Having trouble finding a Large Cap Blend fund? PRIMECAP Odyssey Stock Fund (
POSKX Quick Quote POSKX - Free Report) is a possible starting point. POSKX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance. Objective
We note that POSKX is a Large Cap Blend option, an area loaded with different options. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a " buy and hold " mindset. Additionally, blended funds mix large, more established firms into their portfolios, giving investors exposure to value and growth opportunities.
History of Fund/Manager
Primecap Odyssey is responsible for POSKX, and the company is based out of Pasadena, CA. The PRIMECAP Odyssey Stock Fund made its debut in November of 2004 and POSKX has managed to accumulate roughly $7.27 billion in assets, as of the most recently available information. A team of investment professionals is the fund's current manager.
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 16.39%, and it sits in the middle third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 10.84%, which places it in the bottom 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. Compared to the category average of 19.23%, the standard deviation of POSKX over the past three years is 20.7%. Over the past 5 years, the standard deviation of the fund is 17.02% compared to the category average of 15.67%. This makes the fund more volatile than its peers over the past half-decade.
Investors should note that the fund has a 5-year beta of 1.07, which means it is hypothetically more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. The fund has produced a negative alpha over the past 5 years of -1.18, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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 mostly on equities that are traded in the United States.
The mutual fund currently has 78.82% of its holdings in stocks, which have an average market capitalization of $149.85 billion. The fund has the heaviest exposure to the following market sectors:
Technology Industrial Cyclical Health Finance
With turnover at about 8%, this fund is making fewer trades than the average comparable fund.
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, POSKX is a no load fund. It has an expense ratio of 0.65% compared to the category average of 0.96%. From a cost perspective, POSKX is actually cheaper than its peers.
While the minimum initial investment for the product is $2,000, investors should also note that each subsequent investment needs to be at least $100.
Overall, PRIMECAP Odyssey Stock Fund ( POSKX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, PRIMECAP Odyssey Stock Fund ( POSKX ) looks like a somewhat average choice for investors right now.
This could just be the start of your research on POSKXin the Large Cap Blend 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. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.