4 / 5 Stars
5 5 4 5 3
Zacks Investment Research
Standard & Poor's
5 / 5 Stars
#92 in Large Growth
U.S. News evaluated 468 Large Growth Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned 30.62 percent over the past year, 16.22 percent over the past three years, and 22.37 percent over the past five years.
|Trailing Returns||Updated 01.31.2014|
|Year to date||0.6%|
|3 Years (Annualized)||16.2%|
|5 Years (Annualized)||22.4%|
|10 Years (Annualized)||N/A|
For investors in PRIMECAP Odyssey Growth, 2011 will be anything but dull.
As of February 05, 2014, the fund has assets totaling almost $3.98 billion invested in 119 different holdings. Its portfolio consists primarily of shares of large- and mid-cap companies.
As of the end of 2010, the fund had a whopping 40 percent of its stock holdings tucked away in healthcare companies. On the heels of a volatile 2010, the healthcare industry still isn't out of the political limelight, and the climate in Washington could have major impacts on this fund's returns. Politics aside, this hefty sector weighting weds the fund's performance to a narrow corner of the market, and that's always a risk. Still, in the past, sector bets have helped rather than hurt this fund. As of early December, its annualized returns for the trailing three-year period landed it in the top 10 percent of Morningstar's large-growth category.
Broadly, calling this a "large growth" fund is a bit of a misnomer. While management certainly puts an emphasis on growth--technology-heavy business models are quite popular in this fund's portfolio--there is also a sharp concern for valuations. Says Morningstar: "The managers look for swiftly growing firms, but they like to buy them when they're out of favor." Meanwhile, compared with its large growth peers, this fund relies heavily on mid-cap companies, which account for nearly a third of its portfolio. Another features that sets this fund apart is management's buy-and-hold discipline. Management certainly makes opportunistic sector bets, but that doesn't necessarily translate into high trading volume. The fund's turnover ratio, for instance, sits at a rock-bottom 5 percent. By comparison, a fund that replenishes its entire portfolio once a year would have a ratio of 100 percent. The fund has returned 30.62 percent over the past year, 16.22 percent over the past three years, and 22.37 percent over the past five years.
According to the fund's prospectus: "The Fund invests mainly in stocks of U.S. companies, emphasizing those companies with above average earnings growth potential that is not reflected in their current market prices. These stocks typically provide little current income. The Fund's portfolio consists predominantly of mid- and large-cap stocks and may include stocks of foreign companies. Through its research, [management] identifies stocks that it believes over a three- to five-year time frame will outperform the Standard & Poor's 500 Index, a widely recognized benchmark of U.S. stock market performance that is dominated by the stocks of large U.S. companies."
Role in Portfolio
Morningstar calls this fund a "core" holding.
A team of five managers runs the fund.
PrimeCap Odyssey Growth Fund has an expense ratio of 0.65 percent.
Like all stock funds, this one comes with some risks.