Capital Opportunity Fund Investor Shares (VHCOX)

Closed to new investors.

 
 

OPTIONS as of
01/28/2014

Options Expense ratio Minimum
Admiral 0.41% N/A
Investor 0.48% $3,000

About our options  


 

Fees

Purchase fee:

A fee charged by some mutual funds when an investor buys shares. This fee is not a sales charge or load because it is paid directly to the fund to offset the costs of trading certain securities.

 None
Redemption fee:

A fee charged by some mutual funds when an investor sells shares. A redemption fee differs from a back-end load because the money is paid back into the fund. Many funds charge redemption fees only when shares are bought and then sold within a specific period of time, generally in an effort to discourage market-timing and short-term trading. Some brokers also charge their clients redemption fees for the sale of securities.

 None

KEY FACTS

Designation: Domestic Mid-Cap Growth
VHCOX
 inception on 08/14/1995
$12.3 billion total net assets

This represents the total net assets for all share classes of Vanguard's U.S. funds, as well as any collective trust that shares the same investment strategy, management and holdings.

 as of 03/31/2014
$3.0 billion net assets for
VHCOX
 as of 03/31/2014
124 holdings as of 03/31/2014
Benchmarked to the Russell Midcap Growth Index
Turnover rate (Fiscal year-end  09/30/2013) 8.70%

STYLEBOX

Stock
Portfolio of mid-, small-, and large-capitalization growth-oriented equities.



Expected range
Central tendency

About our styleboxes  

Investment approach



  • Multi-cap growth equity.
  • Seeks long-term capital appreciation.
  • Invests in out-of-favor growth companies at attractive valuations.
  • Fundamental stock selection process.
  • Four managers develop separate subportfolios.
  • Portfolio may be concentrated by sector and holdings.

Total returns

View as:

as of 03/31/2014

30%
25
20
15
10
5
0%
 
 
 
 
 
  1 year 3 year 5 year 10 year Since inception

08/14/1995

NAV 
29.31% 16.58% 22.44% 10.25% 12.38%
Benchmark

Russell Midcap Growth Index

*
24.22% 13.52% 24.73% 9.47%

Note: Fee adjusted for mutual funds where applicable.

* Measures the performance of those Russell Midcap Index companies with higher price/book ratios and higher predicted and historical growth rates.

The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited.


People and process

Firms

PRIMECAP Management Company

Product management

Vanguard Capital Opportunity Fund seeks long-term capital appreciation, using a fundamental approach to invest in growth-oriented companies at attractive valuation levels. The fund has the flexibility to invest across all market capitalizations and industry sectors, although holdings are generally mid- and small-cap stocks. The fund tends to focus on companies with the potential for rapid earnings growth that are currently overlooked by the market. The fund’s five managers rely almost exclusively on independent research. Each manager is responsible for a separate subportfolio and has autonomy to implement his best ideas. The managers anticipate holding companies for at least three to five years, resulting in low turnover. The portfolio may be relatively concentrated, with the top ten holdings often representing 30%–40% of assets.

Firm and manager details  

Sector weightings

  Sector  VHCOX
as of 03/31/2014
Benchmark

Russell Midcap Growth Index

as of 12/31/2013
Health Care 35.4% 13.2%
Information Technology 34.3% 16.4%
Industrials 13.3% 15.1%
Consumer Discretionary 10.1% 25.0%
Materials 2.4% 5.8%
Financials 2.3% 8.3%
Energy 2.2% 6.0%
Consumer Staples 0.0% 8.0%
Telecommunication Services 0.0% 1.5%
Utilities 0.0% 0.7%
Other 0.0% 0.0%
0%
40%
Total 100.0% 100.0%

Sector categories are based on the Global Industry Classification Standard system.

Top 10 holdings as of 03/31/2014

Rank Holding
1 Biogen Idec Inc.
2 Amgen Inc.
3 Roche Holding AG
4 Eli Lilly & Co.
5 FedEx Corp.
6 BioMarin Pharmaceutical Inc.
7 Google Inc.
8 Medtronic Inc.
9 Monsanto Co.
10 Adobe Systems Inc.
Top 10 equals 33.5% of net assets

Portfolio holdings may exclude any temporary cash investments and equity index products.

Holdings policy for this fund  

Fundamentals

Stockas of 03/31/2014 VHCOX Benchmark

Russell Midcap Growth Index

Number of stocks 124 502
Median market cap $33.0 billion $11.6 billion
P/E ratio 26.1x 26.9x
P/B ratio 3.4x 4.9x
Turnover rate 8.7% Fiscal year end 9/2013 N/A

Risk and volatility as of 03/31/2014

  VHCOX Benchmark

Russell Midcap Growth Index

R-squared N/A 0.91
Beta N/A 0.92
Alpha 0.30 N/A
Standard deviation 14.78% 15.26%
Sharpe ratio 1.12 0.88

Risk and volatility are based on the share class with the earliest inception date.

Risk measures are calculated from trailing 36-month fund returns relative to the associated benchmarks.

An investment in the fund could lose money over short or even long periods. You should expect the fund’s share price and total return to fluctuate within a wide range, like the fluctuations of the overall stock market. The fund’s performance could be hurt by:

  • Stock market risk: The chance that stock prices overall will decline. Stock markets tend to move in cycles, with periods of rising stock prices and periods of falling stock prices.
  • Investment style risk: The chance that returns from small- and mid-capitalization growth stocks will trail returns from the overall stock market. Historically, small- and mid-cap stocks have been more volatile in price than the large-cap stocks that dominate the overall market, and they often perform quite differently. Small and mid-size companies tend to have greater stock volatility because, among other things, these companies are more sensitive to changing economic conditions.
  • Manager risk: The chance that poor security selection or focus on securities in a particular sector, category, or group of companies will cause the fund to underperform relevant benchmarks or other funds with a similar investment objective.



 
 
 
 

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