We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is PRIMECAP Odyssey Growth Fund (POGRX) a Strong Mutual Fund Pick Right Now?
Read MoreHide Full Article
If investors are looking at the Large Cap Growth fund category, PRIMECAP Odyssey Growth Fund (POGRX - Free Report) could be a potential option. POGRX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We classify POGRX in the Large Cap Growth category, an area rife with potential choices. Large Cap Growth funds invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. To be considered large-cap, companies must have a market cap over $10 billion.
History of Fund/Manager
Primecap Odyssey is based in Pasadena, CA, and is the manager of POGRX. Since PRIMECAP Odyssey Growth Fund made its debut in November of 2004, POGRX has garnered more than $12.83 billion in assets. A team of investment professionals is the fund's current manager.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 12.46%, and it sits in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 16.05%, which places it in the middle third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. POGRX's standard deviation over the past three years is 16.88% compared to the category average of 13.76%. The standard deviation of the fund over the past 5 years is 16.19% compared to the category average of 13.57%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. In POGRX's case, the fund lost 47.42% in the most recent bear market and outperformed its peer group by 2%. This makes the fund a possibly better choice than its peers during a sliding market environment.
Even still, the fund has a 5-year beta of 1.21, so investors should note that it is hypothetically more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. POGRX's 5-year performance has produced a negative alpha of -0.93, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is principally on equities that are traded in the United States.
Currently, this mutual fund is holding 86.12% stock in stocks, with an average market capitalization of $93.02 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Health
Industrial Cyclical
With turnover at about 8%, this fund makes fewer trades than the average comparable fund.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, POGRX is a no load fund. It has an expense ratio of 0.64% compared to the category average of 1.06%. From a cost perspective, POGRX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $2,000; each subsequent investment needs to be at least $100.
Bottom Line
Overall, PRIMECAP Odyssey Growth Fund ( POGRX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, PRIMECAP Odyssey Growth Fund ( POGRX ) looks like a good potential choice for investors right now.
This could just be the start of your research on POGRXin the Large Cap Growth category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is PRIMECAP Odyssey Growth Fund (POGRX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Large Cap Growth fund category, PRIMECAP Odyssey Growth Fund (POGRX - Free Report) could be a potential option. POGRX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We classify POGRX in the Large Cap Growth category, an area rife with potential choices. Large Cap Growth funds invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. To be considered large-cap, companies must have a market cap over $10 billion.
History of Fund/Manager
Primecap Odyssey is based in Pasadena, CA, and is the manager of POGRX. Since PRIMECAP Odyssey Growth Fund made its debut in November of 2004, POGRX has garnered more than $12.83 billion in assets. A team of investment professionals is the fund's current manager.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 12.46%, and it sits in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 16.05%, which places it in the middle third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. POGRX's standard deviation over the past three years is 16.88% compared to the category average of 13.76%. The standard deviation of the fund over the past 5 years is 16.19% compared to the category average of 13.57%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. In POGRX's case, the fund lost 47.42% in the most recent bear market and outperformed its peer group by 2%. This makes the fund a possibly better choice than its peers during a sliding market environment.
Even still, the fund has a 5-year beta of 1.21, so investors should note that it is hypothetically more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. POGRX's 5-year performance has produced a negative alpha of -0.93, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is principally on equities that are traded in the United States.
Currently, this mutual fund is holding 86.12% stock in stocks, with an average market capitalization of $93.02 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Health
- Industrial Cyclical
With turnover at about 8%, this fund makes fewer trades than the average comparable fund.Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, POGRX is a no load fund. It has an expense ratio of 0.64% compared to the category average of 1.06%. From a cost perspective, POGRX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $2,000; each subsequent investment needs to be at least $100.
Bottom Line
Overall, PRIMECAP Odyssey Growth Fund ( POGRX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, PRIMECAP Odyssey Growth Fund ( POGRX ) looks like a good potential choice for investors right now.
This could just be the start of your research on POGRXin the Large Cap Growth category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.