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These Actively Managed Stock Mutual Funds Outperformed Their Benchmarks
Although the article reads like a press release / marketing brochure, I am fairly pleased w/TRP's funds and approach to investing. (I hold PRWCX, PRGTX, and PRHSX) A good company!! (Giroux' comments in last week's SA report for PRWCX were spot-on and I agreed pretty much entirely w/his sentiment and portfolio positioning for the future.)
I've never held an index fund, btw. Frankly, I've yet to find an index I would want to be tied to!
Concur on T. Rowe Price. My largest hold there is RPSIX. Also like PRWCX and TRRIX. I doubt I've ever owned an index fund. Nothing against them. Just hard to teach an old dog new tricks. T. Rowe will make you lots of $$ given a fair chance.
Another fine active manager is Dodge and Cox. But you need to have a very long-term perspective with their value investing style and the unwieldy size of their funds. Definitely not a nimble one. I sense they don't like hot money anyway.
Nearly 2/3 of our investments are in TRP funds. Never owned an index fund either...not saying never, but no one has ever been able to show me a realistic 60/40 allocation of index funds that can stand up to PRWCX, and until that happens...index funds are not in our near future.
Agree on Giroux's comments also, he sure does give you confidence in the fund going forward. If you liked PRWCX's semiannual report, check out the TRP Mid-Cap Growth semiannual report if you have time. Here's one part from it I love:
"In past letters, we have referenced former Federal Reserve Chair William McChesney Martin’s description of easy money being the “punch bowl” that keeps a party going on Wall Street. Perhaps it is time to change the metaphor, as the market’s mood has hardly been celebratory—even as money has literally never been easier (as we explain below). Instead, it may make sense to think of the party as in the process of winding down and the central bankers—far from being the chaperones who order the punch bowl removed, as Martin advised—imploring investors to belly up to the bar for one last drink."
Based on the above, I've read Giroux's June 30 fund report for PRWCX. Don't know whether he's right or wrong. But he certainly doesn't leave us wondering what he thinks.
Sample from report (available at T. Rowe's website): "Given the unprecedented environment, your portfolio manager team has redoubled our efforts, analytics, and infrastructure to protect the downside. In addition, we have spent a considerable amount of time in the first few weeks of July just trying to get our heads around why interest rates are so low, what central bankers are trying to accomplish, and even learning about the concept of 'helicopter money,' whereby a central bank prints money and puts this money directly into the real economy."
I tried to take a little risk off the table today - hard to do in a world of near 0% short-term rates. Lightened up on EM debt and shifted a bit from DODBX to RPGAX. Despite a much higher ER, second is much more broadly diversified. Rearranging furniture on the deck of the Titanic?
@Hank, Ive been rearranging my house too. Sold 1/2 my position in PKW and put it into VOO, VWINX, TWEIX and VCIT. Also am selling my biotech and transferring it to my health care fund PHSZX and PJP. I guess some of us are also lightening up on some riskier assets.
Comments
I've never held an index fund, btw. Frankly, I've yet to find an index I would want to be tied to!
Concur on T. Rowe Price. My largest hold there is RPSIX. Also like PRWCX and TRRIX. I doubt I've ever owned an index fund. Nothing against them. Just hard to teach an old dog new tricks. T. Rowe will make you lots of $$ given a fair chance.
Another fine active manager is Dodge and Cox. But you need to have a very long-term perspective with their value investing style and the unwieldy size of their funds. Definitely not a nimble one. I sense they don't like hot money anyway.
Agree on Giroux's comments also, he sure does give you confidence in the fund going forward. If you liked PRWCX's semiannual report, check out the TRP Mid-Cap Growth semiannual report if you have time. Here's one part from it I love:
"In past letters, we have referenced former Federal Reserve Chair William McChesney Martin’s description of easy money being the “punch bowl” that keeps a party going on Wall Street. Perhaps it is time to change the metaphor, as the market’s mood has hardly been celebratory—even as money has literally never been easier (as we explain below). Instead, it may make sense to think of the party as in the process of winding down and the central bankers—far from being the chaperones who order the punch bowl removed, as Martin advised—imploring investors to belly up to the bar for one last drink."
Sample from report (available at T. Rowe's website): "Given the unprecedented environment, your portfolio manager team has redoubled our efforts, analytics, and infrastructure to protect the downside. In addition, we have spent a considerable amount of time in the first few weeks of July just trying to get our heads around why interest rates are so low, what central bankers are trying to accomplish, and even learning about the concept of 'helicopter money,' whereby a central bank prints money and puts this money directly into the real economy."
I tried to take a little risk off the table today - hard to do in a world of near 0% short-term rates. Lightened up on EM debt and shifted a bit from DODBX to RPGAX. Despite a much higher ER, second is much more broadly diversified. Rearranging furniture on the deck of the Titanic?