If you’ve been stuck searching for Large Cap Growth funds, you might want to consider passing on by T. Rowe Price All-Cap Opportunities Fund (PRWAX) as a possibility. PRWAX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
PRWAX is classified in the Large Cap Growth segment by Zacks, an area full of possibilities. Companies are usually considered to be large-cap if their stock market valuation is more than $10 billion. Large Cap Growth mutual funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers.
History of Fund/Manager
PRWAX is a part of the T. Rowe Price family of funds, a company based out of Baltimore, MD. T. Rowe Price All-Cap Opportunities Fund debuted in September of 1985. Since then, PRWAX has accumulated assets of about $7.22 billion, according to the most recently available information. Justin White is the fund’s current manager and has held that role since April of 2016.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 9.75%, and is 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 17.86%, which places it in the bottom third during this time-frame.
It is important to note that the product’s returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund’s [%] sale charge. If sales charges were included, total returns would have been lower.
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. PRWAX’s standard deviation over the past three years is 12.23% compared to the category average of 12.53%. Over the past 5 years, the standard deviation of the fund is 15.05% compared to the category average of 14.61%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 0.96, so it is likely going to be less volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio’s performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. With a negative alpha of -3.24, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.