Home>Video>A Solid, Reasonably Priced Core Holding

A Solid, Reasonably Priced Core Holding

Tue, 9 May 2017

Bronze-rated T. Rowe Price Value has a diversified portfolio with a slight preference recently for healthcare and consumer-related stocks.


Video Transcript

Katie Reichart: T. Rowe Price Value receives a Morningstar Analyst Rating of Bronze. Mark Finn, previously an analyst, has run the fund since 2010. He's backed by a strong analyst team at T. Rowe that provides bottom-up stock ideas.

Finn uses a relative value approach, looking primarily for large-cap stocks that are reasonably valued relative to their histories, the market, or on a sum-of-the-parts basis. The resulting portfolio is diversified across 100 or more names, with a slight preference recently for healthcare and consumer-related stocks. The fund has edged the Russell 1000 Value Index during Finn's tenure and has outperformed 85% of its large value peers.

It won't be on top in every market environment; it lagged the benchmark and peers in 2016, a strong market for value, due to some poor stock picks and above-average healthcare exposure. But it's rebounded so far in 2017, and long-term it remains a solid and reasonably priced choice for the core part of an investor's portfolio.

  1. Related Videos
  2. Related Articles
  1. 2 Free-Ranging Emerging-Markets Bond Funds

    TCW Emerging Markets Income and T . Rowe Price Emerging Markets Bond have used their ability to invest in dollar and local currency bonds wisely.

  2. Leadership Changes Don't Derail T . Rowe

    Thanks to thoughtful manager transitions, the firm's corporate culture remains stable. Plus, we recap T . Rowe fund upgrades and downgrades in 2015.

  3. Sizing Up 2 Balanced Fund Picks at T . Rowe

    T . Rowe Price Balanced offers cheaper, more-streamlined access to the company's proven allocation strategy, while Personal Strategy Balanced dips into more-specialized pockets of the market.

  4. Are Manager Changes at T . Rowe Price Cause for Alarm?

    Morningstar's Katie Reichart talks about the firm's recent manager changes, dramatic inflows into its target-date funds, and its new quantitative lineup.

  5. Navigating Winds of Change at T . Rowe

    The fund firm has seen both long-planned and surprise manager departures recently and is likely to see more change in the years ahead, says Morningstar's Russ Kinnel.

  6. Weekly Wrap: Facebook Invests, Fed Stays Put

    Facebook shares took a hit as the firm gave disappointing guidance. Plus, the Fed leaves rates unchanged and changes at T . Rowe Price .

  7. Wallack: Finding Value in Energy, One Company at a Time

    Domestic equity fund manager of the year, T . Rowe Price's David Wallack of on how he successfully invested in energy as commodity prices fell.

  8. Giroux: Long-Term Focus, Concentration, Contrarianism Pay

    We're always willing to go where we see long-term value, but the market may not, says T . Rowe Price Capital Appreciation manager David Giroux.

©2017 Morningstar Advisor. All right reserved.