. News & World Report:


  • Impressive discussion yesterday by David Giroux. Made big GE endorsement. c
  • BRUFX, a fund I use for my HSA, seems to be over weighting the same three sectors.
  • PRWCX is my favorite fund and largest holding. Sometimes I feel like putting everything in this one fund.
  • MikeM said:

    Ditto @Lawlar.

    PRWCX = 32.35% of my stuff. I'm now bond-heavy, in retirement. It's my favorite, too, and my only balanced fund. I'm 61% bonds, 25% US equities, and 7% foreign equities. The rest is cash and cash equivalents and "other," according to Morningstar.
  • I own PRWCX as well. I'm also happy with it but have this nagging memory of how popular Sequoia was ....until it wasn't. I'm a long-term holder of PRWCX and hope that David can keep turning out high risk-adjusted returns.
  • edited May 2019
    Here’s how TRP describes PRWCX : “The fund invests primarily in the common stocks of established U.S companies we believe to have above-average potential for capital growth. Common stocks typically constitute at least half of total assets. The remaining assets are generally invested in other securities, including convertible securities, corporate and government debt, foreign securities, and futures and options.”

    Here’s how they describe RPBAX: “The fund seeks to provide capital growth, current income, and preservation of capital through a portfolio of stocks and fixed-income securities. The fund normally invests approximately 65% of total assets in U.S. and foreign common stocks and 35% in fixed-income securities. At least 25% of total assets will be invested in senior fixed-income securities.”

    Here’s how they describe RPGAX: “The fund seeks to invest in a broadly diversified global portfolio of investments, including U.S. and international stocks, bonds, and alternative investments. The fund uses an active asset allocation strategy in conjunction with fundamental research to select individual investments ... Under normal conditions, the fund's portfolio will consist of approximately 60% stocks; 30% bonds, money market securities, and other debt instruments; and 10% alternative investments.”

    While it’s common to refer to PRWCX as a balanced fund, Price’s RPBAX would appear to better fit that description. And RPGAX at first blush also appears to be more accurately termed a balanced fund. However, with RPGAX Price’s approach seems to point more in the direction of an equity-centric hedge fund, employing various hedging strategies (and also investing in an outside party hedge fund).

    I’m not sure what to call PRWCX. It does have some similarities to a balanced fund, but Price assigns it more of a “go-anywhere” mandate. Seems to me that over the 25 years I’ve owned it, different managers have taken it in quite different directions. Each has been successful in his own way. It’s my fourth largest holding at TRP. RPGAX, RPSIX and TMSRX are all ahead of it. That has everything to do with my overall allocation approach and isn’t a reflection of which fund I think is better. If I had to guess 10-15 years out, however, I’d guess RPGAX might outdistance it.
Sign In or Register to comment.