T. ROWE PRICE CAPITAL APPRECIATION FUND TIES RECORD FOR LONG-TERM PERFORMANCE

Rhea-AI Summary

T. Rowe Price (TROW) announced that the T. Rowe Price Capital Appreciation Fund (PRWCX) managed by David Giroux, CFA®, finished 2023 as having beaten its Morningstar peer group average for 16 consecutive years, tying the record for the most consecutive calendar years a U.S. equity or multi-asset fund has done so under the same portfolio manager. Giroux has more than 25 years of investment industry experience and has been the fund's portfolio manager since June 30, 2006. He has also won 18 Best Fund awards from Lipper. The fund began operation in 1986 and seeks long-term capital appreciation by investing primarily in a blended portfolio of common and preferred stocks as well as fixed income and other securities to help preserve principal value. Giroux also manages the T. Rowe Price Capital Appreciation Equity ETF (TCAF) and co-manages the T. Rowe Price Capital Appreciation and Income Fund (PRCFX).

Insights

Market Research Analyst

The performance of David Giroux's T. Rowe Price Capital Appreciation Fund is a testament to the fund's robust investment strategy and Giroux's expertise in portfolio management. The record-tying streak of outperforming the Morningstar peer group average for 16 years may instill confidence among existing and potential investors, reinforcing the fund's reputation for consistency and risk-adjusted returns. An important factor for investors to consider is the fund's closure to new investors since 2014, which may have contributed to more stable asset management and less cash flow volatility, potentially benefiting long-term performance.

Financial Analyst

David Giroux's track record, including multiple Morningstar and Lipper awards, is indicative of his ability to navigate market cycles and adapt to changing economic conditions. The significance of this achievement lies in its rarity, with the Pioneer Fund being the only other to have matched this performance decades ago. Investors should note the implications of such a consistent performance, as it may suggest a well-defined investment process capable of delivering strong risk-adjusted returns. However, it's crucial to analyze the fund's underlying assets and sector allocations to understand the drivers of its outperformance and assess the sustainability of this trend in the context of current market conditions.

Investment Strategist

David Giroux's approach of 'investing against the grain' and exploiting market inefficiencies speaks to a contrarian investment philosophy which can lead to differentiated returns, particularly in turbulent or overvalued markets. His dual role as head of Investment Strategy and chief investment officer for T. Rowe Price Investment Management suggests a broad influence on the firm's overall investment outlook. As market dynamics evolve, Giroux's strategy and the fund's performance should be monitored for their ability to continue capitalizing on inefficiencies and preserving capital, especially during downturns. The fund's long-term approach may be particularly appealing in an environment where short-term volatility and uncertainty are prevalent.

David Giroux's fund has beaten its Morningstar peer group average for 16 consecutive years

BALTIMORE, Jan. 8, 2024 /PRNewswire/ -- T. Rowe Price (NASDAQ-GS: TROW), a global investment management firm, announced today that the T. Rowe Price Capital Appreciation Fund (Ticker: PRWCX)  managed by David Giroux, CFA^®, finished 2023 as having beaten its Morningstar peer group average for 16 consecutive years, tying the record for the most consecutive calendar years a U.S. equity or multi-asset fund has done so under the same portfolio manager. Based on T. Rowe Price's analysis, the only other fund to accomplish this was the Pioneer Fund, managed by the late Philip Carret, who established the record between 1938-1953.¹

This assessment of Giroux's record reviewed U.S.-domiciled funds and exchange traded funds (ETFs) within the Morningstar Direct database that have at least a 15-year track record under the same portfolio manager and still exist today. It dates to 1925, the earliest year any fund in the universe began. The analysis then reviewed funds with greater than or equal to 15 consecutive years of beating their peer group average and identified any funds that maintained that streak.

The T. Rowe Price Capital Appreciation Fund, which has been closed to new investors since June 30, 2014, began operation in 1986 and seeks long-term capital appreciation by investing primarily in a blended portfolio of common and preferred stocks as well as fixed income and other securities to help preserve principal value. Giroux has been the fund's portfolio manager since June 30, 2006.    

Giroux has more than 25 years of investment industry experience, beginning in 1998 when he became an investment analyst covering the industrials, building products, and automotive sectors for T. Rowe Price. He is a six-time nominee and two-time winner of Morningstar's Fund Manager of the Year award². He has also won 18 Best Fund awards from Lipper³. In addition to his portfolio management duties, he also serves as head of Investment Strategy and chief investment officer for T. Rowe Price Investment Management (TRPIM).

The T. Rowe Price Capital Appreciation Fund is one of three vehicles within the Capital Appreciation suite. Giroux also manages the T. Rowe Price Capital Appreciation Equity ETF (Ticker: TCAF), which launched in June 2023, and he co-manages the T. Rowe Price Capital Appreciation and Income Fund (Ticker: PRCFX), which launched in November 2023.

QUOTES

David Giroux, Portfolio Manager, T. Rowe Price Capital Appreciation Fund
Head of Investment Strategy and Chief Investment Officer for TRPIM 
"I'm very proud of the Capital Appreciation Fund's long-term performance, and I'm grateful for our clients who have maintained confidence in us for so many years. Every day, I have the privilege of leading an amazingly talented team as we apply our rigorous investment process toward investing against the grain, by pursuing strong risk-adjusted returns and seeking to exploit market inefficiencies. I have immense appreciation for everyone involved and for the steadfast support from T. Rowe Price.  I love coming to work every day.  Delivering for our clients is truly motivating."

Stephon Jackson, CFA^® , Head of TRPIM
"With no other portfolio manager achieving this record in 70 years, David's Capital Appreciation Fund performance is truly remarkable. David has consistently demonstrated exceptional work ethic, intellect, and commitment to shareholders. I applaud his talent and humility, and I congratulate him on this achievement. We're extremely grateful for his dedication to T. Rowe Price and his unwavering care for the clients he serves."

ABOUT T. ROWE PRICE

Founded in 1937, T. Rowe Price (NASDAQ: TROW) helps people around the world achieve their long-term investment goals. As a large global asset management company known for investment excellence, retirement leadership, and independent proprietary research, the firm is built on a culture of integrity that puts client interests first. Investors rely on the award-winning firm for its retirement expertise and active management approach of equity, fixed income, alternatives, and multi-asset investment capabilities. T. Rowe Price manages USD $1.39 trillion in assets under management as of November 30, 2023, and serves millions of clients globally. News and other updates can be found on Facebook, Instagram, LinkedIn, X, YouTube, and troweprice.com/newsroom.

Consider the investment objectives, risks, and charges and expenses carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information visit troweprice.com. Read it carefully.

All investing is subject to risk, including the possible loss of principal.

Past performance cannot guarantee future results.

This press release is for informational purposes only; references to securities should not be considered an offer or solicitation to buy or sell the securities.

¹ Based on a T. Rowe Price analysis of calendar year returns for funds domiciled in the U.S. with greater than or equal to 15 consecutive years of beating their peer group average while under the management of the same portfolio manager.

² Established in 1988, the Morningstar Fund Manager of the Year award recognizes portfolio managers who demonstrate excellent investment skill and the courage to differ from the consensus to benefit investors. The Fund Manager of the Year award winners are chosen based on research and in-depth qualitative evaluation by Morningstar's Manager Research Group. To qualify for the award, managers' funds must have not only posted impressive returns for the year, but the managers also must have a record of delivering outstanding long-term risk-adjusted performance and of aligning their interests with shareholders'. Managers' funds must currently have a Morningstar Analyst Rating™ of Gold or Silver. David Giroux won the award for Allocation Funds in 2012 and Allocation/Alternative Funds in 2017.

Morningstar's Manager Research Group consists of various wholly owned subsidiaries of Morningstar, Inc., including, but not limited to, Morningstar Research Services LLC. Morningstar's Manager Research Group produces various ratings including the Morningstar Analyst Rating for funds and the Morningstar Quantitative Rating for funds. The Analyst Rating is derived from a qualitative assessment process performed by a manager research analyst, whereas the Morningstar Quantitative Rating uses a machine-learning model based on the decision-making processes of Morningstar's analysts, their past ratings decisions, and the data used to support those decisions. In both cases, the ratings are forward-looking assessments and include assumptions of future events, which may or may not occur or may differ significantly from what was assumed. The Analyst Ratings and Quantitative Ratings are statements of opinions, subject to change, are not to be considered as guarantees, and should not be used as the sole basis for investment decisions.

©2024 Morningstar, Inc. All Rights Reserved.

³ The T. Rowe Price Capital Appreciation Fund received the 2023 Lipper Fund Classification Award for Best Mixed-Asset Target Allocation Growth Fund over the 10-year period ended 12/31/2022, the 2022 Lipper Fund Classification Award for Best Mixed-Asset Target Allocation Growth Fund over the 10-year period ended 12/31/2021, the 2021 Lipper Fund Classification Award for Best Mixed-Asset Target Allocation Growth Fund over the 10-year period ended 12/31/2020, the 2020 Lipper Fund Classification Award for Best Mixed-Asset Target Allocation Growth Fund over the 10-year period ended 12/31/2019, the 2019 Lipper Fund Classification Award for Best Mixed-Asset Target Allocation Growth Fund over the 10-year period ended 12/31/2018, the 2018 Lipper Fund Classification Award for Best Mixed-Asset Target Allocation Growth Fund over the 10-year period ended 12/31/2017, the 2017 Lipper Fund Classification Award for Best Mixed-Asset Target Allocation Growth Fund over the 10-year period ended 12/31/2016, the 2016 Lipper Fund Classification Award for Best Mixed-Asset Target Allocation Growth Fund over the 3-year, 5-year, and 10-year periods ended 12/31/2015, the 2015 Lipper Fund Classification Award for Best Mixed-Asset Target Allocation Growth Fund over the 10-year period ended 12/31/14 , the 2014 Lipper Fund Classification Award for Best Mixed-Asset Target Allocation Growth Fund over the 10-year period ended 12/31/2013, the 2013 Lipper Fund Classification Award for Best Mixed-Asset Target Allocation Growth Fund over the 10-year period ended 12/31/2012, the 2012 Lipper Fund Classification Award for Best Mixed-Asset Target Allocation Growth Fund over the 10-year period ended 12/31/2011, the 2011 Lipper Fund Classification Award for Best Mixed-Asset Target Allocation Growth Fund over the 10-year period ended 12/31/2010, the 2010 Lipper Fund Classification Award for Best Mixed-Asset Target Allocation Growth Fund over the 5-year and 10-year periods ended 12/31/2009, and the 2009 Lipper Fund Classification Award for Best Mixed-Asset Target Allocation Growth Fund over the 10-year period ended 12/31/2008.

Rankings for other periods differ. For Lipper Best Individual Funds, the calculation periods extend over 36, 60, and 120 months. The highest Lipper Leader for Consistent Return (Effective Return) value within each eligible classification determines the fund classification winner over 3, 5, or 10 years as of the period-end and no other time periods. Only one share class (the one with the best Lipper Leader score) is used for each portfolio in determining asset class and overall awards. A high Lipper rating does not necessarily imply that a fund had the best total performance or that the fund achieved positive results for that period. Lipper ratings and Lipper Fund Awards are not intended to predict future results. For a detailed explanation, please review the Lipper Leaders Methodology document on lipperalpha.financial.thomsonreuters.com/lipper.

From Thomson Reuters Lipper Awards, © 2024 Thomson Reuters. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution, or retransmission of this Content without express written permission is prohibited.

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SOURCE T. Rowe Price Associates, Inc.

FAQ

Who manages the T. Rowe Price Capital Appreciation Fund and what is the ticker symbol?

The T. Rowe Price Capital Appreciation Fund (PRWCX) is managed by David Giroux, CFA®.

What is the investment objective of the T. Rowe Price Capital Appreciation Fund?

The fund seeks long-term capital appreciation by investing primarily in a blended portfolio of common and preferred stocks as well as fixed income and other securities to help preserve principal value.

When did David Giroux become the portfolio manager for the T. Rowe Price Capital Appreciation Fund?

David Giroux has been the fund's portfolio manager since June 30, 2006.

What other funds does David Giroux manage?

David Giroux also manages the T. Rowe Price Capital Appreciation Equity ETF (TCAF) and co-manages the T. Rowe Price Capital Appreciation and Income Fund (PRCFX).

How many Best Fund awards has David Giroux won from Lipper?

David Giroux has won 18 Best Fund awards from Lipper.