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some insights new to me : - expects leveraged loans to work opposite gov bonds ( regardless of +/- changes to stock-to-bond correlations?) - if running an endowment, would allocate to middle-market private equity (and credit?)
Thank you very much. This hour-long interview provides more information on Giroux and his portfolio management this year. Additional noteworthy points he made:
1. PRWCX is now at 51% equity whereas historically stock allocation is at 60%. 2. All sectors of S&P 500 are over-valued comparing to the historical value. TRP continues to monitor for pockets of opportunities - mostly GARP like stocks with good earning and reasonable multiples. 3. He likes the combination of bank loans and treasury so to complement each other through the rise and fall of interest rate cycle. He call them “peanut butter & jelly” sandwich. 4. He is not a fan of Trump’s tariffs and their consequences.
Hard time simply following him, understanding him, this time. But I still am convinced he's really good at what he does. 53.36% of portfolio is with PRCFX and PRWCX.
GARP is entirely about a 'sensible' slugging %. they still err on the side of holding overvalued equity and rarely exit pre-peaks. it meshes well when if there is also a sensible strategy in complementary asset classes.
Nice discussion. Thanks folks. No longer own PRWCX so haven’t listened to the interview. Agree with your high appraisal of the fund and Giroux. Already a legendary investor.
Noting Giroux has lightened up on the Mag 7 …. Perhaps remotely related - To show how hard NVDA and some of the high flyers have been hit lately, PRPFX (+4.9% YTD) managed to close down 0.50% a couple days ago in spite of a very good day for gold. People tend to overlook that that fund allocates 15% to “aggressive growth” stocks. NVDA was one of the stocks propelling it much higher a year ago.
BTW - I was looking over Stack’s late February newsletter last evening. If I’m reading his charts accurately, utilities were the cheapest equity sector on a relative basis compared to all other sectors at time of publication. Most interesting.
Comments
1. PRWCX is now at 51% equity whereas historically stock allocation is at 60%.
2. All sectors of S&P 500 are over-valued comparing to the historical value. TRP continues to monitor for pockets of opportunities - mostly GARP like stocks with good earning and reasonable multiples.
3. He likes the combination of bank loans and treasury so to complement each other through the rise and fall of interest rate cycle. He call them “peanut butter & jelly” sandwich.
4. He is not a fan of Trump’s tariffs and their consequences.
Note to self: add to existing position in PRCFX on Monday.
Microsoft Corp.
Apple Inc.
Amazon.com Inc.
Alphabet Inc. Cl A
NVIDIA Corp.
Meta Platforms Inc.
Giroux decreased percent holdings in all of these, except Meta, since 12/31/24.
GARP is entirely about a 'sensible' slugging %.
they still err on the side of holding overvalued equity and rarely exit pre-peaks.
it meshes well when if there is also a sensible strategy in complementary asset classes.
He often talks fast, but after listening to this interview, it sounds like he's starting to "swallow his words" a *lot* more than usual....
Noting Giroux has lightened up on the Mag 7 …. Perhaps remotely related - To show how hard NVDA and some of the high flyers have been hit lately, PRPFX (+4.9% YTD) managed to close down 0.50% a couple days ago in spite of a very good day for gold. People tend to overlook that that fund allocates 15% to “aggressive growth” stocks. NVDA was one of the stocks propelling it much higher a year ago.
BTW - I was looking over Stack’s late February newsletter last evening. If I’m reading his charts accurately, utilities were the cheapest equity sector on a relative basis compared to all other sectors at time of publication. Most interesting.