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Participant ○○○

Re: VPMAX - time to load up?


@chang wrote:
Are these > 1% positions in the fund? And would you mind stalking someone else for a while. Sheesh.

Are you saying I can not comment on your public post? 
It's should be ok for *anyone* to provide a valid counter argument with what you posted?
Anyone can learn from others...

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Participant ○○○

Re: VPMAX - time to load up?


@chang wrote:

Are these > 1% positions in the fund? 0.5%? 0.1%? What are they on 5/10/2020?

 


Why does this matter? 
You are a long term holder of the fund and what they held prior to 5/10 (even if its a quarter end disclosure) will impact your personal returns of the fund.

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Participant ○○○

Re: VPMAX - time to load up?


@rhythmmethod wrote:

I'm holding POAGX. It used to also have outsized positions to airlines. I noticed on their site (and updated M* but not on Barron’s) that they are no longer holding them


I hold POAGX and they still do hold airline stocks (and cruise lines). 
They may not be in the top 10 in this particular fund due to their recent collapse in stock price.
Go click on 'full portfolio holdings' on their website and see for yourself.

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Contributor ○

Re: VPMAX - time to load up?

Month-end 10 largest holdings VPMAX

(40.70% of total net assets) as of 03/31/2020 

1Eli Lilly & Co.
2Biogen Inc.
3Adobe Inc.
4Microsoft Corp.
5Alphabet Inc.
6Amgen Inc.
7Texas Instruments Inc.
8Alibaba Group Holding Ltd.
9Micron Technology Inc.
10AstraZeneca plc
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Re: VPMAX - time to load up?


@chang wrote:

I haven’t looked at the non-VG Primecap funds, but I assume they’re clones of the VG funds (or vice versa). I have looked at VPMAX, VHCAX and (to a lesser extent) VPCCX a few times lately. I don’t think the portfolios look problematic. I plan to stick with them, for the near-term anyway.

One of the few LCG funds that isn’t 30% FAANGS. If you want to be overweight FAANGs now, then this isn’t the fund for you.

A couple of their funds got hit by the crash of a biotech top holding last year (Nektar?) so they’ve had a few streaks of bad luck.


There is no question that Primecap Management is one of the best. Their process of growth at a reasonable price (GARP) has been solid and consistent. Because of their high conviction (41% of total net assets in top 10 holdings) and low turnover (VPMAX 5%), it will have periods of underperformance. Rod's post has the up to date information from Vanguard's website. If you are patient, I see no reason not to add to one of their funds. Based on history, you can almost convince yourself that since they are going through one of their underperforming periods, this is a good time to add.

Alternatively, you might want to look at Vanguard Dividend Growth VDIGX. LCB instead of LCG and a smoother ride. Instead of 41% of total net assets in the top 10 holdings, it has 33.5%. Like the Primecap fund's healthcare exceeds 20% of the portfolio, but Dividend Growth has far less in technology.

I have been in Vanguard Primecap funds for as long as I can remember. I have been in Vanguard Dividend Growth for many years. As I get older, my bias is toward a smoother ride, so I no longer reinvest dividends and capital gains in my Primecap Funds, but I do in Dividend Growth.

 

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Frequent Contributor

Re: VPMAX - time to load up?

QQQ easily beat VPMAX, VHCAX VPCCX for 1-3-5-10 years.

How about MACGX (chart)...wait, it's not Vanguard, never mind.

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Frequent Contributor

Re: VPMAX - time to load up?

One of my largest holdings is Vanguard PRIMECAP Adm,(VPMAX; I held it before it was in admiral shares, (VPMCX). Also, I have held Vanguard Capital Opportunity Adm, (VHCAX), but less an investment. On the other hand I have held Vanguard Dividend Growth Inv, (VDIGX) and a few years back almost allocated half my holdings into Vanguard PRIMECAP, but chose to leave it alone, now happy I did so. Along with some TRP funds and S&P index funds, this makes up the bulk of my equity in my main IRA.

I would agree that Vanguard PRIMECAP would be good for new investments.

@FD1001 wrote:

QQQ easily beat VPMAX, VHCAX VPCCX for 1-3-5-10 years.

Didn't want to add more info, but QQQ is what I will add, if we have another down market.

 

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Re: VPMAX - time to load up?

I recently moved from DODGX to Primecap core which is available in my 401k. Primemap core is blend compared to Primecap (VPMAX) which is growth. VPMAX is performing better than primecap core.

My concern with going all growth is - all funds are investing in same top 10 technology stocks and i might as well just buy QQQ (FAANGM) + Fidelity Biotech/ Vanguard Health care + Alibaba + Baidu.

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Re: VPMAX - time to load up?


@FD1001 wrote:

QQQ easily beat VPMAX, VHCAX VPCCX for 1-3-5-10 years.

How about MACGX (chart)...wait, it's not Vanguard, never mind.


Didn’t you buy MACGX on March 18th at 11.60?

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Re: VPMAX - time to load up?


@waffle wrote:

I recently moved from DODGX to Primecap core which is available in my 401k. Primemap core is blend compared to Primecap (VPMAX) which is growth. VPMAX is performing better than primecap core.

My concern with going all growth is - all funds are investing in same top 10 technology stocks and i might as well just buy QQQ (FAANGM) + Fidelity Biotech/ Vanguard Health care + Alibaba + Baidu.


I agree: most LCG funds look like a market-cap weighted LG index, and are grossly overweight FAANGs. But actually Primecap (all their funds) is not such an example. Of course they’re heavy in Tech & HC and I’m fine with that, but they’re no QQQ clone.

Jensen Growth JENIX is my other growth fund, and one of my best investments, now owned 13 years. It’s probably the ultimate non-QQQ growth fund because it requires its holdings to generate ROE > 15 for ten straight years (plus numerous other “quality” screens).

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Frequent Contributor

Re: VPMAX - time to load up?


@chang wrote:


I agree: most LCG funds look like a market-cap weighted LG index, and are grossly overweight FAANGs. But actually Primecap (all their funds) is not such an example. Of course they’re heavy in Tech & HC and I’m fine with that, but they’re no QQQ clone.

Jensen Growth JENIX is my other growth fund, and one of my best investments, now owned 13 years. It’s probably the ultimate non-QQQ growth fund because it requires its holdings to generate ROE > 15 for ten straight years (plus numerous other “quality” screens).


That's a great fund Jensen! I have JENSX, not the institutional shares and just a small holding. I would have invested more in the past if I had access to lower cost shares like I can with PRIMECAP for $50,000.

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Re: VPMAX - time to load up?

FK: JENSX/JENIX has been reducing their fees continually over the years, so I think your ER now is probably lower than what JENIX used to be. You can be satisfied with their customer stewardship.
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Explorer ○○○

Re: VPMAX - time to load up?

When I look at the Morningstar chart for Primecap POGRX it looks bad for 10, 5, 3 years and YTD compared to the index and the category. Does anyone disagree? When I look at the Lipper rankings for POGRX it looks very bad. Does anyone disagree? Thank you for your comments. 

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Re: VPMAX - time to load up?


@Warren1 wrote:

When I look at the Morningstar chart for Primecap POGRX it looks bad for 10, 5, 3 years and YTD compared to the index and the category. Does anyone disagree? When I look at the Lipper rankings for POGRX it looks very bad. Does anyone disagree? Thank you for your comments. 


I do not disagree. it has not held up as well as VPMAX for some time now, both are at a low point. If I were to sell, I'd trade into another equity fund.

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Frequent Contributor

Re: VPMAX - time to load up?

FWIW there is a long record of team management and succession here, average manager tenure > 20 years, and managers’ personal investments in the $ millions. Not every fund can say this. Not many at all...

Of course this will mean little to momentum traders, which is fine - our approaches do not intersect.

Hopefully everyone realizes that multi-year TR figures can be highly sensitive to start / end points as well as to short-term aberrations. Rolling returns are much more useful for analysis. (How quickly OAKIX went from 1-1-1-1-1-1 to 99-99-99-99-99-99!)

I don’t think the Primecap team is actually trying to lose money. At least I couldn’t find that objective anywhere in their filings.

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Contributor ○

Re: VPMAX - time to load up?

I noticed DODGX and OAKMX have 25% and 30% in financials.

While Primecap core (blend) and American Mutual (a value fund)  are 9 % and 10 % in financials. 

These firms (all 4 of them excellent) are taking very different view of future prospects of financials in current environment.

I guess it comes from their value vs growth orientation.

This is what makes investment so interesting.

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Frequent Contributor

Re: VPMAX - time to load up?

Waffle: I think you’ll find certain firms / managers are always heavy in financials. D&C for one (2008!), Bill Nygren for another (WM!).

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Explorer ○○○

Re: VPMAX - time to load up?

I have large chunks of my retirement in Vanguard Primecap, Capital Opportunity, and Primecap Core. I balance these growth holdings with positions in Vanguard Equity Income, Dividend Growth, Wellington, and to a much lesser extent Wellesley. For fun, I have little slices of this and that etf’s, including MGK. Firm believer in the Primecap team. Solid managers. They’re not always right, but who is?

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Re: VPMAX - time to load up?

Chang  - maybe you should define “load up”.  I say that because you own 20 - 30 funds, so I don’t see you investing heavily or meaningfully in anything.  

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Re: VPMAX - time to load up?


@cegibbs wrote:

Chang  - maybe you should define “load up”.  I say that because you own 20 - 30 funds, so I don’t see you investing heavily or meaningfully in anything.  


My top 6 funds cover > 50% of PV. “Load up” would mean > $300k which I consider a “top tier” fund holding.

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