Tonight, let's do a review of T. Rowe Price New Horizon Fund (PRNHX). From their website: The fund will invest primarily in a diversified group of small, emerging growth companies,...." Small companies are by nature more risky and volatile than large companies. There have been a couple of years of whopping losses in this fund. In 2008 it lost 38.7%, which is about what Brinker's equity portfolios lost.
The top ten holdings represent about 18% of its total holding. I never heard of any of the companies in their top ten.
The expense ratio, like with many of Bob Brinker's new funds lately, is higher than Vanguard Funds. PRNHX charges 0.81%, but there are no other fees. Minimum first-time purchase requires $2500 and $1000 in IRAs. Total fund assets is a rather low $9,141.82 million. The fund inception date is 06/03/1960.
It seems likely that anyone who would invest a significant portion of their equity holdings in this fund (right now) would have to be very bullish on the stock market going forward. Look at the volatility over the past year:
Bob Brinker's latest S&P 500 Index target range is still "upper 1400s to lower 1500s" and he recommends dollar-cost-averaging on weakness.
The beautiful lotus in the little lake near my home are still blooming, but won't be for long. They are coming to the end of their season:
It seems likely that anyone who would invest a significant portion of their equity holdings in this fund (right now) would have to be very bullish on the stock market going forward. Look at the volatility over the past year:
Bob Brinker's latest S&P 500 Index target range is still "upper 1400s to lower 1500s" and he recommends dollar-cost-averaging on weakness.
The beautiful lotus in the little lake near my home are still blooming, but won't be for long. They are coming to the end of their season:
21 comments:
This fund IS CLOSED to new investors...at least it is at Schwab.
PRNHX Buy $3,000.00 Add Fee to Total Dividends and Capital Gains
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PRNHX - T Rowe Price New Horizon Fund
NAV: 35.81 -0.12
POP: 0.00
52 Week High: 36.48
52 Week Low: 29.88
Trans. Fee Fund: Yes
Sales Load: None
As of 09/05/2012
Invested Amount: $3000.00
Transaction Fee: -----
Total: -----
Order Messages
This fund is closed to new investors. Only accounts which currently have a position in this fund may place a buy order at this time.
It looks like TA strikes again! And in spades! The Dow has bounced off that stubborn 13,000 level and the 50-day moving average at the same time.
Of course Bob says charts don't work, so we'll once again have to write this action off as another strange "coincidence", right? Yeah Bob, I believe you! Ha!
- Dan G, wallowing in 800 DDMs and loving it!
Speaking of funds, Edward Owens, manager of Vanguard's Health Care Fund (VGHCX) retired. Acc'd to WSJ article, this fund returned an average of 16.3% annually from 1984 to 2012.
The S&P 500 index had an annual return of 10.7% over the same period.
I did some Jethro ciphering on an investment of $10K in 1984 and came up with $686K vs. $172K.
Chuck...So why do you think that Bob Brinker would recommend a fund that is closed to new investors?
Have you checked out Vanguard or Fidelity to see if it's closed there?
Chuck...So why do you think that Bob Brinker would recommend a fund that is closed to new investors?
Have you checked out Vanguard or Fidelity to see if it's closed there?
I don't know why he would recommend a closed fund. No I have not checked Vanguard or Fidelity because I don't have an account there.
Nor have I checked T. Rowe Price directly. I just know you can't buy it from Schwab.
Chuck,
I checked out the T.Rowe Price website. It is not closed there.
This fund is closed at Schwab and Fidelity. Here is the reason I believe:
I think this fund is closed to new investors at Schwab and Fidelity because T. Rowe Price wants to closely monitor the inflows into this fund. This is a small-cap fund so size can become an issue fast. By making it only available directly through T. Rowe Price they can closely monitor who gets in and also allow more shares to be available for customers who have accounts directly with T. Rowe Price.
While this has been a fine fund,IMO Bob Brinker should have chosen another fund which is smaller in size. T.Rowe Price could close this at any time, and then he must find a replacement. I think anyone considering this fund should act fast.
Thanks Jim!!!
So the only place we haven't checked is Vanguard. Maybe I'll poke around over there for awhile and see what I find.
I agree that this is a questionable choice -- for all of the reasons you stated.
My Super-Secret-Source told me today that my article got a lot of attention from T. Rowe Price.
Which in turn tells me that they are trying to figure out the connection to Bob Brinker.
Which means they've had a lot of activity at their website -- probably buying the fund.
Jim and all,
I checked the Vanguard website. PRNHX is closed to new investors.
So here is how it stands: PRNHX is closed at Charles Schwab, Vanguard and Fidelity. It can be bought through T. Rowe Price.
Not a smooth move for Bob to make....
The market is just "inches" from becoming overbought after yesterday's bonanza. And it's at new 4 year highs. So it would seem to be time for short term traders to take those luscious profits and go into the weekend flat. Anyway, that's what I just did.
BobFan --
Since Bob just recommended it, sounds like you want in real bad! Hope you don't end up regretting it and thus ultimately ripping Bob again over another losing investment!
Bobfan,
I find it really strange that you could read anything I wrote about the fund or any of my comments here and conclude that I "want in real bad."
BobFan here ---
Its just so ironic that you follow every word that Brinker prints and says on his radio show, and have done so for many, many, many years and yet you rip him constantly and dog him relentlessly over the same period of time. Come on, deep down inside you respect his advice for the most part. Why can't you admit it???
BobFan sez -
like Bob says "you want to have your cake and eat it too"
Bobfan,
If you have a problem with me or this blog, I invite you to take it somewhere else.
This blog is about truth -- the same thing that I have been about since I discovered that Bob Brinker often is not truthful about what he has said or done on Moneytalk -- or in claims he makes about his market-timing skills.
This is the place to find the whole truth and nothing but the truth. You do not get that on Moneytalk.
His financial advice is broadcast over the national airwaves every week, and as long as he continues to sucker people, I will continue to set the record straight.
Certainly I respect the basic investing principles that he teaches. I've never said otherwise.
And I also find him quite entertaining at times, so as I have said, this really is a Bob Brinker Fan Club.
What about that TEFQX fund Brinker recommended long ago? He's had it "hold for future recovery" forever....Brinker recommended at $16 or $17 if I recall and still down $10 http://finance.yahoo.com/q?s=TEFQX%2C+&ql=0 at $6.47
Long-Term Memory,
Bob Brinker basically covered that up in Marketimer, like he does all of his market timing buy-signals that go south on him -- and those who follow him.
Brinker never added that fund to his model portfolios, just like he never added his QQQQ buys. That way, neither blunder affects his long-term OFFICIAL performance record.
His long-term performance looks pretty good as a result.
Here's a link to your graph that shows what happened to the stock right after he recommended it in 2000:
TEFQX Chart
TEFQX is a non-diversified fund with 80% of its investments in the tech sector.
Assets, $102 Million, AAPL its largest holding at about 18% -- the large draft horse pulling the wagon.
Share price on Dec 30 2011 = $5.40.
Close on Sept 7 = $6.50.
Buyers at $5.40 are happy campers in the catbird seat. Buyers at BB's buy recommendation not so much.
YTD return acc'd to my Jethro Ciphering, 20.3%. Yahoo has them at 11.48% YTD (?).
Oh, Expense ratio 1,85%, ouch!
The HottieBee states:
...any of my comments here and conclude that I "want in real bad."
I promise to be good, I promise to be good - LOL!
Tried to buy new horizons via my vanguard account. IT IS CLOSED. Bob is getting very sloppy or careless. I don't think I will renew my newsletter come March 2013.
Here's a follow-up that's left me more than a little disappointed. I spoke to a T Rowe Price rep.and they told me that customers who use Vanguard or Fidelity cannot access the New Horizons fund. It is not like they are just temporarily closed to new investors but this has gone on for some time. They also told me that they were getting a lot of calls and complaints based on the Marketimer newsletter. I called the Marketimer office and were doing damage control sounding like they were caught flat footed. It makes me wonder whether Bob is even engaged at this point. This seems very sloppy and indicates poor attention to detail. These are not traits that make for good money management.
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