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.
In my opinion T. Rowe Price has a lot going for it.
When I compare TRP fund's to other funds in their category they seems to exhibit a better combination of higher alpha and lower beta in up and down markets making it easier for an individual investor to hold on through market gyrations.
Secondly, T. Rowe Price is an asset management company that is publicly traded ( as TROW) which makes it somewhat unique for a mutual fund company.
Here's an interesting long term chart of TROW and PRWCX:
Some investors might prefer to invest in the management companies that manage investments (mutual funds) of companies and TROW might be a consideration. I might suggest that when these asset managment companies under perform their Balanced funds (i.e. PRWCX compared to TROW) they are a great buying opportunity.
Right now TROW is trading at a 5.4% discount to PRWCX:
Here's an Article on the topic on Publicly Traded Assets Management Companies:
Thanks for the thoughts bee. Close to "solid gold" as far as being a well run shareholder friendly outfit. Now .... as a publicly traded company, how great is the chance some "activist" investor - say a Carl Icahn or a David Winters (or a small group of investors) - could get involved and attempt to "strip" some of the company value through structural changes? I'm not sophisticated enough to understand all the mechanizations these guys employ. However, I do know the net effect is usually to enrich stock holders near-term, while leaving a company "poorer" over the longer term. An extreme case was the fellow who essentially gutted Sunbeam many years ago - leaving nothing but the brand name intact.
I guess that's remote. The mere suggestion would likely send investors fleeing and the stock value diving.
Comments
When I compare TRP fund's to other funds in their category they seems to exhibit a better combination of higher alpha and lower beta in up and down markets making it easier for an individual investor to hold on through market gyrations.
Secondly, T. Rowe Price is an asset management company that is publicly traded ( as TROW) which makes it somewhat unique for a mutual fund company.
Here's an interesting long term chart of TROW and PRWCX:
Some investors might prefer to invest in the management companies that manage investments (mutual funds) of companies and TROW might be a consideration. I might suggest that when these asset managment companies under perform their Balanced funds (i.e. PRWCX compared to TROW) they are a great buying opportunity.
Right now TROW is trading at a 5.4% discount to PRWCX:
Here's an Article on the topic on Publicly Traded Assets Management Companies:
Buy The Fund Managers, Not Their Funds
I guess that's remote. The mere suggestion would likely send investors fleeing and the stock value diving.