Michael,
I made an error when I posted my holdings of PBHG funds. My original goal had been to establish positions at 40% Limited, 40% Core Growth, and 20% Tech and Communication. However, when they announced the Large Cap 20, I decided that I would shift half of what I had planned for the Core Growth to the LG. Cap 20. So, actually, I'm at 40% Limited, and 20% each Core, Tech & Comm., and Large Cap 20. This gives me a balance of small cap (Limited), mid cap (Core), and large cap. The reason the Limited has a higher percentage is that you had to buy in immediately in July and can't add to your holdings as they have exceeded the target for fund assets that they had set. I intend to add to the others to catch up with the Limited so that I have a 25% balance across the board. Of course, that's my thinking today.
I liked the Large Cap 20 because I see it as focusing on the best large cap issues with the greatest growth potential, similar to the Select Equity that invests in no more than 30 equities that PBGH views as good performers. I should mention that I have both of my children invested via custodial accounts in the Select Equity. Select Equity is one of the most volatile of all the PBGH funds, which is why I figure it's better for the long term prospects of my children, than myself. I wouldn't think that the Large Cap 20 should be quite as volatile, given the $1 Billion or more capitalization requirements of the stocks within which it will invest. Of course with any major correction, it will be hit just like all the rest. As was mentioned, PBHG does well with new funds, which is also why I slected the Large Cap 20 over the Large Cap Growth. It's probably a case of six of one, half a dozen of the other; we'll see.
One thing I also look at is the managers. I don't want all my hodings with one person. Christine Baxter manages the Limited and Emerging Growth, while James McCall does the Core Growth and Large Cap 20. Neither are involved in Tech and Comm.
McCall had done so well with Core Growth at the outset, I figured he would do well with the L. C. 20. Fund families also tend to put their best picks in their newest funds to make sure they get off to a good start. Another reason you might want to consider the L.C. 20.
I agree that the Emerging Growth is getting large, especially for a fund that was targeting small caps. That's why C. Baxter stated this summer that she would be allowing larger companies within the portfolio. However, it remains volatile and hasn't done as well as others. If you're looking at just one holding, consider the Tech & Communication. While it's risky to invest in just one sector, the returns on this fund are phenomenal. It's only volatile in terms of what the techs are doing, not so much the Dow or S&P 500. So if you think technology is going to stay strong, even if the Blue Chips get over sold, then this could turn out to be a safer pick right now than either large cap fund. It also has to have the greatest chance for growth right now given the general market situation. I don't think that size (toatl assets) is as much of an issue with this fund, but if you think you might want to get in, do so fairly soon because its >50% returns are starting to get attention. You wouldn't want to see it closed on you.
Marc |
