Large growth stocks back

In the past year, T’s performance. The Rowe Price Blue Chip Growth (Symbol TRBCX always stressed with excellent long-term funds hit record deceleration why it pays to sit tight. In 2016, as the rapid growth investor, Larry Puglia large-cap manager, turned away : -capitalization stocks, blue chip index in favor of more undervalued fare, the fund lagged behind increased dramatically boosted the stock market this past fund shares, such as Amazon.com and Facebook, a drag energy and utilities stocks of blue-chip industry is often suddenly. ignore, performed very well.

However, such change of style do not last forever. large-cap growth stocks, led by the technology sector, this year the rebound and blue chip benefit. in the first three months of 2017, the fund recovery 10.4%, 4.3 percentage points to beat the Standard & Poor’s 500-stock index in the past 12 months, blue-chip, Kipling a 25 by nearly one percentage point stronger than the index. (price and earnings are 31 through March)

Over the past year, but also a reminder of blue-chip will fluctuate. the fund usually has been about 10% of Britain Than the S & P 500, but sometimes it has been more unstable in the past 12 months, it is more volatility than the index by 38%.

Has a blue-chip, however, the loyalty of return to investors. In the presence of the Fund for nearly a quarter of a century, it has an average rate of 1.0 percent per year over the S & P 500 index.

Puglia, who has more than $ 1 million of his own investments money from the fund, if the fund in 1993 opened a comanager, he in 1997 he focused on medium-sized to large companies with above-average earnings growth, strong free cash flow became the sole manager (after capital expenditures cash profit) and profit executives who wisely reinvested. Puglia said he was optimistic about the company, its executives are more willing to buy back shares, rather than the acquisition of another company because he believes is a better buy-back ways to create shareholder value.

Although the stocks of Puglia gravity, he does not like the usual expensiveOverpayment. Facebook and China’s Internet e-commerce company Alibaba may seem expensive price-earnings ratio basis. But stocks P / ES seems relatively reasonable rate of growth of the company.