I bet investors are glad he stuck around now: YACKX has outperformed the market since the financial crisis, with a three-year return over 18% — 2 percentage points better than the S&P 500, and much better for the large-blend benchmark. In the past year, the story is much the same — Yacktman’s mutual fund sneaked ahead of the market and blew away other large blends.
The fund has a relatively concentrated portfolio, with a good chunk of its holdings in consumer stocks like Coca-Cola (NYSE:KO), PepsiCo (NYSE:PEP) and Procter & Gamble (NYSE:PG). Yacktman tends to go for high-quality picks that boast consistent earnings and cash flow — a slow and steady investment approach that lends itself to large-cap companies.
YACKX is slightly cheaper than Contrafund, with an expense ratio of 0.8%.
Larry Puglia, T. Rowe Price Blue Chip Growth Fund
The T. Rowe Price Blue Chip Growth Fund (MUTF:TRBCX) is another fund with solid performance under long-standing leadership. Its manager is Larry Puglia, who joined T. Rowe Price (NASDAQ:TROW) in 1990, then three years later took the wheel at this fund just as it was started. His tenure at TRBCX is fast approaching the 20-year mark.
I can’t imagine a scenario where Puglia won’t make it to two decades, considering his track record. Look at any of the fund’s returns since the end of last quarter (one-year, three-year, five-year, 10-year, since inception), and they all beat both the S&P 500 and the Lipper average for large-cap growth funds — a pretty good history.
In the past year, for example, TRBCX boasts a 7% return that dwarfs the large-cap Lipper average return of less than 2% and the S&P’s return of just under 6%. And in the past three years, TRBCX didn’t just ride the market’s wave, but swam ahead of it while leaving the benchmark behind as well.
As the name implies, the fund invests in a wide range of well-known companies — specifically, ones with big growth potential. TRBCX’s holdings include familiar names like Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Starbucks (NASDAQ:SBUX), Qualcomm (NASDAQ:QCOM) and FedEx (NYSE:FDX).
Puglia hasn’t lost anything with age, but instead keeps on trucking along. Throw in cheap expenses of 0.77%, and you have a pretty solid foundation.
Note: All returns are based on results as of last quarter’s end.
As of this writing, Alyssa Oursler did not hold a position in any of the aforementioned securities.