The firm's lasting product shelf is its strength. Its five-year success ratio of 100% means that 100% of its strategies have both survived and beaten their respective category median. A high success ratio indicates good performance and provides insight into a firm’s discipline around investment strategy and product development. With an average tenure of eight years among the longest-tenured managers at Howard Capital Management, the firm is on par with peers. Seasoned teams tend to have more experience to draw upon should they need to weather turbulent market conditions. Fees on open-end and exchange-traded funds are a weakness of the firm, contributing negatively to the rating. On average, expenses on its funds are within the highest quintile compared with category peers. With the current market environment of fee compression, this is cause for concern, as investors may flock over time to alternate asset managers to get a better deal.
Where Primecap Management Got Its Start
Longtime fund managers Joel Fried and Al Mordecai tell the firm’s storied history.