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Large Cap Ideas

edited November 2021 in Fund Discussions
At some point, we all overthink our investment choices and I'm bouncing this idea off of the MFO folks to provide me some reasoning/guidance.
In my Rollover where 60% of my retirement assets currently sit, I have a healthy, diversified portfolio. In particular, I spread my Large Cap OEF's across Growth, Blend/Core and Value. I consider style, overlap, cost, holdings, Up/Down, SD and Beta. Currently I have the following - HCAIX (Growth), PRDGX (Blend), HCMAX (Value).
TRP has a new Summit 'program' that kicks off on Nov. 15th and part of that is existing clients with a certain asset level will be able to purchase closed OEF's. I'd like to buy PRWCX and use it as a Allocation/Tactical sleeve in my Rollover. I know it's not considered 'tactical' but Giroux successfully moves to all types of investments beyond the atypical equity/fixed income in a tactical fashion.
Here is the potential overthinking - Should I add this and keep the PRDGX position? The Equity sleeve of PRWCX(50-70%) is typically invested in Core/Blend style box...there are also approx 20 holdings that overlap with PRDGX. I recognize that's the overthinking part and not a big deal but it's something I always review.
Would you use PRWCX as an allocation/tactical play and add it or replace PRDGX? I also own BCOIX and PRSNX as my fixed income investments.

Comments

  • edited November 2021
    I have owned PRWCX for several years. My highest allocations are to PRWCX and FBALX.

    If I only owned two funds they would be these two that just so happen to work pretty damned well in concert with each other.

    Cutting to the chase: If I didn't own PRWCX and now had an opportunity to BUY it, I'd sell anything else I own to do so. If it were me, I'd BUY it and HOLD it as long as Giroux is at the helm. It's really that simple (for me at least).

    Aside: I have a smallish CD maturing next week. Proceeds are going to PRWCX.
  • Stillers, Thanks for the feedback - Definitely buying PRWCX regardless...my wife has owned it as her sole holding in her Roth IRA for 15 years.
    I'll wait for additional thoughts...
  • Great discussion. Have you guys seen anything recent about PRWCX opening to new investors? With the split in Price companies I’m hoping this happens soon. I’ve been waiting for 5 years to get in. Thx
  • By the way, @khaw24 is your value fund Hillman Value? Ticker is off. I’ve been evaluating it. My main fund for value is Smead now
  • Looks like Summit Program to buy closed funds starts at 250k, which is a great deal more reasonable than Vanguard's 1 million level for extra perks !
  • Hard to feel sorry for Saratoga's whining (member on big bang site) about potential asset bloat in PRWCX. I'm sure GMO or Dimension Funds can handle his millions nicely !
  • Thanks very much for sharing that link @Stillers. So I’m assuming that 250k could include some non T Rowe Price funds too?
  • One can always go straight to the horse's mouth:
    https://www.troweprice.com/personal-investing/campaign/summit-program.html

    This is essentially the same basic information that T. Rowe Price sent to customers last month via email, though it adds a lot in its FAQs. What follows is what I read into this preliminary announcement; I could easily be misinterpreting.

    - This appears to be the replacement for T. Rowe Price's "Select Client Services", including Personal Services ($250K min) and Enhanced Personal Services ($1M min). That program used to also include Preferred Services ($100K) - see, e.g. footnote 2 on p. 4 here - that TRP quietly phased out a few years ago.

    TRP writes (regarding Select Client Services): "The Summit Program is T. Rowe Price’s revamped benefits program that will offer special access to products and services from T. Rowe Price." It doesn't say explicitly that Select Client Services is being discontinued, though that would be the most reasonable interpretation. Alternatively, TRP might allow existing Select Client Services to remain in that program, much as they appear to have grandfathered Preferred Services ($100K) customers after phasing out that tier.

    - It is reasonable to assume that eligible assets (i.e. what's counted toward the min) will be the same for old and new programs, though nothing explicitly says that.

    - If this Summit program is replacing Select Client Services, will it still provide free M* premium membership?

    - The Summit program, like Select Client Services, will have multiple levels. But what they are and what the minimums are remain largely unstated. Though $250K is the min for the Summit program, so that must be the lowest tier. And $500K is likely the min for a tier because that level qualifies you to invest in I class shares.

    - "Preferred access" to closed funds doesn't say what that preference is nor does this say that you'll have access to all closed funds. TRP might operate like Vanguard and allow Summit customers to buy, say, $25K of a closed fund per year. TBD.

    - We may expect a flurry of activity from Shadow as TRP updates its funds' prospectuses:-)
  • Thanks very much for providing these details @msf. You raise some great questions. I’m going to call up TRP to ask specifically about access to Capital appreciation and New Horizons. It will also be interesting if they provide broader access to all closed funds once TRP spits in two
  • MikeW...yes, thats Hillman Value (I corrected the symbol)
  • Any thoughts on the OP???
  • I’m sorry what is OP?
  • edited November 2021
    MikeW said:

    I’m sorry what is OP?

    Original Poster who started the thread.
  • @KHaw24 It's hard for me to comment on choosing PRWCX over PRDGX not knowing your specific situation in terms of age and how close to retirement you are, how you are currently allocated, and what your other holdings might be. They are both excellent funds. Personally, I have been wanting to add PRWCX for a number of years and plan to buy it if/when it opens up again. For me, however, if I were to select a large cap blend fund, I would probably invest in PRBLX. If you run the screen on MFO Premium you'll find that PRBLX is a Great Owl, has stronger APR over the past 5 and 10 years as well as lifetime of the funds, has less max drawdown, and has performed better in bear markets.
  • edited November 2021
    My asset allocation for this portfolio - 56% Domestic Equity, 22.5% Int'l/EM, 20% Fixed Inc. I am 13 years from Retirement and all of my equity holdings are a healthy split across Style and Market Cap.
  • edited November 2021
    Good post @KHaw24 . The OP mentioned growth, blend and value. But just focusing on Blend for the moment - I agree with @MikeW on PRBLX over PRDGX for the reasons he mentioned. I don't own the fund because every time I look closer at it - I compare it to the plain old S&P 500 or FXAIX and have a hard time justifying peeling some from FXAIX with a .015 ER vs PRBLX with a .84. The disparity in max DD, Ulcer and StdDev is not that much to me.

    There could be an entire thread about LC Growth funds (so many).

    For Value, I really like PARWX and am invested there. I think when you compare it to HCMAX, you'll find it outperforms in almost every category/time period. Worth looking at.

    PRWCX is just a great fund. Wished I owned it and might if it opens up. Until then, happy to stay with FBALX and FMSDX for now. Best to you.
  • Jon raises some great points about large cap blend. If you already hold SPY then you probably have this area covered well. But it is a wonderful fund. We all have our different favorites. I'm curious what funds you have as your international holdings. International has underperformed for so long now that I find that to be much more difficult in terms of fund selection. My main fund here is MIOPX which has great performance over the long term but has lagged some this year because of China. One fund that I'm currently evaluating is WCM focused International Growth. However, I would love to find a strong international blend fund. The performance just hasn't been there though for that asset class over the past 10 years. Would be interested if anyone has found a good one.
  • JonG

    Good post @KHaw24 . The OP mentioned growth, blend and value. But just focusing on Blend for the moment - I agree with @MikeW on PRBLX over PRDGX for the reasons he mentioned. I don't own the fund because every time I look closer at it - I compare it to the plain old S&P 500 or FXAIX and have a hard time justifying peeling some from FXAIX with a .015 ER vs PRBLX with a .84. The disparity in max DD, Ulcer and StdDev is not that much to me.

    There could be an entire thread about LC Growth funds (so many).

    For Value, I really like PARWX and am invested there. I think when you compare it to HCMAX, you'll find it outperforms in almost every category/time period. Worth looking at.

    PRWCX is just a great fund. Wished I owned it and might if it opens up. Until then, happy to stay with FBALX and FMSDX for now. Best to you.

    Thanks...I owned PARWX for a while in my 401k but started transitioning to cost effective OEF's and ETF's like the Fido Funds you mentioned. ISn't there a looming retirement on Endeavor's PM team? Not certain if I am correct on that...

  • MikeW said:

    Jon raises some great points about large cap blend. If you already hold SPY then you probably have this area covered well. But it is a wonderful fund. We all have our different favorites. I'm curious what funds you have as your international holdings. International has underperformed for so long now that I find that to be much more difficult in terms of fund selection. My main fund here is MIOPX which has great performance over the long term but has lagged some this year because of China. One fund that I'm currently evaluating is WCM focused International Growth. However, I would love to find a strong international blend fund. The performance just hasn't been there though for that asset class over the past 10 years. Would be interested if anyone has found a good one.

    Here ya go...added comments

    WCMIX (Int'l Gowth) - Great performance, Concentrated
    CIVVX (Int'l Value) - True to their Style
    PRIDX (Int'l Small/Mid) - One of my favorite funds and categories
    GQGPX (EM) - Replaced Harding Loevner 2 years ago

    In my other accounts ...I have a Roth IRA with Vanguard and own VWIGX, My 401k has DODFX, BUFIX, ARTJX and ARTYX

  • edited November 2021
    KHaw24 said:

    Here ya go...added comments

    WCMIX (Int'l Gowth) - Great performance, Concentrated
    CIVVX (Int'l Value) - True to their Style
    PRIDX (Int'l Small/Mid) - One of my favorite funds and categories
    GQGPX (EM) - Replaced Harding Loevner 2 years ago

    In my other accounts ...I have a Roth IRA with Vanguard and own VWIGX, My 401k has DODFX, BUFIX, ARTJX and ARTYX

    Nice fund selection!
    Personally, I'm not fond of Causeway Intl Value and am unfamiliar with Buffalo Intl.
    I would have purchased PRIDX if it wasn't closed to new investors.
    For those interested in WCMIX, the fund will soft-close after 11/30/2021.
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