Vanguard Capital Opportunity (VHCOX)
Vanguard Capital Opportunity (VHCOX) represents a fine second chance for investors to access a great stock-picking team.
VHCOX was reopened this year to new investors who invest directly with Vanguard and features a low-turnover approach to growth-stock investing.
Managed by Pasadena-based PrimeCap, this Vanguard fund has changed over time, morphing from a midcap fund into a large-cap offering over the years. Still, the results have been solid, with the fund up 38% YTD and up 11% annually over the past decade, placing it in the top 4% of its Morningstar category and attracting $11 billion in assets.
As is typical with other PrimeCap products, healthcare names are prominent and represent 37% of the 123-stock portfolio, while technology holdings account for 34%. Recent top holdings include Biogen (BIIB), Amgen (AMGN), Roche (RHHBY), FedEx (FDX) and Eli Lilly (LLY).
VHCOX charges just 0.48% annually, or $48 for every $10,000 invested, and a low 9% turnover also helps minimize drag on the fund’s returns.