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Nice write-up by Charles in the Observer on last month’s Morningstar Investment Conference

edited June 7 in Fund Discussions
Conference was held in Chicago. Charles’ comprehensive summary of the meeting includes some nice insights into PRWCX and manager David Giroux’s methodology. The most tantalizing line to me was:

“The fund used the current correction to reduce its cash from 12% to 3% and go overweight equities. If equities decline further, he (Giroux) will add more …”

This might also fit under “Other Investing” as it’s a commentary on the broader markets as well as a single fund.

Comments

  • Let me add I also enjoyed his piece. Only question I have pertains to the picture of a graph showing , " Morningstar over or under valued stocks". An article in Mondays (?) WSJ contained 8 ways of analyzing market as to being O/U valued. Basically saying Mr. Market is still over valued.
    With that said it makes me wonder if I want to be a player, dipper, at this time.
  • edited June 7
    Here’s the picture @Derf referenced from the article by Charles Boccadoro.

    Giroux maintains a 3-5 year investment horizon. Takes a leap of faith for some of us to think that far out. So Giroux has an advantage over many of us. It’s not his money. It’s an institutionally managed fund with pretty much an unlimited time horizon. Were he to leave tomorrow, the fund would carry on.

    image
  • Wonder what positions Giroux added to? Besides cash, the fund still has sizable floating rate bonds.
  • i just looked at trp website. it looks like he spread the $$$ around in baby-sized bites. Top 10 = 32.53% of portf. He reduced amazon, noticeably.
  • edited June 8
    Thanks @Crash. He is not happy with Amazon on several fronts. Retail sale and cloud service are flat. Hard to justify the high valuation going forward. Now it is at 3.6%.

    The stock allocation in the fund is at 64%, a bit lower than the past where it was as high as 70%. Cash is at 1.8% whereas it was at over 10%. Bond is at 28%. Apple is a new addition at 3%.

    @hank, don’t think Giruox is going anywhere soon. Even so, TRP does a good job with their secession plan in case the lead managers retire or leaving the firm. It is the sheer size of the fund that concern me.
  • edited June 8
    "...sheer size." Yes, the golden goose. Those already in, like myself, don't want to let go. I took T-IRA withdrawal early in 2022 entirely from PRWCX. There was more than enough profit from 2021 to spare..... 28% bonds now? That's hefty, given uncle Dave's record.
    I dumped a single-stock pile of manure that was never going to be anything substantial in terms of its size in my portfolio: ENIC. The money, plus additions, has been transplanted into three other DIVIDEND PAYING single stocks, and I'm counting on them to produce, even better than bond dividends. (I'm still 27% in bonds, overall.) I've mentioned them before: RGR BHB. ET.
  • It has been a tough year for us. Mostly red and few green.
  • Thanks @hank!

    I find returning to M* Conference each year a sort of touchstone.

    Sure, trends of moment present and pervasive.

    But then folks with longer view persist.

    Honestly, feel fortunate each time I get to attend ... no different this year, and I got to meet Devesh and see David again ... in person!

    c
  • Giruox has been a master in using bond & cash positions to counteract his equity risk. His goal is to provide equity-like return while maintain below market risk over a 5 years period.
  • Sven said:

    Giruox has been a master in using bond & cash positions to counteract his equity risk. His goal is to provide equity-like return while maintain below market risk over a 5 years period.

    +1. Yes indeed. Gotta remember to buy some more PRWCX if it falls a couple of bucks further.
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