T. Rowe Price Capital Appreciation Fund

Scorecard
5 / 5 Stars
Lipper
5 5 4 5 2
Zacks Investment Research
4 (Sell)
Standard & Poor's
4 / 5 Stars
TheStreet.com
B- (Buy)

U.S. News evaluated 247 Moderate Allocation Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

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Note: Profile written for different share class.

Performance

The fund has returned 19.06 percent over the past year, 12.09 percent over the past three years, 19.86 percent over the past five years, and 8.58 percent over the past decade. 

Trailing Returns Updated 02.28.2014
Year to date 2.4%
1 Year 19.1%
3 Years (Annualized) 12.1%
5 Years (Annualized) 19.9%
10 Years (Annualized) 8.6%

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Summary

T. Rowe Price Capital Appreciation's mix of equity and fixed-income investing has served it well over the years. 

As of March 05, 2014, the fund has assets totaling almost $19.27 billion invested in 289 different holdings. Its portfolio consists of a mix of stocks and bonds.

As a balanced fund, T. Rowe Price Capital Appreciation owns both stocks and bonds. On the stock side, the fund is fairly diversified by sector. Respectable performance from Danaher Corporation, which as of the end of the first quarter was among its top holdings, has helped boost returns in 2011. When it comes to bonds, management has shown a strong preference recently for corporate fare. As of the end of the first quarter, 80 percent of its bond holdings were comprised of U.S. corporate debt; convertible bonds accounted for another 14 percent. Management takes on substantial credit risk with its bonds, with only around 10 percent of them qualifying as investment-grade. Lately, management has been holding onto a fairly substantial cash stake. The fund has returned 19.06 percent over the past year and 12.09 percent over the past three years. 

Over time, this fund has proved to be an all-weather product. Since 2001, it has only finished one year in the bottom half of its Morningstar category. As of the end of April, its trailing 10- and 15-year returns both landed it in the top 2 percent of that same category. The fund has returned 19.86 percent over the past five years and 8.58 percent over the past decade. 

Investment Strategy

According to the fund's prospectus: "The fund`s approach differs from that of many other funds. We work as hard to reduce risk ... and may seek to realize gains rather than lose them in market declines. In addition, we search for attractive risk/reward values among all types of securities. The portion of the fund invested in a particular type of security, such as common stocks, results largely from case-by-case investment decisions, and the size of the fund`s cash reserves may reflect the manager`s ability to find companies that meet valuation criteria rather than his market outlook."

Role in Portfolio

Morningstar calls the fund a "core" holding.

Management

David Giroux manages the fund.

Fees

T. Rowe Price Capital Appreciation Fund has an expense ratio of 1.02 percent. 

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Risk

Through a mix of stocks and bonds, management looks to smooth out risks.

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Fund Opinions

The fund's Value Line Overall Rank, a measure of risk-adjusted performance and relative growth in fund returns, is 2 on a scale of 1 to 5, with 1 being the best and 5 the worst.

Value Line 2014-03-12

The fund's Value Line Growth Persistence rank, which awards funds that consistently outperform their broad universes, is 3 for one year, 3 for five years, and 2 for 10 years. Scores are on a 1 to 5 scale, with 1 being the best and 5 the worst.

Value Line 2014-03-12

The fund's Value Line Risk Rank, a measure of volatility, is 2 on a scale of 1 to 5, with 1 being the least volatile and 5 the most.

Value Line 2014-03-12

The fund appears on the 2011 Money 70 list of recommended mutual and exchange-traded funds.

Money 70 2011-01-21

Morningstar gives this fund a stewardship rating of B on a scale of A to F, saying: "On most fronts, this offering looks good on stewardship, benefiting from a top-rate investment culture, low fees, and a spotless regulatory history. If management invested more of its own money and if it had a more independent board of directors, the fund would score even more highly." 

Morningstar 2011-06-12

Fund family: In the annual Lipper/Barron's Fund Families Survey of 2010, T. Rowe Price ranks 12 out of 57 fund families surveyed. 

2011-06-12

Morningstar gives this fund a stewardship rating of B on a scale of A to F, saying: "On most fronts, this offering looks good on stewardship, benefiting from a top-rate investment culture, low fees, and a spotless regulatory history. If management invested more of its own money and if it had a more independent board of directors, the fund would score even more highly." 

Morningstar 2011-06-12

Fund family: In the annual Lipper/Barron's Fund Families Survey of 2010, T. Rowe Price ranks 12 out of 57 fund families surveyed. 

2011-06-12