I own both. Good funds. This is purely hypothetical.
If you were going to sell part or all of one to raise portfolio cash, which is the better one to retain going forward (1-3 years)?
- In favor of keeping RPGAX: Has 10% in a Blackstone hedge fund that should protect somewhat in a bear market, has solid conservative management at TRP, probably has had a more level performance record since inception (but didn’t exist in 2008).
- In favor of keeping DODBX: Much lower ER (.53% vs .95%), Is more in-tune with the recent shift towards value, bond portion is managed by the same folks that run their excellent DODIX
MaxFunds is of little help. Forecasts a “worst case” (1 year) loss of 60% for RPGAX and a slightly worse 65% loss for DODBX. On the one-year upside potential, they’re rated identically. However, MaxFunds rates RPGAX much more highly overall. This appears largely based on their assessment that DODBX is bloated.
*Note - I don’t think the “global” vs “domestic” issue is worth fretting over here. DODBX typically holds some foreign stocks - more than one might think.
Comments
1. RPGAX rated higher than DODBX on lower risk over 1, 3, and 5 years period.
2. RPGAX has lower maximum drawdown in March 2020, -15.7% versus -21.0%, than that of DODBX. The recovery period is 7 months versus 11 months in favor of RPGAX.
3. The ulcer index and Martin ratio are higher in RPGAX than those of DODBX.
If you already own a growth-oriented allocation fund such as PRWCX, pairing it with the DODBX would allow you to capture the recent shift to value stocks.
Even DODBX's $15B asset is not small, the firm should able to manage it well. BTW, D&C only managed 6 funds.
If I don't have any balance fund, RPGAX would be a solid choice.
RPGAX would be my choice. D&C still seems to be slow-moving and late to adapt to changing situations/trends (as they were horribly during the GFC) ..... TRP is more agile, global-oriented, and in my view are the more proactive firm. If I had to buy or keep one, I'd be RPGAX.
Disclosure: I hold RPGAX in taxable; DODBX in Roth.
Lots of good discussion in this thread. It’s hard to take risk off the table in today’s environment.
Accustomed to this “slicing and dicing.” No big deal.
I came across this review tool and I selected RPGAX to review. Finny is a subscription service but I have been able to review individual funds for free once a day. See if it opens for you.
https://askfinny.com/posts/mutf-rpgax-stock-review
- Their “60” score is interesting. MaxFunds says “91”. Finny finds a low AUM a detractor (If I read it right) while MaxFunds would find that a positive.
- Appears they’ve tempered back the initial 10% in the Blackstone fund. Finny puts it at just 7.5%.
- Finny is harsh on fees. I am too. RPGAX is to a degree a defensive fund (boutique?) and those types of approaches tend to generate higher fees.
- Glad my question generated some discussion. Folks are right that DODBX exhibits more erratic performance than RPGAX. Still, IMHO, over very long time frames it’s hard to beat the advantage of a substantially lower ER.
Thank you for the info. I run VPN on the laptop. This does cause problems with some sites. When I place FBALX into the search, the return info is for FPURX; and then stated that if I want a full data report, that I must subscribe.
“Given our analysis, we initiated a short S&P 500 futures position in the first half of 2020 which had a notional value of approximately -6.6% of the Fund’s total net assets by year end. We are excited about the prospects for the Fund’s equity portfolio, but less excited about the overall equity market (e.g., the S&P 500). In shorting equity index futures, we are able to manage the overall equity exposure of the Fund while still maintaining idiosyncratic exposure to the companies we favor.”
https://www.dodgeandcox.com/pdf/shareholder_reports/dc_balanced_annual_report.pdf
- Excuse D&C’s self-promotion here. Hard to edit it out without distorting the underlying meaning.
Re TMSRX ... It isn’t intended to be a stand-alone investment. Those who put a lot of faith in their self-designed allocation models can benefit by using it as an offset / hedge against other risk assets they hold - or possibly as a diversifier. I believe all the fund houses, including TRP, tell you their funds aren’t intended to be stand-alone investment# - but in the case of TMSRX it’s really true.
And just noticed M* gives TMSRX a 4-star rating. LOL - that’s nuts (and I own it). IMHO it hasn’t been around long enough to rate. And trying even to rate a fund like this would seem tantamount to telling the wind to stop. Give it 5 years minimum and see what kind of personality it develops in many different market environments.