Advertisement
Kip 25

Primecap Odyssey Growth Is All Action, No Talk

The managers of this Kiplinger 25 fund prefer to stay out of the limelight.

The managers who run Primecap Odyssey Growth (POGRX)—a member of the Kiplinger 25—are some of the best stock pickers in the country. But you won't see them quoted in newspapers or talking on TV. They'd rather focus on their jobs than talk to the press. We can't complain. Over the past 12 months, Odyssey Growth shot past its peers (funds that invest in large, growing firms). It beat Standard & Poor's 500-stock index by 13.6 percentage points.

Advertisement - Article continues below

The fund hit the market's sweet spot, thanks to a 33% stake in technology stocks. Shares in graphics-chip maker Nvidia climbed 128% over the past 12 months. Memory- and storage-product maker Micron Technology gained 92%, and ASML Holding—which makes photolithography tools used to make smaller, next-generation semiconductor chips—rose 52%.

Odyssey Growth also has almost one-third of its assets invested in health care shares. Two standouts over the past year include medical-device makers Abiomed, which soared 134%, and Insulet, which increased 77%.

The fund's five comanagers invest in growing companies that trade at bargain prices. They look for a catalyst—the introduction of a new product, the arrival of a new executive or a corporate restructuring—that could push the stock higher. They are patient about waiting for a stock to turn around, and after it does, they typically hold for the long term. The fund's 5% turnover ratio—meaning that roughly 5% of holdings, on average, are replaced in a year's time—is a fraction of the typical 58% turnover ratio of its peers. Almost one-fifth of Odyssey Growth's 134 stocks have been in the portfolio since the fund opened in 2004, including drug companies Eli Lilly and Amgen.

Fund Updates

Investors who buy shares in Oakmark International for the first time must now buy directly from the firm. The fund is closed to new investors at most brokerage firms, including Fidelity and Schwab. If you already own shares, this news doesn't affect you. You can still buy shares through your brokerage firm or directly from Oakmark.

Pimco Income's D shares become A shares at the end of March. The expense ratio, 0.90%, remains the same. If you own the shares, hold on to them. But given the switch (and potential load for new investors), we are re-evaluating the fund.

Advertisement
Advertisement

Most Popular

Medicare Basics: 11 Things You Need to Know
Medicare

Medicare Basics: 11 Things You Need to Know

There's Medicare Part A, Part B, Part D, medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare --…
September 16, 2020
5 Unfortunate Estate Planning Myths You Probably Believe
estate planning

5 Unfortunate Estate Planning Myths You Probably Believe

These all-too-common misconceptions can steer your estate plans in the wrong direction right from the start. Here’s how to overcome them and tips to b…
September 17, 2020
Election 2020: Joe Biden's Tax Plans
taxes

Election 2020: Joe Biden's Tax Plans

With the economy in trouble, tax policy takes on added importance in the 2020 presidential election. So, let's take a look at what Joe Biden has said …
September 18, 2020

Recommended

10 of the Best Target-Date Fund Families
mutual funds

10 of the Best Target-Date Fund Families

The best target-date funds are a 'set it and forget it' approach to your retirement, but which fund family should you trust your money?
September 17, 2020
Best Bond Funds for Every Need
Investing for Income

Best Bond Funds for Every Need

In a changing market, it’s important to remember why we hold bonds in the first place.
September 15, 2020
How to Build a Bond Portfolio
Becoming an Investor

How to Build a Bond Portfolio

No single bond (or even bond fund) can do it all. We'll help you match your goals with appropriate fixed-income picks.
August 27, 2020
Time to Buy Japanese Shares?
Foreign Stocks & Emerging Markets

Time to Buy Japanese Shares?

In a weak global economy, T. Rowe Price Japan finds firms with healthy balance sheets.
August 27, 2020