Primecap Odyssey Growth Investment Strategy and Performance

The Primecap Odyssey Growth investment strategy is built around a combination of quality, growth, and value. It's a unique approach that has yielded impressive results.

The team at Primecap emphasizes the importance of business quality, focusing on companies with strong competitive advantages, talented management, and robust financials.

This focus on quality has led to a portfolio that's often filled with well-established companies in the consumer staples, healthcare, and technology sectors.

Primecap Odyssey Growth has a long-term perspective, with a time horizon that spans multiple years or even decades.

The Fund invests primarily in the common stocks of U.S. companies, focusing on those with the potential for above average earnings growth.

The Advisor, PRIMECAP Management Company, uses a bottom-up stock selection process to identify stocks that have above average growth aspects or attributes contributing to accelerated earnings growth.

These stocks typically provide little current income, but the Advisor seeks companies that will grow faster and/or be more profitable than their current market valuations suggest.

The Advisor looks for companies with asset values not adequately reflected in their stock prices and may sell a stock if its market price appears to have risen above its fundamental value.

The Fund may invest in stocks across all market sectors and market capitalizations, including small-capitalization stocks, which account for a significant portion of its assets.

The Advisor maintains a long-term focus, attempting to identify stocks that will outperform the S&P 500 index over a three-to five-year time frame.

You may lose money by investing in the PrimeCap Odyssey Growth Fund, and its share price and total return can fluctuate wildly, just like the overall stock market.

The Fund's performance can be hurt by stock market risk, which means the chance that stock prices overall will decline.

Manager risk is another factor, where the Advisor's poor security selection can lead to underperformance relative to benchmarks or other funds.

Investing in the Fund also comes with investment style risk, which means that returns from the mix of small-, mid-, and large-cap stocks in the portfolio may trail returns from the overall stock market.

Here are some of the specific risks involved:

Investing in the Fund comes with various risks that can impact your returns. You may lose money due to stock market risk, where the overall stock market declines.

Stock market risk is a significant concern, as markets tend to move in cycles with periods of rising and falling prices. Historically, this has led to fluctuations in the Fund's share price and total return.

Manager risk is another factor to consider, as poor security selection by the Advisor can result in underperformance compared to benchmarks or other funds with similar investment objectives.

Investment style risk can also affect the Fund's performance, particularly if the mix of small-, mid-, and large-cap stocks in the portfolio trails returns from the overall stock market.

Sector-focus risk is a concern if a significant portion of the Fund's assets are invested in one sector, exposing it to greater market risk and potential monetary losses.

Foreign securities risk is another risk to consider, as the value of foreign securities can be adversely affected by the political and economic environments in the countries where the Fund invests.

Here are the different types of risk associated with the Fund:

These risks can have a significant impact on your investments, so it's essential to understand them before investing in the Fund.

Fees & Expenses can be a significant factor in your investment returns. The management fee for PRIMECAP Odyssey Growth is 0.55%.

High fees can eat into your returns over time. Other expenses, such as administrative costs, are also factored into the total annual fund operating expenses. These expenses come out to 0.11%.

To give you a better idea of the total costs involved, here's a breakdown of the fees and expenses:

The expense ratio for PRIMECAP Odyssey Growth is 0.66%, which is 22% lower than its category average. This makes the fund expense ratio grade a B.

The Primecap Odyssey Growth fund has consistently delivered strong performance over the years. It has outperformed its benchmark, the Russell 1000 Growth Index, in several periods, including the 5-year and 10-year time frames.

One notable period is the 5-year time frame, where the fund returned 13.6% compared to the benchmark's 10.5%. This impressive performance is a testament to the fund's ability to navigate market fluctuations and identify high-growth opportunities.

The fund's focus on investing in high-quality, growth-oriented companies has been a key driver of its success. By holding a concentrated portfolio of 30-40 stocks, the fund's managers are able to devote more resources to each investment and make more informed decisions.

The expense ratio of POGRX is 0.66%, which is 22% lower than its category average, earning it a B grade. This is a relatively low expense ratio compared to other funds in the Large Blend category.

High portfolio turnover can lead to higher expenses and lower after-tax returns. POGRX has a portfolio turnover rate of 7%, which is significantly lower than the average of 44% for the Large Blend category.

In December 2024, POGRX returned -2.6%, earning it a C grade, as the Large Blend category had an average return of -3.2%.

Here's a breakdown of POGRX's fees and expenses:

The management fee is a significant portion of the total annual fund operating expenses, accounting for 83% of the total.

Trailing Return Ranking is a key metric to consider when evaluating the performance of an investment. The data shows that the POAGX Return has been consistently higher than the Category Return Low across all periods.

Over the past year, the POAGX Return has been 20.2%, significantly outperforming the Category Return Low of 0.9%. This is reflected in the Rank in Category, where POAGX ranked 56.50% in the 1 Yr period.

Here's a breakdown of the Trailing Return Ranking for POAGX:

This ranking indicates that POAGX has been performing well in its category, particularly over the past year. However, it's essential to note that past performance is not a guarantee of future results.

Let's take a closer look at the performance over the years. In 2020, the POAGX Return was a whopping 19.5%, but it's worth noting that this was still a relatively low return compared to the Category Return High, which reached an astonishing 2474.5%.

The performance in 2020 was a significant improvement over 2021, when the POAGX Return was -1.8%. This was largely due to the Category Return Low being -74.9%, which is a stark contrast to the Category Return High of 238.3%.

Here's a summary of the performance in each year:

In 2023, the POAGX Return was 18.4%, which is a relatively high return compared to the Category Return Low of -27.7%. This puts the POAGX Return at 56.03% in the category rankings.

The Portfolio Details of Primecap Odyssey Growth reveal a well-diversified investment mix. The current portfolio date is September 30, 2024.

The fund has a significant portion of assets invested in the top 10 holdings, with 30.6% of the portfolio's value allocated across these positions. This suggests a concentrated approach to investing.

Here are the top 10 holdings in the portfolio, along with their respective weights and market values:

Portfolio Holdings PogrX is a snapshot of the current state of the portfolio. The current portfolio date is September 30, 2024.

The portfolio is made up of various types of holdings, including equity, bond, and other holdings. However, it appears that equity holdings are the primary focus of this portfolio.

One notable aspect of this portfolio is its concentration of assets in the top 10 holdings. As of September 30, 2024, 30.6% of the portfolio's assets are invested in the top 10 holdings.

Here's a breakdown of the top 10 holdings:

The PRIMECAP Odyssey Aggressive Growth Fund has $5 billion in total assets, which is above the $4 billion average for the Large Blend category.

This significant amount of assets can have both positive and negative effects on the fund's performance. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired.

However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

The fund normally distributes its dividend income annually and its capital gains annually, with a trailing dividend yield of 0.42%, which is below the 0.75% category average.

The Primecap Odyssey Growth fund invests in a diversified portfolio of domestic and international growth stocks, with a focus on companies with high growth potential.

Primecap Odyssey Growth has a total net assets of $1.4 billion and a total number of shares outstanding of 1.4 million.

The fund's investment manager, Primecap Management Company, has a long-term track record of successfully managing growth-oriented portfolios.

The fund's investment approach emphasizes a rigorous research process and a focus on long-term growth drivers, such as innovation, market share, and return on equity.

Primecap Odyssey Growth has a management fee of 0.65% and an expense ratio of 0.95%.

Primecap Odyssey Growth has consistently delivered strong performance over the years. With a 10-year annualized return of 14.1%, it's clear that the fund's investment strategy is paying off.

The fund's focus on growth-oriented companies has allowed it to capture significant gains in the market. In 2020, it returned 22.1%, outperforming its benchmark by a wide margin.

One key factor contributing to the fund's success is its ability to identify and invest in companies with strong growth potential. This is evident in its top holdings, which include companies like Amazon and Microsoft.

The fund's investment approach has also allowed it to navigate market downturns with relative ease. In 2020, it lost only 8.5% during the COVID-19 pandemic, a significant improvement over the S&P 500's loss of 13.7%.

In the world of dividend investing, it's essential to understand the yield analysis to make informed decisions. The dividend yield of POAGX is a mere 0.03%, which is significantly lower than the category high of 33.43%.

This low yield may be a concern for investors seeking regular income from their investments. To put this into perspective, the category low is a 0.00% dividend yield, which means POAGX's yield is at least 0.03% higher.

A comparison of POAGX's dividend yield to its category peers reveals a 2.91% rank, indicating it's among the lower yielding funds in its category.

Here's a quick look at the dividend yield of POAGX compared to its category:

This table shows the stark contrast between POAGX's low dividend yield and its category high. As an investor, it's crucial to weigh this information against your investment goals and risk tolerance.

When evaluating a company's performance, it's essential to consider its net income ratio. POAGX's net income ratio is -0.39%, which is significantly lower than the category average.

This low net income ratio is a cause for concern, as it indicates that the company is struggling to generate profits. In fact, it's even lower than the category low of -2.24%.

Looking at the data, we can see that POAGX's net income ratio is ranked 31.10% in its category, which suggests that it's performing poorly compared to its peers.

To put this into perspective, the category high for net income ratio is 2.75%, which is a much more desirable metric. This highlights the significant gap between POAGX's performance and the top performers in its category.

Here's a summary of the net income ratio data for POAGX and its category:

As you can see, POAGX's net income ratio is well below the category average, which is a major red flag for investors and analysts.

To determine if PogrX will outperform, we need to consider three key pillars: the process, people, and parent. The Process Pillar assesses how sensible, clearly defined, and repeatable PogrX's performance objective and investment process is. We find that a well-defined process is crucial for consistent performance.

A high-quality management team is essential for delivering superior performance. The People Pillar evaluates the management team's experience and ability, and we find that high-quality teams outperform their benchmarks and peers. This is a crucial factor in determining future performance.

The Parent Pillar rates PogrX's parent organization's priorities and whether they align with investors' interests. We need to consider if the parent organization's priorities will support or hinder PogrX's performance. This is an important consideration when evaluating a fund's potential for outperformance.

The Primecap Odyssey Growth team is led by David Poppy, who has been managing the fund since its inception in 2015. He's got a proven track record of success.

David Poppy's investment philosophy is centered around finding high-quality companies with strong growth potential. He focuses on businesses with durable competitive advantages and talented management teams.

The fund's performance has been impressive, with a 10-year annualized return of 14.5% as of 2022. This is significantly higher than the S&P 500's 10-year annualized return of 13.6% during the same period.

Theo Kolokotrones is a seasoned investment management expert with a long history of success. He has worked in the industry since 1970 and has managed assets since 1979.

Kolokotrones has held various leadership roles throughout his career, including Chairman of PRIMECAP Management Company since 1983. He co-founded the company in September of that year.

As a portfolio manager, Kolokotrones has led several notable funds, including Vanguard Capital Opportunity and Odyssey Aggressive Growth. He previously worked at Capital Research Company, where he spent six years, most recently as Senior Vice President.

Kolokotrones' educational background includes a B.A. from the University of Chicago and an M.B.A. from Harvard Business School.

The team behind the PRIMECAP Odyssey Growth fund is led by a group of experienced managers with a combined tenure of 20.2 years, with the longest-tenured manager having been with the fund since 2004.

The fund's performance is evaluated using a grading system, which assesses its returns relative to its category. The fund's grades are as follows:

The fund's grades indicate that it has underperformed its category in the past year and five years, but has performed relatively well in the past ten years.

The PrimeCap Odyssey Growth Fund is a unique investment opportunity.

It's managed by PrimeCap Management, a subsidiary of Capital Research Global Investors, with over 50 years of experience in investment management.

The fund's investment strategy is focused on long-term growth, with a goal of outperforming the Russell 1000 Growth Index.

The Fund was established in 2010 by a group of dedicated individuals who wanted to make a positive impact in their community. They pooled their resources and expertise to create a organization that would support local causes and initiatives.

Our mission is to provide financial assistance to non-profit organizations and community groups that are working towards creating a better world.

The Fund's initial investment was $100,000, which was donated by its founders. This seed money has grown over the years through grants, donations, and fundraising events.

We're proud to say that we've been able to disburse over $500,000 in grants to date, supporting a wide range of projects and initiatives.

The PRIMECAP Odyssey Growth fund is an actively managed U.S. Equity Large Blend fund. It was launched in 2004 as part of the PRIMECAP Odyssey Funds.

The fund's main goal is to provide long-term capital appreciation. This means it's designed to help investors grow their wealth over time.

The fund invests primarily in common stocks of U.S. companies that have the potential for above-average earnings growth. It looks for companies that can outperform the market.

The fund invests in stocks across all market sectors and market capitalizations. This means it's not limited to just large or small companies.

Historically, the fund has invested primarily in large- and mid-capitalization companies. However, it has also invested a significant portion of its assets in small-capitalization stocks.

Primecap Odyssey Growth is a standout fund due to its seasoned management team. They have a high-conviction multimanager system in place.

The fund's management has been reviewed and reaffirmed, with strong ratings in the Process and People categories. This indicates a well-established and effective approach.

A key factor in the fund's success is its multimanager system, which allows for a diverse range of investment strategies. This system is a hallmark of the Primecap Odyssey Growth fund.

The analysis of the fund is based on a review from July 6, 2023.