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.
giroux not using same team.. i view prcfx equity sleeve as derived from prwcx, and hope former can take advantage of smaller base.
or maybe just title\pay promotion. m* : 3 new comanagers added ,Vivek Rajeswaran, Brian Solomon, and Mike Signore , and TCAF at [30 june 2025]. ... have been associate portfolio managers since 2023, each has a longer tenure as an analyst contributing to strategy.
I’ve searched the web and TRP’s site for news of this managerial development. Can’t find anything. This link pulls up their website with manager information. Giroux is listed as sole manager of PRWCX. But obviously there’s a deep team of researchers and analysts to support him. His photo resembles a 60s era rock star. Wondering where’s the band?
In the Summary Prospectus and Section 1 of the Prospectus, the portfolio manager table under “Management” is supplemented as follows:
Effective June 30, 2025, Vivek Rajeswaran, Mike Signore, and Brian Solomon will become co-portfolio managers of the fund. David R. Giroux will remain as the fund’s portfolio manager and sole chair of the fund’s Investment Advisory Committee. Mr. Rajeswaran joined T. Rowe Price in 2012, Mr. Signore originally joined T. Rowe Price in 2015 and returned in 2020, and Mr. Solomon joined T. Rowe Price in 2015.
This isn't included in the manager information because it hasn't happened yet.
The real shock is that Shadow seems to have missed this (gasp!). That's about as unlikely as oil prices dropping after the US bombs Iran. Or to borrow from Ghostbusters, the next thing we'll have are dogs and cats living together.
As good as Giroux is / has been, I’d personally be uncomfortable with a very large percentage of my portfolio under one man or woman. The fund’s size is astronomical. Not meant as advice. Have to wonder though if he’ll pull a “Peter Lynch” one of these days and get out at the top? Magellan was never the same after Pete left. Giroux could earn a nice living writing & selling books.
You have a good point. Giruox is the sole manager on the equity side and that pose “manager” risk if/when he is no longer in that position. Although TRP has a deep bench so did Fidelity.
Having said that, every investors have their unique situation and risk tolerance. It would be wise to be mindful for having too much of a good thing.
Noted that professor Snowball portfolio does not owned PRWCX, probably for the same reason @hank mentioned above.
I usually avoid funds with a "star manager." Team-managed funds are preferred since they mitigate "key person" risk. It's important to note that T. Rowe Price does has a deep analyst bench.
I thought it would be entertaining and potentially instructive to go over the list of talented managers who have run PRWCX since inception. While none attained the notoriety of Giroux, all excelled. If memory is correct Giroux came in about 15 years ago along with a co-manager of equal status. That lasted only a year or two. ISTM the fella’s name was Jeff Arackle or something similar. It later came out he had some serious personal issues (financial ?) but I can’t recall the nature of such.
I even resorted to Bing’s AI asking about the history of managers for this fund. All AI could provide is this:
“Publicly available sources do not list any named individual managers prior to David Giroux (2006). Earlier reports consistently highlight Giroux as the first lead manager since founding. T. Rowe Price has not disclosed earlier stewardship or predecessor managers in public filings or press materials.”
Surely AI isn’t providing a very intelligent answer! I’d also love to know how much the fund has grown in AUM under Giroux? I’d guess it’s doubled since he became co-manager - perhaps even adjusting for asset growth..
"The Fund’s positive return streak and investment approach has been sustained over the years by several managers. Prior to Messrs. Arricale and Giroux, who became co-managers in July 2006, the Fund was managed by Stephen Boesel from August 2001 to June 2006 and by Rich Howard from January 1989 to July 2001."
I don't know who managed PRWCX from June 30, 1986 through December 1988.
The first manager was highly regarded and ran the fund a long time. I’ll guess 15+ years. Very low-key individual. There was much worry among investors when he retired. My thoughts are that it was a much different fund in the early days (even more conservative then today) - but to speculate further would be unwise. Larger highly successful PRFDX was more talked about in the press and touted by “authorities” back then under famed manager Brian Rogers .
Top Executives Name Title Since Until David R. Giroux Vice President 2006 Now Jeffrey W. Arricale Deputy Director 2006 2007 Stephen W. Boesel Managing Director and portfolio manager 2001 2006 Richard P. Howard Senior Vice President 1989 2001 Richard H. Fontaine Vice President, Portfolio Manager 1986 1989
A superstar at the helm of T. Rowe Price Capital Appreciation fund in the late 1980's, Mr. Fontaine anticipated the 1987 market crash and bought aggressively afterward, delivering average annual returns of nearly 40 percent.
Side note: T. Rowe Price Capital Appreciation commenced operations on June 30, 1986. It was legally created as T. Rowe Price Capital Advantage Fund on May 9, 1986 and changed to its current name on June 29, 1986. https://www.sec.gov/Archives/edgar/data/793347/0000793347-94-000004.txt
When AI fails (often it seems) it’s nice to know there’s @msf as reliable backup. The real thing indeed!
Boesel is the first one I can recall. But might have dabbled in the fund when Mr. Howard ran it. Sounds like Fontaine’s good judgment (or good luck) gave the fund a nice “kick-start” …
Comments
https://prospectus-express.broadridge.com/summary.asp?doctype=pros&clientid=trowepll&fundid=77954M105 This isn't included in the manager information because it hasn't happened yet.
The real shock is that Shadow seems to have missed this (gasp!). That's about as unlikely as oil prices dropping after the US bombs Iran. Or to borrow from Ghostbusters, the next thing we'll have are dogs and cats living together.
but it does mean that giroux is the only common link between prwcx and prfcx.
maybe shuggi also.
Having said that, every investors have their unique situation and risk tolerance. It would be wise to be mindful for having too much of a good thing.
Noted that professor Snowball portfolio does not owned PRWCX, probably for the same reason @hank mentioned above.
giroux not going anywhere.
but in america, any of our admired manager(s) are 1 errand from getting crushed by some ridiculous SUV or pickup.
Team-managed funds are preferred since they mitigate "key person" risk.
It's important to note that T. Rowe Price does has a deep analyst bench.
I even resorted to Bing’s AI asking about the history of managers for this fund. All AI could provide is this:
“Publicly available sources do not list any named individual managers prior to David Giroux (2006). Earlier reports consistently highlight Giroux as the first lead manager since founding. T. Rowe Price has not disclosed earlier stewardship or predecessor managers in public filings or press materials.”
Surely AI isn’t providing a very intelligent answer! I’d also love to know how much the fund has grown in AUM under Giroux? I’d guess it’s doubled since he became co-manager - perhaps even adjusting for asset growth..
by several managers. Prior to Messrs. Arricale and Giroux, who became co-managers in July 2006,
the Fund was managed by Stephen Boesel from August 2001 to June 2006
and by Rich Howard from January 1989 to July 2001."
I don't know who managed PRWCX from June 30, 1986 through December 1988.
https://investors.troweprice.com/news-releases/news-release-details/t-rowe-price-capital-appreciation-fund-extends-unmatched
The first manager was highly regarded and ran the fund a long time. I’ll guess 15+ years. Very low-key individual. There was much worry among investors when he retired. My thoughts are that it was a much different fund in the early days (even more conservative then today) - but to speculate further would be unwise. Larger highly successful PRFDX was more talked about in the press and touted by “authorities” back then under famed manager Brian Rogers .
Side note: T. Rowe Price Capital Appreciation commenced operations on June 30, 1986. It was legally created as T. Rowe Price Capital Advantage Fund on May 9, 1986 and changed to its current name on June 29, 1986.
https://www.sec.gov/Archives/edgar/data/793347/0000793347-94-000004.txt
Boesel is the first one I can recall. But might have dabbled in the fund when Mr. Howard ran it. Sounds like Fontaine’s good judgment (or good luck) gave the fund a nice “kick-start” …