Primecap Odyssey Aggressive Growth Fund Performance and Risks

The Primecap Odyssey Aggressive Growth Fund is a type of investment that's worth understanding. It's an actively managed fund that aims to provide long-term growth by investing in a mix of large and mid-cap stocks.

One of the key characteristics of this fund is its focus on growth stocks, which are companies that are expected to experience high growth rates in the future. The fund's managers look for companies with strong financials, competitive advantages, and talented leadership.

The fund has a relatively high expense ratio of 0.85%, which is higher than some other actively managed funds. However, the fund's managers believe that their research and analysis are worth the extra cost.

Investors in the Primecap Odyssey Aggressive Growth Fund can expect to take on a higher level of risk compared to more conservative investments. This is because the fund invests in a mix of growth stocks, which can be volatile and subject to market fluctuations.

Investing in the Primecap Odyssey Aggressive Growth Fund comes with some risks you should be aware of. Stock market risk is a major concern, as the fund's performance could be hurt by a decline in overall stock market prices.

Stock market cycles can be unpredictable, with periods of rising and falling prices. Historically, small- and mid-cap stocks have been more volatile in price than large-cap stocks, and growth stocks have tended to outperform the market in rising markets and underperform in declining markets.

You may also lose money due to sector-focus risk, foreign securities risk, or small- and mid-cap stocks risk. These risks are associated with investing in a significant portion of the fund's assets in one sector, foreign securities, or small- and mid-cap stocks.

Here's a summary of the risks:

The fund's fees and expenses are also something to consider. The management fee is 0.55%, and other expenses are 0.11%. The total annual fund operating expenses are 0.66%.

Investing in a fund always comes with some level of risk. The value of your investment can fluctuate widely, just like the overall stock market.

You may lose money by investing in the fund, and its performance could be hurt by several factors. Stock market risk is one of the main concerns, as the overall market can decline, causing the fund's value to drop.

Manager risk is another factor to consider, as poor security selection by the advisor can lead to underperformance compared to benchmarks or other funds. Historically, small- and mid-cap stocks have been more volatile in price than large-cap stocks, which can impact the fund's performance.

Growth stocks are also a concern, as they tend to be more volatile in price than the overall market and may underperform in declining markets. This pattern has held true in the past, but there's no guarantee it will continue.

Investing in a single sector can also increase the risk of potential monetary losses. This is because the fund's assets are concentrated in one area, making it more susceptible to market fluctuations.

Here are some specific risks associated with the fund:

These risks can be mitigated by diversifying your portfolio and doing thorough research before investing.

The management fee for POAGX is 0.55%. This fee is a significant portion of the overall expenses for the fund.

Other expenses, such as administrative costs, also eat into your returns, amounting to 0.11% of the fund's assets.

Acquired fund fees and expenses are surprisingly low, at 0.00%. This is a positive sign, indicating that the fund has managed to minimize these costs.

The total annual fund operating expenses applicable to investors are 0.66%. This is the sum of all the fees and expenses mentioned above.

Here's a breakdown of the fees and expenses for POAGX:

The expense ratio of POAGX is 0.65%, which falls within the medium range. This means that the fund's expenses are relatively average compared to other funds in its category.

The Performance Metrics section of the Primecap Odyssey Aggressive Growth Fund (POAGX) is where we get a sense of how the fund is doing. The Process Pillar is a key part of this, as it assesses the fund's performance objective and investment process.

The Process Pillar is our assessment of how sensible, clearly defined, and repeatable POAGX’s performance objective and investment process is for both security selection and portfolio construction. This is a crucial factor in determining the fund's potential for success.

The People Pillar is also important, as it evaluates the management team's experience and ability. High-quality management teams are more likely to deliver superior performance relative to their benchmarks and/or peers.

Assessing a fund's future performance can be a daunting task. POAGX's Process Pillar is a fundamental assessment of its performance objective and investment process, which is sensible, clearly defined, and repeatable.

The People Pillar is a crucial evaluation of the management team's experience and ability, which is essential for delivering superior performance.

High-quality management teams are more likely to outperform their benchmarks and peers. A parent organization's priorities can also impact a fund's future performance, as seen in the Parent Pillar rating.

A well-structured investment process and experienced management team can increase the chances of a fund's success.

Performance is a crucial aspect of any system or process. It's a measure of how well it's doing its job.

A good performance metric is one that accurately reflects the system's ability to meet its goals. For example, a website's response time is a key performance metric, and a slower response time can negatively impact user experience.

A slower response time can lead to higher bounce rates and lower conversion rates. In fact, a 1-second delay in response time can result in a 7% decrease in conversions.

The right performance metrics can help identify areas for improvement. For instance, if a website's response time is slow, it may indicate a need to optimize database queries or improve server configuration.

By monitoring and analyzing performance metrics, you can make data-driven decisions to optimize your system or process. This can lead to significant improvements in efficiency and productivity.

Let's take a closer look at the Net Income Ratio Analysis. The POAGX fund has a net income ratio of -0.39%, which is lower than the category low of -2.24%. This means that the fund is generating a loss, and it's not doing as well as the worst-performing funds in its category.

The category high for net income ratio is 2.75%, which is a much healthier figure. This indicates that some funds in the category are generating a decent return. POAGX's net income ratio puts it at a 30.72% rank within the category, meaning it's performing relatively better than many of its peers.

The Primecap Odyssey Aggressive Growth Fund is a type of mutual fund that invests in stocks with the goal of long-term growth.

It has a minimum initial investment requirement of $1,000, which is relatively low compared to other funds.

The fund is managed by a team of experienced investment professionals at Primecap Management Company, which has a proven track record in managing aggressive growth funds.

The fund's investment strategy involves investing in a mix of established and emerging companies with strong growth potential.

The fund's portfolio is typically diversified across various sectors and industries to minimize risk and maximize returns.

The Primecap Odyssey Aggressive Growth Fund has a portfolio composition that's worth taking a closer look at. A whopping 97.81% of the fund is allocated to stocks, making it a high-risk, high-reward investment.

This is evident in the fund's return range, with a low of 58.72% and a high of 100.23%. This level of volatility is not for the faint of heart, but for those willing to take on the risk, the potential rewards are substantial.

Breaking down the stock allocation, we see that it's comprised of a variety of asset classes, including cash, other, preferred stocks, convertible bonds, and bonds. However, the majority of the fund's assets are tied up in cash, making up 2.40% of the portfolio.

Here's a breakdown of the fund's asset allocation:

Asset allocation is a crucial aspect of portfolio composition, and it's interesting to see how it's structured in the POAGX fund. The fund has a significant weighting of 97.81% in stocks, which is a common approach for many investors looking for long-term growth.

This high allocation to stocks is reflected in the return figures, with a low of 58.72% and a high of 100.23%. These returns are impressive, especially considering the fund's overall performance.

The remaining 2.40% of the portfolio is allocated to cash, which provides a low-risk component and helps to stabilize the portfolio. The return on cash is relatively low, at 0.00% and 32.84% for the low and high returns, respectively.

The allocation to other assets, such as preferred stocks, convertible bonds, and bonds, is minimal, ranging from 0.00% to 2.40%. These assets provide diversification benefits but are not a significant component of the portfolio.

Here's a breakdown of the asset allocation in the POAGX fund:

Let's take a closer look at the top holdings in our portfolio.

Eli Lilly Co is the largest holding, making up 5.59% of the portfolio.

The top 10 holdings are quite diverse, with no single company dominating the list.

Micron Technology Inc is the second largest holding, accounting for 4.08% of the portfolio.

Rhythm Pharmaceuticals Inc is the third largest holding, making up 3.24% of the portfolio.

Here are the top 10 holdings in our portfolio:

It's worth noting that some of these holdings are in the tech and healthcare sectors, while others are in more traditional industries.

The Primecap Odyssey Aggressive Growth Fund has a history of paying dividends and distributions to its shareholders.

The fund's dividend history is a bit scattered, but we can see that it has paid ordinary dividends in December of each year since 2014, with the smallest amount being $0.003 in 2015 and the largest being $0.057 in 2014.

In addition to ordinary dividends, the fund has also paid capital gains distributions, with the first one recorded in 2010. The capital gains distributions have been paid in December of each year since then, and the amounts have varied widely, ranging from $0.011 in 2007 to $4.351 in 2024.

The fund has also paid capital gains distributions for short-term and long-term gains. Short-term capital gains distributions have been paid in amounts such as $0.017 in 2017 and $0.236 in 2014. Long-term capital gains distributions have been paid in much larger amounts, such as $2.775 in 2016 and $4.363 in 2024.

Here is a summary of the fund's dividend and distribution history:

It's worth noting that the fund's dividend and distribution history may not be a perfect indicator of future performance, but it can provide some insight into the fund's past behavior and potential for future income.

The Performance Chart section of the Primecap Odyssey Aggressive Growth Fund is a crucial aspect to consider when evaluating its potential for future performance.

The Process Pillar, one of the three fundamental pillars, assesses the fund's performance objective and investment process. This process is clearly defined and repeatable for both security selection and portfolio construction.

The People Pillar evaluates the management team's experience and ability, and high-quality teams have been shown to deliver superior performance relative to their benchmarks and/or peers.

The Parent Pillar rates the parent organization's priorities and whether they align with investors' interests.

Here's a summary of the three pillars and their respective ratings:

Meet Theo Kolokotrones, the Chairman of PRIMECAP Management Company, who has been working in investment management since 1970. He's been managing assets since 1979.

Kolokotrones co-founded PRIMECAP Management Company in September 1983, and he's been with the company ever since. As the lead manager, he's responsible for Vanguard Capital Opportunity and Odyssey Aggressive Growth fund.

Before joining PRIMECAP, Kolokotrones spent six years at Capital Research Company, where he held the position of Senior Vice President. He's also held portfolio management responsibilities since 1979.

Here's a quick rundown of Kolokotrones' education and experience:

Kolokotrones' experience and education make him a qualified and experienced fund manager.

In a worst-case scenario, the PrimeCap Odyssey Aggressive Growth Fund could experience significant losses due to its high-risk investment strategy.

The fund's focus on growth stocks means it's heavily invested in companies that are still in their early stages, which can be more volatile than established companies.

A downturn in the tech industry, which accounts for a significant portion of the fund's holdings, could have a major impact on the fund's performance.

The fund's high turnover rate, with over 90% of holdings turning over within a year, means it's constantly buying and selling stocks, which can lead to higher trading costs and potential losses.

The fund's use of leverage, with a debt-to-equity ratio of over 1, means it's taking on more risk than a similarly sized fund without leverage.