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.
Donate through PayPal
rare long-form interview with primecap (about once every 5 years)
some good & reassuring insights never expressed before, but i felt morningstar missed a key question : 'with all partners taking a similar GARP selection approach, how will primecap execute risk-weighted concentrated investing in a new era (interest rates ending a 3+ decade decline) ?' a partial response was that primecap spends more time on sell decisions.
this is an interesting question, because it also affects other very good active GARP equity managers like Giroux at T.Rowe Price (who adjusts some with other assets). the most successful GARP investors succeeded by holding even when the stocks looked overvalued and far past the initial buying range, which got turbocharged in a multi-generational interest rate decline.