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T. Rowe Diversified Small Growth: Still in the Middle

T. Rowe Diversified Small Growth's massive portfolio lumbers along.

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Its super-sized portfolio holds more than 400 stocks, so T. Rowe Price Diversified Small-Cap Growth Fund (PRDSX) won't ever shoot the lights out, as some of its concentrated peers sometimes do. Of course, it's not likely to crash and burn, either. Amid the past year's tumultuous market, the fund has stayed about even with its typical peer. 

Managers Paul Wojcik and Rich Whitney don't deviate much from the group norm as far as sector weightings and valuations, and this is one reason why the fund's returns have also been pretty average lately. However, the fund has gotten something of a boost from what it hasn't owned--namely, high-flying dot-com names. Management employs T. Rowe's cautious investment style, so they didn't buy many of those risky names. This stance hurt the fund in 1999 but led them to avoid much of 2000's carnage. 

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Catherine Hickey does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.