US Large Cap Growth Equity Fund

Capital at risk. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

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Overview

Strategy

Fund Summary

We look to identify stocks with the potential to deliver sustainable, double-digit earnings growth, capitalising on both secular and cyclical growth. We are patient investors, aiming to invest in companies trading at attractive valuations relative to their long-term potential and taking advantage of cyclical opportunities to build positions in high conviction names. The manager is not constrained by the fund's benchmark, which is used for performance comparison purposes only.

Performance - Net of Fees

Past performance is not a reliable indicator of future performance.

31-Oct-2024 - Taymour Tamaddon, Portfolio Manager,

Most major US stock market indices declined slightly in October. As measured by various Russell indices, mid-cap equities outperformed both large-caps and small-caps. Growth outperformed value across all market capitalisations. Within the portfolio, the financials sector was the lead contributor due to beneficial stock selection and an overweight allocation. Our holding in a financial services technology provider was particularly helpful, supported by a strong earnings release and some favourable analyst commentary following the company’s customer conference early in the month. Consumer discretionary also assisted relative returns due to our stock picks, led by an online travel platform whose stock climbed following its report of better-than-expected profitability and room night growth in the third quarter. Stock choices in the information technology sector further boosted relative performance. Here, our position in a collaboration and workflow tool provider aided results as its stock traded higher due to several positive analyst notes ahead of the company’s late-October earnings release. On the negative side, industrials and business services detracted due to adverse security selection, particularly our holding in a credit bureau that underperformed after company management lowered guidance for the full year.

31-Jan-2024 - Taymour Tamaddon, Portfolio Manager,

We remain largely satisfied with the positioning of the portfolio. We are aiming for a balanced approach of ideas that can provide upside as well as defensive positions that can provide downside support if markets reverse course into a downturn. We continue to refrain from taking a pronounced stance on macroeconomic implications. Similarly, predicting election outcomes and subsequent market impacts is not an area of focus at this stage; however, as political agendas come into focus and the balance of political power crystalises, actionable idiosyncratic investment opportunities may present themselves.

30-Jun-2017 - Taymour Tamaddon, Portfolio Manager,

We bought shares of Starbucks during the quarter. We have liked the company for some time given its dominant global brand in both retail and consumer products channels. The coffee chain sells an addictive product and has a long runway for growth, particularly as it expands internationally. We also expect growth to accelerate due to increasing mobile order usage, new food and beverage innovation, and pricing increases.
We sold shares of Amazon.com on strength during the quarter. Although we trimmed our position size, the company remains a top holding as all indications continue to confirm that the long-term story remains intact. Improving profitability bodes well for future earnings given the healthy topline growth and operating leverage in the business.
We bought shares of medical device maker Becton, Dickinson & Company. We like the company's compelling risk/reward profile, and we believe it is poised to benefit from relatively steady revenue increases and balance sheet improvements. We are also positive on the company's pending acquisition of fellow medical technology company C.R. Bard, which could lead to scale benefits, non-U.S. growth opportunities, and cost synergies.
We trimmed our position in Danaher during the quarter to partially fund our purchase of Becton, Dickinson & Company, which we believe offers a more compelling risk/reward ratio. Danaher is a highly diversified producer of medical, industrial, and commercial products and services. While we like that the majority of Danaher's end markets offer secular growth or low cyclicality, we are less enthusiastic about the company's growth rate.

30-Jun-2017 - Taymour Tamaddon, Portfolio Manager,

Shares of PayPal Holdings traded higher following its latest quarterly report, with total payment volume and active accounts coming in higher than expected. Incremental user engagement across their product suite (PayPal, Credit, One Touch, and Venmo), combined with expanding strategic partnerships (Google, Wells Fargo, and Visa) bodes well for the company's mobile-first strategy aimed at enabling consumers with more convenient and affordable payment options.
Shares of Alphabet traded higher after the company reported another strong quarter of earnings. The diversification of products contributing to revenue growth continues to increase as YouTube, hardware, Google Play, and cloud now make up 18% of total revenue. While the search business is still a significant driver of revenue, it is encouraging to see the breadth and depth of its product offering expanding, which should support long-term durable revenue and profit growth through diversification.
Amazon.com shares rose following its latest quarterly report, with top- and bottom-line results coming in ahead of consensus expectations. Expansion of its fulfilment and logistics networks has helped drive accelerated growth and allowed it to meet the needs of its increasing global footprint. Amazon Web Services, the company's highly profitable cloud computing business, also continues to grow at a rapid pace. In our view, Amazon.com remains well positioned to compound at a healthy rate for several years as it continues to disrupt the traditional retail business model. Its recent bid to acquire Whole Foods is a prime example, as it would allow Amazon to establish an omnichannel presence and extend into new product categories while also expanding its services and private label offerings.
Shares of Tesla continued to trade higher as the company remains on track to begin production of the Model 3 in July. The overwhelming demand for the Model 3, Tesla's first mass-market car, confirms the broad appeal of all-electric vehicles and helps support the company's mission to accelerate the world's transition to sustainable energy and transport. Based on the high level of differentiated innovation at Tesla, we continue to view the company as a dominant player in the shift to autonomous vehicles.
Intuitive Surgical's robotic da Vinci surgical system continues to see growing adoption, helping propel its shares higher. Procedure growth is the engine of the business model and its latest quarterly results confirm a sufficiently broad and deep accelerating trend in that area. Growth is likely to get an additional boost as the company plans to roll out its new and previously undisclosed surgical system, da Vinci X, by year-end.
Humana reported solid first-quarter earnings, primarily driven by prior-period development in its Medicare Advantage business, sending shares higher during the period. The company also reported that its Affordable Care Act individual exchange business performed better than expected and management raised its 2017 guidance. While its merger with Aetna was shelved, Humana remains a possible acquisition target given its focus on the fast-growing Medicare market.

Past performance is not a reliable indicator of future performance.

The Funds are sub-funds of the T. Rowe Price Funds SICAV, a Luxembourg investment company with variable capital which is registered with Commission de Surveillance du Secteur Financier and which qualifies as an undertaking for collective investment in transferable securities (“UCITS”). Full details of the objectives, investment policies and risks are located in the prospectus which is available with the key investor information documents and/or key information document (KID) in English and in an official language of the jurisdictions in which the Funds are registered for public sale, together with the articles of incorporation and the annual and semi-annual reports (together “Fund Documents”). Any decision to invest should be made on the basis of the Fund Documents which are available free of charge from the local representative, local information/paying agent or from authorised distributors. They can also be found along with a summary of investor rights in English at www.troweprice.com. The Management Company reserves the right to terminate marketing arrangements.

Hedged share classes (denoted by 'h') utilise investment techniques to mitigate currency risk between the underlying investment currency(ies) of the fund and the currency of the hedged share class. The costs of doing so will be borne by the share class and there is no guarantee that such hedging will be effective.

Before deciding to invest in the fund, you should read the offering document/prospectus (including its investment objectives, policies and any risk warnings) which are available and may be obtained from any appointed distributors.

The specific securities identified and described in this website do not represent all of the securities purchased, sold, or recommended for the sub-fund and no assumptions should be made that the securities identified and discussed were or will be profitable.

A full list of the currently issued Share Classes including Distributing, Hedged, and Accumulating Categories may be obtained, free of charge and upon request, from the registered office of the Company.

Benchmark: Investors may use the benchmark to compare the fund’s performance. The benchmark has been selected because it is similar to the investment universe used by the investment manager and therefore acts as an appropriate comparator. The investment manager is not constrained by any country, sector and/or individual security weightings relative to the benchmark and has complete freedom to invest in securities that do not form part of the benchmark.

Disclosure on Vendor Indices can be found here.

Risks

Typical Investor